Business Plan Guidelines
Every business venture can benefit from the preparation of a carefully written business plan. The purpose of the business plan is to:

1. Help you think through the venture and ensure that you have considered all your options and anticipated any potential difficulties.

2. Convince potential lenders and investors that you are in control of the project and that their money will be safe with you.

3. Serve as an operating guide as you turn your ideas into a viable business.

The following provides a suggested outline of the material that should be included in your business plan. The final product should be tailored to fit the circumstances and personality of you and your business.

Cover
This should include: Name, address and phone number of business. Give your plan a businesslike appearance by typing it on high quality paper and putting it in a vinyl or cardstock binder or a three-ring notebook.

_title_ Page
The business name, address and phone number, and add the names and addresses of the principal owners. Also show the date of issue of the plan and type “copy number________” so you can number and control the copies.

Executive Summary
A brief (one page) statement of the business plan _object_ives. Address the following questions and add additional information that will help you achieve your goals. (You may choose to write this page last.)

What is the purpose of this plan?
will it be used as an operating guide?
will it be used as a financing proposal?
Who are the principals and what are their proportions of ownership?
Why will the venture be successful?
edit Questions for Business Plan Financing Proposals
Who is requesting the funds and how much is needed?
What will the money be needed for?
How will the funds be repaid?
What collateral will be offered to secure the loan?
Why does a loan or an investment make sense?
impact on local economy
job creation.- increased tax _base_
investment in the future of the community
edit Table of Contents
A single page showing major topics and page references

De_script_ion of Business
Answer as many of the following questions as are appropriate:

What business are you in?
type of business: primarily merchandising, manufacturing or service?

what is the nature of the product(s) or service(s)?

what will be special about your business?

What market do you intend to service? What is the total market, and what is your expected share?

How can you serve the market better than your competition?

Present status of the business: start-up, expansion of a going concern, or take-over or an existing business?

If you will be doing any contract work, what are the terms? Reference any firm contracts and include them as supporting documents.

Do you have letters of intent from prospective suppliers? For an existing business:

What is the history of the business?

Why does the owner wish to sell at this time?
If the business is going downhill, why? How can you turn it around?

How will your management make the business more profitable?

What changes do you plan to make in the business?

What is the purchase price formula? Give breakdown for building, improvements, equipment, inventory and goodwill?

Note: If yours will be a seasonal business, make sure the seasonality is reflected in your narrative and financial projections with appropriate footnotes.

Business Location

What is your business address and why did you choose that location?

Will the building be leased or owned?

What are the terms and length of the lease contract?

What renovations will be needed and at what cost?

Describe the neighborhood (e.g., stable, changing, improving, deteriorating)

What other kinds of businesses are in the neighborhood?

How much can your business expand before you will be forced to move or add on to the present
building?

Licenses and Permits

Is your business name registered with the secretary of state?

State how local zoning regulations will affect you.

What other licenses or permits will you be required to obtain?

Management

What is your business and management experience?

What education have you had, including both formal and informal courses, that contributes to your managerial abilities?

Are you physically suited to the job?

Do you have direct operational and/or managerial experience in this type of business?

Describe your organizational structure and include a brief de_script_ion of who does what. (Include an organizational chart if necessary.)

List proposed salaries and wages.

What other management resources will be available (accountant, lawyer, SBDC)?

Personnel

Write a paragraph or two about your personnel needs.

What are your anticipated personnel needs?

What skills must your employees have?

Can you use part-time help to meet changing business volume?

Will you have to train people, and at what cost?
edit Insurance

Describe your potential business risks and tell what insurance coverage you will purchase to protect yourself.

The Market

Generally explain who needs your product or service and how you plan to reach them.

What is the present size and growth potential of the market?

What percent of the market will you have now and in the future?

Describe age, sex, occupation, life_style_, income, etc., of your various market segments.

How will you attract and keep your segment of this market?

product quality
price
place
promotion
persuasion-personal selling

What features or services will you offer that will justify your price?

How will you handle credit sales?
extend your own credit
accept major credit cards
edit Competition

Briefly describe your competition and tell how their operations are similar and dissimilar to yours.

What is your unique selling proposition and how will you use it to control your market share?.

Financial Data

Source and application of funds statement.
Capital equipment list.
Current balance sheet and income statement (less than 90 days old)
edit Break-even analysis
Projected income statement
detail by month, first year
detail by quarter, second year
notes of explanation and assumptions
edit Cash flow projections
detail by month, first year
detail by quarter, second year
notes of explanation and assumptions
edit Projected balance sheet
Notes of explanations and assumptions
edit For an existing business
income statements
balance sheets and/or
tax returns for past three years
edit Supporting Documents
Personal resumes for all principals
Personal financial statements for all principals
Letters of reference
Letters of intent from prospective suppliers or customers
Copies of all leases, contracts, or agreements, deeds, or other legal documents
Any other information that might help your cause or answer potential questions.

Notes
This material is _base_d upon work supported by the United States Small Business Administration under cooperative agreement number SB-2M-00096-06.