New version page

Business plan for Startups

This preview shows page 1-2-21-22 out of 22 pages.

View Full Document
View Full Document

End of preview. Want to read all 22 pages?

Upload your study docs or become a GradeBuddy member to access this document.

View Full Document
Unformatted text preview:

Business Plan for Startup BusinessThe business plan consists of a narrative and several financial spreadsheets.The narra-tive template is the body of the business plan. It contains over 150 questions divided intoseveral sections.Work through the sections in any order you like, except for the ExecutiveSummary which should be done last. Skip any questions that do not apply to your type ofbusiness.When you are through writing your first draft, you will have a collection of smallessays on the various topics of the business plan.Then you will want to edit them into asmooth flowing narrative.The real value of doing a business plan is not having the finished product in hand;rather, the value lies in the process of research and thinking about your business in a sys-tematic way.The act of planning helps you to think things through thoroughly, study andresearch when you are not sure of the facts, and look at your ideas critically. It takes timenow, but avoids costly, perhaps disastrous, mistakes later.This business plan is a generic model suitable for all types of businesses. However, youshould modify it to suit your particular circumstances. Before you begin, review the sec-tion entitled Refining the Plan, found at the end of the narrative. It suggests emphasizingcertain areas depending upon your type of business (manufacturing, retail, service, etc.). Italso has tips for fine tuning your plan to make an effective presentation to investors orbankers. If this is why you are writing your plan, then pay particular attention to your writ-ing style.You will be judged by the quality and appearance of your work as well as yourideas. For your guidance, we have included a document entitled Writing Guide.This is anexample of an executive summary written in a clear and concise style suitable for this typeof document.It typically takes several weeks to complete a good plan. Most of that time isspent in research and re-thinking your ideas and assumptions. But then, that is the value ofthe process. So make time to do the job properly.Those who do, never regret the effort.And finally, be sure to keep detailed notes on your sources of information and the assump-tions underlying your financial data.Business PlanOWNERSBusiness name: Example Corporation Address: Address Line 1Address Line 2City, ST 22222Telephone: 222-333-4444Fax: 111-222-3333Email: [email protected] of contentsI. Table of contents 3II. Executive summary 3III. General Company Description 3IV. Products and services 3V. Marketing plan 3VI. Operational Plan 3VII. Management and organization 3VIII. Personal financial statement 3IX. Startup Expenses and Capitalization 3X. Financial plan 3XI. Appendices 3XII. Refining the Plan 3Executive summaryWrite this section last! We suggest you make it 2 pages or less.Include everything that you would cover in a 5-minute interview.Explain the fundamentals of the proposed business: what will your product be, who willbe your customers, who are the owners, what do you think the future holds for your busi-ness and your industry? Make it enthusiastic, professional, complete and concise.If applying for a loan, state clearly how much you want, precisely how you are going touse it, and how the money will make your business more profitable, thereby ensuringrepayment.General Company DescriptionWhat business will you be in? What will you do?Mission Statement: Many companies have a brief mission statement, usually in thirty wordsor less, explaining their reason for being and their guiding principles. If you want to draft amission statement, this is a good place to put it in the plan. Followed by:Company goals and objectives: Goals are destinations — where you want your business tobe. Objectives are progress markers along the way to goal achievement. For example, agoal might be to have a healthy, successful company that is a leader in customer serviceand has a loyal customer following. Objectives might be annual sales targets and some spe-cific measures of customer satisfaction.Business philosophy:What is important to you in business?To whom will you market your products? Your target market? (State it briefly here - youwill do a more thorough explanation in the Marketing section).Describe your industry. Is it a growth industry? What changes do you foresee in your indus-try, short term and long term? How will your company be poised to take advantage ofthem?Your most important company strengths and core competencies:What factors will make the company succeed? What do you think your major competitive strengths will be?What background experience, skills, and strengths do you personally bring to this newventure?Legal form of ownership: Sole Proprietor, Partnership, Corporation, Limited LiabilityCorporation (LLC)? Why have you selected this form?Products and servicesDescribe in depth your products and/or services (technical specifications, drawings, pho-tos, sales brochures, and other bulky items belong in the Appendix).What factors will give you competitive advantages or disadvantages? For example, level ofquality or unique or proprietary features.What are the pricing, fee or leasing structures of your products and/or services?Marketing planNotes on preparation:Market research - Why?No matter how good your product and your service, the venture cannot succeed with-out effective marketing.And this begins with careful, systematic research. It is very danger-ous to simply assume that you already know about your intended market.You need to domarket research to make sure they are on track. Use the business planning process as youropportunity to uncover data and question your marketing efforts.Your time will be wellspent.Market research - How?There are 2 kinds of market research: primary and secondary.Secondary research means using published information such as industry profiles, tradejournals, newspapers, magazines, census data, and demographic profiles.This type of infor-mation is available in public libraries, industry associations, chambers of commerce, ven-dors who sell to your industry, government agencies (Commerce Dept. and state and localdevelopment agencies), and the SBA Business Information Centers and One Stop CapitalShops.Start with your local library. Most librarians are pleased to guide you through their busi-ness data collection.You will be amazed at what is there.There are more online sourcesthan you could possibly use.A good way to start is at the SBA site,


Loading Unlocking...
Login

Join to view Business plan for Startups and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view Business plan for Startups and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?