I.    THE COMPANY

A.  About the Company

1.       Full Legal Name of the Company

2.      Are you a sole proprietorship, partnership, corporation, Subchapter-S Corporation, Limited Liability Partnership, Limited Liability Company?

3.       Date Formed or Incorporated

4.       Names of Partners/Principal Stockholders with ownership percentages

5.       Are you a manufacturer, a service company, retailer, wholesaler, contractor, etc?

B.  About the Business Concept

1.       Describe your business or business concept, including how did the concept came about

2.       Mission Statement – a statement describing the purpose of your company

3.       Company Goals/Objectives – Describe short and long term goals/objectives for your company. Be as specific as possible.

C.  Company Objectives

1.       What do you hope to accomplish in the first year of operations?

2.       What do you hope to accomplish in the second year of operations?

3.       What do you hope to accomplish in the third year of operations?

4.       What do you hope to accomplish in the fourth year of operations?

5.       What do you hope to accomplish in the fifth year of operations?

D.  Management and Personnel

6.       List all the job titles (starting with key management/owners including yourself), names of persons who will fill these positions, and explain the business functions for each position?  Specify if the position will be paid salary, wages or commission and state the salary, pay rate, or commission.  If you plan to hire any additional personnel in the future, list when they will be hired, their position/titles and responsibilities, and what their salary/wages will be.

E.  About the Products/ Services

1.       Explain your company’s products/services in detail.  Include a description of each of your products/services, along with the prices you will charge

II.    INDUSTRY ANALYSIS

A.  About the Industry in General

1.    Industry Description – What industry are you in?

2.    Seasonal Factors – What specific times of the year are the busiest for this industry? When is the slow season? What causes theses seasonal factors?

3.    Regulatory Issues – Are there any laws or rules/ regulations specific to your industry? (for example: requirement for food preparation license if you prepare food)

4.    Do you have your business license? If not, when do you plan to acquire your business license?

B.  Supply and Distribution

1. What companies provide the supplies that you will need to run your business?

III.    THE MARKET

A.  Market Opportunity

1.    Why would anybody want to buy your product/services? For example, is it better quality, cheaper, etc

2.    How big of a market have you identified?

3.    On what do you base the above mentioned number?

B.  Target Market

4.     Who would you say is your primary target market?

5.     Describe this target market (ex. age group, household income, geographic location, etc.).

C.  Purchasing Patterns

1.    What are your customers buying habits?

2.    Why do they buy these products/services; when do they make  purchases of these products/services; which products/services do they prefer most; and where do they buy these products/services?

IV.    COMPETITION

A.  Competitors

1.      List your company’s main competitors

2.      What products/services do these competitors offer and at what prices?

B.  Competitive Position

3.       How are your products/services better than or different from those of the competitors?

4.       Why will customers choose you over the competitors?

V.    MARKETING AND SALES PLAN

A.  Marketing Tools

1.      What advertising or promotions activities does your company currently do or plan to do?

2.     How much each activity costs to you?

B.  Sales Projections

For an Existing Business

1.     On average, how many units of each of your products or services do you sell each month?

2.     To whom and at what prices?

For a Start-up Business

1.    On average, how many units of your products or services do you expect to sell each month?

2.    To whom and at what prices?

3.    How did you come up with these sales projections?

C.  Strategic Alliance/Partnerships

1.     Explain any partnerships or strategic alliances that your company has developed or hopes to develop in order to increase sales.

2.    Explain any partnerships or strategic alliances that your company has developed or hopes to develop in order to increase sales.

VI.    OPERATIONS

A.  Location/Facilities

1.     Where is the business located?

2.     Do you have a lease/rental?

3.     What are the terms of the lease/rental?

4.     Prepare  a copy of the lease/rental agreement to include with your business plan.

B.      Supply and Distribution

5.      Where will you buy your supplies from?

6.      How will you distribute your products/services?

7.      Do you sell wholesale or directly to customers?

C.  Future Growth Expectations

1.      Do you expect to expand your company in the future (ex. offer new products/services, hire more personnel, expand to other geographical locations, etc.)?

2.      If yes, explain in detail.

3.      What new products will be offered?

4.      What additional personnel will be hired?

5.      What geographical locations will you expand to?

6.      When will you do this – in what year?

VII.    FINANCIALS

A.  Loan

1.      Indicate the loan amount you plan to borrow.

B.  Start Up and/or Expansion Costs

1.      What are your estimated start up/expansion costs?  Include a detailed breakdown of all items with costs (ex. business registration, telephone hook up, office equipment – computers, fax, file cabinets, furniture, other equipment, repairs and maintenance, supplies, licenses and insurance, advertising and promotion, accounting and legal, salaries).  State whether these costs are one time costs, monthly, yearly, etc.  For expensive equipment, state the number of years the equipment is expected to last.

2.      For a Start-up Business: Indicate the cash on-hand when you begin the business (ex. what personal funds will you or your business associates put up for the business)?

3.      For Existing Business: Indicate how much cash was available in the business last month.

4.      What exactly do you plan to use this loan for?  What items mentioned in the start up costs will this cover?

C.  For existing businesses

1.      List price of each product/service. Provide previous monthly sales numbers (how many units sold) for each product/service

D.  Assumptions- List all assumptions made in determining financials

1.      Cost of Goods Sold – provide a detailed breakdown of the costs for each product/service.

2.      List all Operating Expenses and how often will each operating cost be incurred – monthly, yearly, every 6 months, etc.?  For example: rent, advertising, etc.

3.      Depreciation:  List all equipment purchased or currently owned by the company and state when purchased, the cost, and their expected life.

4.      Accounts Payable: when will you have to pay for supplies – as they are purchased, on credit due 30 days later, half up front – half later, etc.?

5.      Accounts Receivable: how will you let your customers pay for your products/services – by cash only, credit cards, etc.  Also, when will you collect payments from customers – as they are purchased, 30 days out, half at the time of purchase – half later, etc.?

6.      Owner’s Withdrawal – how much money, if any, do you expect to be able to withdraw each month for personal use (separate from any salary you will pay yourself)?

Summary: In addition to the above information, you  may need the following if applicable:

1.      3 years of past tax returns, income statements, and balance sheets.

2.      Resumes of owner and other managers or key employees.

3.      Professional references or letters of support.

4.      Pictures of products.

5.      Pertinent published information.

6.      Magazine articles.

7.      Copies of your business license, articles of incorporation, and other business documentation.

8.      Copies of lease agreement for the business location.

Related posts:

1. Marketing Plan – Part II: Target Market & Objectives
2. Marketing Plan – Part III -The Marketing Mix