Sara's Business Plan Templatecarolinasmallbusiness.org/wp-content/uploads/2016/09/... · Web...

Organizational Value PlanFor a Business or a Nonprofit Organization

Created by Sara Stender for Western Women’s Business Center, a program of Carolina Small Business Development Fund

Western Women’s Business Center • A-B Tech Small Business Center, 1465 Sand Hill Rd., Candler, NC 28715 Phone: 828.633.5605 • www.thesupportcenter-nc.org/lending/wwbc

TITLE PAGE(with confidentiality statement as needed)

TABLE OF CONTENTS

1. Executive Summary (1-2 pages)To be written after the entire plan is complete

2. Business Description and Identity (2 pages)Includes background, mission and vision, core values, product or service

3. Industry Analysis and SWOT (linking business description and marketing plan) (1-2 pages)

4. Marketing Plan (2-10 pages)Includes marketing mix and strategy, target audience, branding, advertising schedule, pricing, corporate social responsibility plans

5. Financial Projections (6-20 pages)(Note if existing business, historic financial statements will go into the appendix)-Critical Financial Assumptions (up to 6 pages) - Referencing all assumptions made in the following projections and line item descriptions-Pro Forma Income (Profit and Loss) Statement, Year 1, monthly (1-2 page)-Pro Forma Income (Profit and Loss) Statement, 3 years (1-2 page)-Pro Forma Cash Flow Statement, Year 1, monthly (1-2 page)-Pro Forma Cash Flow Statement, 3 years (1-2 page)-Pro Forma Balance Sheet (1 page)-Start-up Cost and Financing Mix (1-2 pages)-Break-Even (1/2 page)-Margin (1/2 page)

6. Operations and Management Plan (1-8 pages)(This section could also go before or after Marketing Plan)Includes how the organization will be formed / type of business license; facility and location; hours of operations; equipment used if applicable; systems used such as for record keeping, accountability and inventory; a separate sub-section for ownership and management including key staff / board members / partners and their qualifications/strengths

7. Strategic PlanIncludes compiled goals and measurements from each of the above core components; any proposed partnerships and collaborations that may not have otherwise been describedOptions for Appendix Items:-Loan payment details if seeking financing (use template provided by potential funder / institution)-Financial statements, historic-Customer traffic analysis if appropriate-Resumes of owners / key personnel-Product menu or list of items / services the business will offer, including pricing-Photos of product, building, designs or plans if applicable-Anything else that will build a compelling case and speak to the primary audience

EXECUTIVE SUMMARYThis section comes first in the hard copy business plan but this is a compilation of key elements

taken from the plan. The summary is about one page and is created last.

"Insert quote that inspires the organization and conveys vision." - name

Vision StatementExample (Carolina Small Business Development Fund):Our vision is to create economic opportunity for all people.

Mission Statement See Marketing Plan Example:The mission of the Western Women’s Business Center, a program of Carolina Small Business Development Fund, is to provide capital, high quality technical assistance and programs that reduce barriers and serve as a catalyst to the success of entrepreneurs, particularly women who are socially and economically disadvantaged, in Western North Carolina.

Company DescriptionInclude name of organization, founders and key personnel, what is offered and why it fills a need, any niche offerings and where the products/services can be accessed.

Keys to SuccessInclude any noteworthy elements from industry analysis and importance of location / timing; other consideration for your readers may go here.

Financial RequirementsIf you are seeking financing / investors, note key financial needs and projections here.

GoalsPull from core components throughout the business plan.

● Marketing:● Operations:● Financial:● Management and Human Resources:

BUSINESS DESCRIPTION AND IDENTITYIncludes background, mission and vision, core values, product or service

BackgroundThis is a good place to get personal and describe how you came up with the idea and what it means to you, the founder. Make it catchy. Was there an unmet need that you identified? What sets your business apart?

Vision StatementWhat do you plan on doing (long-term)? This is the big picture and could be about creating big change. You do not need to explain how you will realize your vision in this section but it will draw your customers in through an inspirational and easily understood description.

The following is a good example of a nonprofit vision statement: Care: “We seek a world of hope, tolerance and social justice, where poverty has been overcome

and people live in dignity and security. CARE will be a global force and a partner of choice within a worldwide movement dedicated to ending poverty. We will be known everywhere for our unshakable commitment to the dignity of people.”

Mission StatementThis comes after you have a firm vision statement. The mission statement details how your organization will achieve that vision. It is a critical guiding tool, for internal purposes and also to communicate to external stakeholders and clients. Refer to the mission statement when making a decision by asking questions like: “Is this in alignment with the mission? Does this option or decision reinforce the organization’s values? Will this decision result in progressing toward the overall vision?” The statement can be one sentence or one paragraph. It will guide you for years to come.The following are some good examples of mission statements:

Uber: “By seamlessly connecting riders to drivers through our apps, we make cities more accessible, opening up more possibilities for riders and more business for drivers.”

Facebook: “Founded in 2004, Facebook’s mission is to give people the power to share and make the world more open and connected. People use Facebook to stay connected with friends and family, to discover what’s going on in the world, and to share and express what matters to them.”

Africa Healing Exchange: “Africa Healing Exchange’s mission is to provide resilience training to caregivers in post-conflict communities, enabling them to pass along the skills to youth and families who are suffering from trauma-related illnesses, helping to end the cycle of trauma.”

Mission StatementInsert

The ProductDescribe here in about a paragraph specifically what you are selling (the product or service). The description should be written as if your clients are the readers.

Core ValuesDescribe the company’s culture – what does it stand for and what are the principles behind the leadership, the products, the mission? The values do not change. Example from Whole Foods: We sell the highest quality organic products available.

We satisfy, delight and nourish our customers.We support team member excellence and happiness. We create wealth through profits and growth.We serve and support our local and global community. We practice and advance environmental stewardship.

INDUSTRY SECTOR OVERVIEWInclude research and trends here to show you have done your homework and that you know there is

room for a new business. Reference any industry associations, publications, emerging technologies and leaders in the field. This section is meant to be objective.

SWOT (strengths – weaknesses – opportunities – threats)Insert chart with 4 squares, noting internal strengths and weaknesses and external opportunities and threats. Examples might include:

S unique service, market leader, competitive pricing, skilled support teamW lack of experience, high overhead, complex supply chain, limited capital on handO limited competition and high barriers to entry, large ideal client base, high profit marginsT economic and political influences, competition, industry sector reputation, demographics

Competitor Analysis

Name of competitor's organization:

Name of their product/service:

Common markets that we serve:

Benefits of their service:

Comparison of their pricing and ours:

Strengths and weaknesses of their service:

How our service compares to theirs:

Market ShareInsert graph / chart to depict anticipated market share.

MARKETING AND PROMOTIONS PLAN

Positioning StatementThis clearly communicates how your organization is unique. The statement depicts how you want others to view the organizations and may be accessed to create quality ads and promotional strategies.

Messaging for External StakeholdersInsert proposed script for your team members to use when speaking to the public, to ensure consistent communication. This can also be used building interest amongst media sources, with the primary purpose to educate and sell more.

Stakeholders, Messages and Methods (Media Plan and Calendar)Consider the major stakeholders for your organization, for example, employees, volunteers, board members, funders/investors, reporters, collaborators, and associations. Consider how you would like each stakeholder to view the organization. What media do they read and listen to and when? What media is most practical for you to use in terms of access and affordability?

Suggested Formatting:

Stakeholder #1: Message:Method to deliver the message: Schedule and frequency of delivery:



Procedure for Managing Media ContactsThe following procedure will be used for all inquiries to and from media contacts:Insert guidelines for staff to understand the preferred protocol.

Preferred Media and ContactsThe following media and contacts are preferred when promoting our organization. These media and contacts have been used in the past.

Media #1 Name:Primary Contact (phone, email, title): Notes:

Media #2 Name:Primary Contact (phone, email, title):

Notes:

Media #3 Name:Primary Contact (phone, email, title): Notes:

Target Markets and Client ProfilesReference the product description in above section, adding more detail here. Include the specific groups of clients served and how the products or services are delivered. Describe anticipated outcomes, benefits for clients and how they can access the products/services. Key details to address might include: pricing, convenience, location, quality, service and atmosphere.

Target markets are the specific groups of people whom you want to benefit with your product / service. The target markets are determined by your program goals, outcomes and strategies. List out each target market and how they will benefit from the product/service.

The more you know about your clients the better you will serve them. Create a profile for each audience group (target market), considering any of the following demographics: age, gender, income, education, interests and hobbies, children, profession, neighborhood, etc. Consider how you will help them meet real or perceived needs and how will you connect with them to communicate this.

Target Market #1 Title: Demographics:How will they benefit:



Pricing AnalysisWhat's the current fee for services?

How much is it costing us to provide this service?

Are we recovering our costs to produce and provide the service? Is the current fee affordable to clients?

Is our pricing competitive?

What should be the pricing structure that we use for this service (for example, sliding-fee scale, deferred payments, installment payments, etc.)?

Sales PlanTarget Market #1Sales method (to generate leads, follow-up, presentations, closing sales): Sales goal (appointments, contracts, donations, returns, revenue):

Target Market #2 Sales method: Sales goal:

Target Market #3 Sales method: Sales goal:

Advertising PlanThe plan includes what target markets you want to reach, what features and benefits will be communicated and how you will implement the methods. Consider radio, newsletters, classifieds, displays/signs, posters, word of mouth, press releases, direct mail, special events, brochures, neighborhood newsletters, and more. Reference your budget and financial projections to ensure the plan matches what you funds allow.

Media Outreach and CalendarWhat do you want your target markets to think about your service? What media do they read and listen to and when? What media is most practical for you to use in terms of access and affordability?

Target Market #1Message for them (what will they get?): Method of delivery:Schedule:



Distribution PlanningHow will you deliver your product/service to your customer? Consider: Should clients come to your facility or do you go to them? What are other means to deliver and does it require in-person / shipping / telephone / Internet?

Customer Service PlanConsider: Are clients very satisfied with your services? How do you know? If not, what can you do to improve customer service? How can you do that? What policies and procedures are needed to ensure

strong customer service?

Monitoring and Evaluation PlanConsider how you will measure effectiveness and how performance will be evaluated. Who will be responsible and will you hire a third party, outside consultant to ensure unbiased results? How frequent will the evaluations take place and in what form?

List out goals, key personnel, dates /frequency, anticipated outcomes and how the reports will be formatted and delivered.

Key questions while monitoring the implementation of this business / organizational value plan1. Are goals and objectives being achieved?

2. How will you ensure goals will be achieved according to the timelines specified in the plan?

3. How did you decide on the deadlines and are they reasonable? Do key personnel agree and feel supported in making those deadlines?

4. Does staff have adequate resources (money, equipment, facilities, training, etc.) to achieve the goals?

5. Should priorities be changed to put more focus on achieving the goals?

6. If goals / deadlines are not being met what is the process for changing them and how will you determine the cause/s?

7. What can be learned from the monitoring and evaluation in order to improve future planning activities?

FINANCIAL PLANSee sample spreadsheets and financial templates for creating the four primary financial statements

described below.

This section is sometimes considered the most important component of the business plan, especially when you plan on approaching investors and/or lenders because it shows that your organization has a solid foundation. It also exemplifies that you as the founder / president have financial planning skills, are detail-oriented and have considered various scenarios as you carefully calculate the projections for three years. Internally, the calculations guide you to make important decisions about allocating funds. The financial projections are completed after you have analyzed the market and have goals in place.For an established business, the financial plan will include historical data including the past three-five years: income statements, balance sheets and cash flow statements. Anything else that strengthens the financial position of the organization should be included for lenders and creditors. This might include an appendix with: credit history, resumes and letters of reference.

For any organization, whether established or start-up, projected data (usually three years) will need to be provided. Each year's documents should include forecasted income statements, balance sheets, cash flow statements, and capital expenditure budgets. For the first year, you should supply monthly or quarterly projections and then annual for years two-three. Occasionally a creditor may request up to five years of projected financial statements and calculations.

Always cross-reference data from each spreadsheet and ensure the figures match what you are requesting if you are approaching lenders. Also include a short analysis of the financial information, such as ratio and trend analysis for all financial statements and copy / paste visual representations of your findings.

1. Profit and Loss Statement and Projections (P&L, also referred to as the Income Statement) This shows the organization’s activity that generates a net profit (your bottom line). The calculations summarize revenues and costs incurred during a specific period of time, and helps to know how to increase profit (when increasing revenue and decreasing expenses).

Assumptions Insert one paragraph explaining any information that was evaluated or issues that were considered when deciding on the figures that you used in creating the spreadsheets.

Insert graph-chart-spreadsheet/s.See sample spreadsheet template and after entering values, copy and paste the chart / statement on one page here, within the body of these word document.

2. Cash Flow Statement and ProjectionsThe Cash Flow financial statement details how funds come in and go out of the organization, indicating when expenses are too high and to help determine if short-term investments are required. It also shows how much capital investment the organization will require. The spreadsheet displays operating, investing and financing activities of the organization.


Insert graph-chart-spreadsheet/sSee sample spreadsheet template and after entering values, copy and paste the chart / statement on one page here, within the body of these word document.

3. Balance SheetThe balance sheet financial statement estimates the resources required for the organization to get started and operate fully over the next three years. It helps management determine where resources should be allocated and how they will be financed. The balance sheet is linked to the profit and loss statement and the cash flow statement and should be cross-referenced with those values.


Insert graph-chart-spreadsheet/s.See sample spreadsheet template and after entering values, copy and paste the chart / statement on one page here, within the body of these word document.

4. Break-Even AnalysisThis calculation is often depicted in chart form, with a line that shows the break-even point at zero, when the organization’s revenue is equal to expenses. This is the point when you can expect to start making a profit. You must know what your start-up cost will be, to help determine sales revenue needed to cover business expenses until the break-even point.

B/E = fixed costs / (unit selling price – variable costs)

Fixed costs are expenses that do not vary with sales volume, such as rent and administrative salaries. These expenses must be paid regardless of sales, and are often referred to as overhead costs (rent, insurance, salaries). Variable costs fluctuate directly with sales volume (inventory purchase, part-time wages, shipping).


Insert break-even graph using the above calculation.

OPERATIONS AND MANAGEMENT PLAN

Business TypeIn this section include a description of how the organization will be formed and what the structure will be. Note licenses, registration, any pending trademarks.

Facility and LocationInclude description of the space and cost, size, neighborhood, how it was strategically selected. What will hours of operation be? List equipment if applicable and what systems will you use for record keeping, accountability and inventory.

Ownership and LeadershipList key personnel and their qualifications (you may want to use appendix for resumes if impressive). If people have not yet been hired for leadership, describe how they will be selected and where recruited. How will they support the company’s core values?

STRATEGIC PLAN

Includes compiled goals and measurements from each section of this business value plan. Highlight steps that will be taken to get from start-up to sustainability mode, to ensure you have fully thought out and calculated for the future, at least three-five years out. Consider including a description of any proposed partnerships and strategic alliances within the industry and with complementary organizations that you may not have already described. Reference monitoring and evaluation plan. You may even include an exit strategy here, if your goal is to build a business that is replicable and may be sold in the future.

GoalsGoals should "SMARTER" : Specific, Measurable, Acceptable to those people working to achieve the goal, Realistic, Timely, Extending the capabilities of those working to achieve the goals and rewarding to them. Pull primary goals from each section throughout the plan, paying special attention to the SWOT opportunities section as well as market share and financial projections.

For each goal, include expected timeframe and deadlines. You may include a Key Performance Matrix, depending on the Management Plan and the type of leadership, organizational structure and culture. Include goals for growth, in product/service offerings as well as any anticipated geographic/demographic expansion.

Describe how the organization has value added and is differentiated, and how it will further leverage and capitalize on the unique selling points.

How will leadership ensure goals are met?Reference monitoring and evaluation plan, committees and meetings that will take place, with key questions to be reviewed regularly.

APPENDIXItems to consider (by section)

Business Description and Identity Core Values Product menu or list of items / services the business will offer, including pricing Photos

Industry Analysis SWOT matrix Marketing and Promotions Plan Market share Customer traffic analysis

Financial Plan Loan payment details Financial statements, historic and any tax filings/990s

Operations and Management Plan Resumes of owners / key personnel

Strategic Plan

Cross-reference narrative to ensure correct order (A, B, C…) as referenced throughout the organizational plan.

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