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Business Plan [Company Name]

Presented [Date]

[Company] [123 Main Street] [Anytown, USA 10000] [(890) 123-4567]

{Substitute your Business Name, etc. on this page to create the appropriate Title page for your business plan.}

Table of Contents

I. EXECUTIVE SUMMARY..................................................... II. COMPANY DESCRIPTION................................................ III. INDUSTRY ANALYSIS...................................................... IV. THE TARGET MARKET................................................... V. THE COMPETITION........................................................... VI. Strategic Position and Risk Assessment.........................

VII. MARKETING PLAN & SALES STRATEGY.................... VIII. OPERATIONS................................................................. IX. Technology Plan..............................................................

X. MANAGEMENT & ORGANIZATION................................. XI. COMMUNITY INVOLVEMENT & SOCIAL RESPONSIBILITY................................................................... .................................................................................................. XII. DEVELOPMENT, MILESTONES, & EXIT PLAN............ XIII. FINANCIAL DATA & PROJECTIONS............................ XIV. APPENDIX......................................................................

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I. EXECUTIVE SUMMARY
Concept [Company] management has conducted both primary and secondary research into the [Companys Industry] market and has identified a significantly underserved segment within it. [The Companys] [product/service] is uniquely positioned to serve this segment of the market because of its [characteristic #1], its [characteristic #2], and its [characteristic #3]. Management estimates that the [Underserved segment] of the market will generate $ [market estimate] of sales and that [Company] will capture [market share]% of that market by [Year]. Company description In [Month, Year] [Names of founder(s)] formed a [Product/Service] company that manufactured state-of-the-art [product]. This company was located in [City, State]. The company was formed as a [proprietorship, partnership, corporation]. Others involved in this business are [names]. The company is currently in the [seed, start-up, growth] stage and expects to move rapidly towards further growth and profitability. Mission Statement [Company] is an [innovative, creative, conservative, aggressive] [maker, provider] of [product or service] that offers unparalleled [quality, service, value]. We value [integrity, honesty, creativity, etc] and respect our relationships with each other, our customers, and the world at large. Industry Analysis The [name of industry] industry in [name of appropriate geographic area] generated revenues of $[dollar amount of market] in [most recent full year]. Customers who bought [product/service] made up [percentage of total market in your segment] of that market revenue. [Name of research firm, government agency, or other reputable source] estimates that the [product/service] market will grow to $[amount] within in [number] years (or by [percentage]%). Products & Services [The Company]s main product [service] is [product/service]. The [product/service] is unique in that it [unique feature #1], it is/has [unique feature #2], and it [unique feature #3]. The [product] is customizable and can be configured to meet a wide variety of customer needs: [Bulleted list of needs the product can fulfill] The Company provides its [service] at different levels depending on the needs of its clients: [Bulleted list of service levels]

Target Market [Company]s management recognizes an enormous unmet need in the [product/service] market. [Percentage]% of customers surveyed recently said they were either very likely or likely to purchase [product/service] if it were available. This segment of the market has tremendous potential that has been untapped by any of [Company]s competitors in the industry. It is our primary target audience.
.

Marketing & Sales Strategy [Companys] marketing strategy is to represent its [product, service] as the best and most logical solution to customers [needs, problems]. We are positioning the company as the [low-cost, highest quality, best value] [producer, provider] of [product, service] in the marketplace. The company will use a variety of marketing approaches and materials including [brochures, white papers, trade shows, seminars, {list all or others that apply}]. Sales of the companys [products, services] will be handled by an [internal, external] sales force [or independent agents/reps]. A [telemarketing, direct mail, advertising] firm will be hired to assist with building brand awareness and generating sales leads. Competition [Company] faces competition from [Competitor #1], [Competitor #2], and other smaller firms. These companies specialize in [products/services] and do not provide the same [quality/price/convenience/service] that [Company] does. [Company] distinguishes itself from its competitors through its [Unique Selling Proposition]. Its competitive edge is its ability to provide [product/service] to its customers [more economically/faster/of better quality] than any of its competitors. Management The core management team of [Company] includes several executives with successful backgrounds in the [industry name] industry and experience with startup operations: [CEO name], [CEO age] is President and CEO. His/Her experience includes [# of years] with [prominent company name] where he [state one or two noteworthy achievements: grew sales, cut expenses, launched a new product]. [CFO name], [CFO age] is [Company]s Chief Financial Officer. Mr./Ms. [CFO Name] has held financial positions with [Company #1] and [Company #2] and has also served as a Public Accountant with [name of CPA firm]. His/Her accomplishments include [state one or two noteworthy achievements: grew sales, cut expenses, implemented tax-saving measures]. [CIO name], [CIO age] is [Company]s Chief Information Officer. Mr./Ms. [CIO Name] has extensive experience with innovative technology at [Company #1]

and [Company #2] and also held a consulting position with [name of consulting organization]. His/Her accomplishments include [state one or two noteworthy achievements: managed implementation of new software, launched corporate web site]. Operations [Company] operates from [a facility(ies)] located at [address(es)]. {If applicable} It makes its products at the [location] facility where it [receives components and assembles final products] OR [performs all manufacture and assembly]. Key suppliers are [list suppliers names]. Quality control and distribution to customers are handled by the [location] facility. Financials By achieving its sales targets, [Company] will position itself for exceptional profitability and self-funded growth. The table below is a brief summary of the [Company] Profit and Loss Statement for the years 200X-200X. $000s Sales Gross Profit Operating expenses Pre-tax Income 200X $ x,xxx.x $ x,xxx.x $ x,xxx.x $ x,xxx.x 200X $ x,xxx.x $ x,xxx.x $ x,xxx.x $ x,xxx.x $ $ $ 200X x,xxx.x x,xxx.x

x,xxx.x $ x,xxx.x

All figures are expressed in thousands. Long-Term Goals Expansion plans, financial goals, milestones. Sources & Uses of Funds Management is seeking an investment of [$x,xxx,xxx] in addition to the [$xxx,xxx] already invested by the founders. Proceeds will be used to finance the Companys ongoing start-up expenses, the enhancement of its systems and infrastructure, and the cash shortfall until cash flow breakeven is achieved [list all other significant uses of the funds being sought]. Exit Strategy Given the financial results expressed above, management believes it will be in an excellent position to capitalize on its success through a [Leveraged Buyout, Management buyout, Acquisition by Industry leader, Initial Public Offering, rd Acquisition by other 3 party]. A reasonable valuation for the Company assuming the sales and profitability outlined above would be $xx,xxx,xxx, which would make the shares included in this offering worth $x,xxx,xxx, a return on investment of x%.

[For a loan payback, describe how the company will be in a financial position to repay the loan in the specified timeframe.]

II. Company Description


Mission [Company] is an [innovative, creative, conservative, aggressive] [maker, provider] of [product or service] that offers unparalleled [quality, service, value]. We value [integrity, honesty, creativity, etc] and respect our relationships with each other, our customers, and the world at large. History [Company] is a [State] corporation that was founded in [Month, Year]. During the Companys brief existence, management has spent significant time and effort researching the [industry] industry, particularly the [segment] segment of the industry, developing its business model and products, and lining up potential business partners and affiliates. In [Month, Year], [Company] launched its Web site, www.company.com. The site lists all of the [Company]s locations as well as a complete description of its products and services. The site also provides a secure online order form for its visitors. The company began selling its products and services in [Month/Year]. It [reached, will reach] profitability in [Month/Year]. In [Month/Year], the company acquired [Company name if applicable] a company that [manufactures/sells/services] [product/service]. Since acquisition, the merger has achieved the following: [Positive result #1] [Positive result #2]

Ownership [Company] has issued x,xxx,xxx shares that are distributed as follows: {Add additional rows as needed} Shareholder [Shareholder #1] [Shareholder #2] [Shareholder #3] For future distribution Number of shares xx,xxx xx,xxx xx,xxx xx,xxx

Products/Services [Product/Service #1] [Product/Service #1] is our primary source of revenue. It has the following features: Feature #1 Feature #2 Feature #3 Feature #4 [Product/Service #1] offers customers the following benefits: Benefit #1 Benefit #2 Benefit #3 Benefit #4 [Product/Service #2] [Product/Service #2] is another source of revenue. It has the following features: Feature #1 Feature #2 Feature #3 Feature #4 [Product/Service #2] offers customers the following benefits: Benefit #1 Benefit #2 Benefit #3 Benefit #4 [Product/Service #3] [Product/Service #3] is our third source of revenue. It has the following features: Feature #1 Feature #2 Feature #3 Feature #4 [Product/Service #2] offers customers the following benefits: Benefit #1 Benefit #2 Benefit #3 Benefit #4 Intellectual Property [Company] has secured a patent for {product/service]. The Patent number is [Patent No.]; it is registered with the Office of Trademarks and Patents.

[Trademark #1], [Trademark #2], and [Trademark #3], are all registered trademarks of [Company]. Management has taken the following steps to protect these trademarks: Step #1 Step #2 Step #3

[Company] also owns a number of URLs. These include the following: URL #1 URL #2 URL #3 Future Products/Services [Company] has identified other products/services that it believes will effectively complement its current offerings. These are listed below: Future Product/Service #1 [description of product/service] Future Product/Service #2 [description of product/service] Future Product/Service #3 [description of product/service]

Locations [Company] currently has one office located at [address]. In addition, the company has a [warehouse/distribution center] located at [address]. The companys manufacturing facilities are located at [address]. [Company] also has retail locations at [City], [City], and [City].

III. Industry Analysis


Size and Growth Rate of the Industry According to [industry or government publication], total [industry] industry sales in the United States were $[x] Billion in [Year] and $x Billion in [Year]. This includes [products or services included in figure]. The industry has grown at [x%] for the last [#] years, and is expected to grow [x%] over the next [x] years. There are [number] major segments that make up the [industry] industry: [Segment #1] and [Segment #2][list more if necessary]. For [year], [Segment #1] transactions accounted for $x Billion or [percentage]% of total revenues, while [Segment #2] transactions totaled $x Billion, the other [percentage]% of the total. Maturity of Industry The [industry segment] segment of the industry in which [Company] operates is [new, expanding, stable, declining]. Management believes that there is opportunity in the industry for a company that can [describe traits that will make a new player in the industry successful]. Sensitivity to Economic Cycles & Seasonality Traditionally, the [industry] industry has been [immune to, heavily impacted by] economic trends. The industry [is, is not] seasonal; sales are [consistent throughout the year OR heaviest during the [xst] quarter. Barriers to Entry The costs of [infrastructure, product development, staffing, technology] make it difficult for new companies to establish themselves in the [industry] market. In addition, existing customers have been reluctant to try new [suppliers, providers] because of the time and effort involved in switching allegiances. {Describe any other industry characteristics that make it difficult for a company to enter the industry.} Trends in the Industry The major trend in the [product/service] market is toward [description of trend]. Because of [reason for trend], consumers are more likely to expect [expectation]. [Products/Services] that deliver only [characteristic] will gradually be replaced by those that offer additional features and benefits such as [list of features]. [Use similar wording and format to discuss other trends relevant to your companys market.] Opportunities [Company] is poised to take advantage of the trend toward [trend] through its [product, service]. There is substantial opportunity for growth for a [local, regional, national, international] firm such as [Company] to capture market share and develop a profitable business.

IV. The Target Market


Market Description [Company] operates in the [geographic region] and targets [companies, consumers] that [state relevant characteristics]. Market Size & Trends The population of [geographic area] is [number]. [Census data, or other reputable source] indicate that there are [number] of [Companys] target [businesses, consumers] in the [geographic region area]. Recent studies show that the region is growing by [x%] per year, and analysts predict that future growth will be [x%] per year until [Year]. The area has benefited from the recent addition of [airport, theater, arena, large corporation, or other significant economic addition]. This development is likely to have a positive affect on businesses such as [Company] who sell [product, service]. Demographics st Most of the Companys client base will be made up of [1 Type of Customer] located in the [specify appropriate geographic area]. They will account for [percentage]% of the companys revenue. According to the [Name of credible st source], [1 customer type] typically [insert buying characteristic]. They most often purchase via [store/catalog/online/from reps], but also buy from [other sales outlet]. [Company] projects that [percentage]% of its customers will be [2 Type of nd Customer]. According to the [Name of credible source], [2 customer type] typically [insert buying characteristic]. They most often purchase via [store/catalog/online/from reps], but also buy from [other sales outlet]. The other [percentage]% of [Company]s business will come from [3 Type of rd Customer]. According to the [Name of credible source], [3 customer type] typically [insert buying characteristic]. They most often purchase via [store/catalog/online/from reps], but also buy from [other sales outlet]. Lifestyle and Psychographics {Use this section if customers are individual consumers.} [Companys] target customer is a [married, single, male, female] in the [age range] age group. He/she is [Status-seeking, trend-setting, socially or environmentally conscious, free-spending, conservative, practical, fun-seeking]. Our target customers buying decisions are based on [price, quality, brand name, service, special product features, advertising, packaging, location, store design, ambiance, sanitation].
rd nd

Market Readiness [Company] management has conducted its own research into the target customer base and has developed the following analysis: Buying intention #1 Buying intention #2 Buying intention #3

The research also indicated that the following needs either are not being met or are being met poorly by [products, services] currently available in the market: Need #1 Need #2 Need #3

{Secondary research can also be used to complete the preceding section if it is recent and reputable.} Strategic Opportunities With its [product, service], [Company] is in an excellent position to address and fill the stated needs of customers in its market. Our marketing efforts will focus on positioning the company as the best solution to these needs.

Total Market Share Distribution


Firm Type #5 20% Firm Type #1 20%

V. The Competition
[Company] has performed extensive analysis of its competitors in the [product, service] market in [geographic area]. The following types of firms offer either direct or indirect competition:

Firm Type #4 20%

Firm type #1 Firm type #2 Firm type #3 Firm type #4

Firm Type #2 20%

Management considers only [Firm type #1,2,3, or 4] to be in direct competition with our [products, services]. They offer the only realistic challenge to Firm Type #3 [Companys] share of the market. [Other firm types] do not provide [state the 20% difference between their offering and yours]. Direct Competitors [Number] companies are listed in [local Yellow pages, Yahoo! directory, Chamber of Commerce, or other business listing] under the heading [heading]. Of those, [number] are considered by management to be direct competitors because of [characteristic]. Others are not in direct competition with [Companys] products because of [state reasons]. {Describe other points of similarity or differentiation between the Company and potential competitors.} Indirect Competitors There are a number of other [regional, national, internet] companies that provide [type of product or service], which might be competitors for the wallets of our target customers. They offer [product, service], but are different {or less of a threat} because of [reason]. {Describe other points of similarity or differentiation between the Company and potential indirect competitors.} Market Share Distribution A recent survey conducted by [management or reputable third party] indicates that target customers purchases of [products, services] are distributed among companies as displayed in the chart below. {Right click the chart above to change names and edit figures.} Competitive Advantages [Company] enjoys the following advantages over its competition:

Advantage #1 Advantage #2 Advantage #3 Advantage #4 Advantage #5 Advantage #6 Advantage #7

{Focus only on the competitors who are aiming at the same target market. Include characteristics such as price, credit policies, location, quality, special product features, image, style, perceived value, service (and special service features), customer relations, social image, financial strength, volume purchasing power, marketing and promotional program and budget, operational advantages, strategic partnerships, company morale -- personnel motivation, commitment, and productivity.} Competitive Positions Management considers its main competitors to be the following (ranked in order of strength in the marketplace): Competitor #1 Competitor #2 Competitor #3 Competitor #4 Competitor #5

[Competitor #1] is considered to be the strongest competitor because of [discussion of competitor #1s advantages and strengths]. The specific advantages that [Company] holds over [Competitor #1] are [list the advantages]. [Competitor #2] [discuss competitive advantages as well as our own competitive strengths]. Barriers to Entry Potential entrants into the [industry] market face obstacles such as [describe barriers]. Companies that are likely to successfully capture market share are those that [describe characteristics of potential new entrants]. Future Competition Given the voids that management has identified in [companys] target market, it is entirely likely that existing competitors will develop [products, services] to meet customers needs. It is also conceivable that new firms will perceive market voids and make attempts to capture market share. Management is ready for this

type of healthy activity in the marketplace and plans to continually assess its competitive position and protect its market share.

VI. Strategic Position and Risk Assessment


[Companys] strategy is to position the company as the [premier, leading, major] provider of [product, service] in the [geographic area] market. It will achieve this goal by establishing a market position characterized by the following: Trait #1 Trait #1 Trait #1

{These bullets should identify the strategic ways that the company differentiates itself. Examples include customer perception factors (price, quality, features, customer service, convenience) market segment (if different from competitors), market share, operational or technological advantages of the company, patents or proprietary product design or technology, and sales channel (retail, wholesale, catalog, internet).} Management has established its strategic position after careful evaluation of industry trends, the target market, the competitive environment, the companys strength, and the inherent risks. Industry Trends The major trend in the [product/service] market is toward [description of trend]. Because of [reason for trend], consumers are more likely to expect [expectation]. [Products/Services] that deliver only [characteristic] will gradually be replaced by those that offer additional features and benefits such as [list of features]. {Use similar wording to discuss other trends relevant to your companys market.} Target Market [Companys] target market is the [target market]. This market is characterized by [list key characteristics]. Competitive Environment Although direct competitors such as [list competitors] exist, they do not currently provide [unique product or service]. This enables [Company] to distinguish itself in its customers eyes and differentiate it from the competition. Company Strengths [Company] management are convinced that its [major strength] puts it in a unique position in the market. In addition, our [other important strength] enables us to [action] better than any other firm can. Risks

Perhaps the most significant threat to [Companys] strategy is [describe risk]. A second risk that management foresees is [second risk]. Additionally, [Company] faces the risk posed by [third risk]. {Continue with as many risks as you are able to identify. Examples of risks are market acceptance, customer loyalty to the competition, capital structure of company, unanticipated changes in demographics of the target market, and price threats from larger competitors.} Definition of Strategic Position Managements analysis of the factors just outlined leads us to the conclusion that the biggest threat to our plans is [threat]. It is imperative that we [action] to ensure that the [threat] will not keep us from meeting our objectives. It is the strong belief of [Company] management that [#1 risk], although real, will not keep companies such as ours from succeeding. Our ability to provide [product, service, or attribute thereof] and [other product, service, or attribute thereof] should ensure our competitive position. {Describe any other contingency plans or aspects of the companys strategic position or approach that will enable it to deal effectively with the risks identified in the previous section.}

VII. Marketing Plan & Sales Strategy


[Companys] marketing strategy is to communicate its competitive differences particularly as they relate to the needs of its target customers. Our ability to [competitive advantage] is what sets us apart and all of our marketing efforts and tactics focus on driving this point home. Company Image/Message {Companys] logo, marketing materials, promotions, and sales approach are all coordinated so as to present a clear and consistent message to its customers and potential customers: [Companys] [product, service] is the ideal solution to their need for [need #1], [need #2], and [need #3]. The companys logo, a [describe logo] integrates with its slogan: [company slogan]. This integration leads to a variety of consistent messages throughout our communications with the target customers. For example, [give example of communication]. Sales Program The nature of [Companys] product/service makes the [direct sales, telemarketing, catalog, internet, or other mechanism] the most effective approach. {Discuss the pertinent details of the appropriate sales mechanism. Be sure to mention the organizational structure and a description of who does what internally.} Marketing Vehicles [Company] has used or will use the following marketing vehicles to express its message to its target market: Brochures The company has [developed its own sales literature, or used the services of a marketing/design firm]. These materials are [used by the sales team, sent out as direct mail pieces]. Public Relations Management recognizes the importance of creating a buzz about its offerings, and has retained the services of [PR firm] to handle its public relations. The firm has extensive experience in the [industry] industry and has helped [Company] get favorable press coverage in [Publication #1], [Publication #2], and [Publication #3]. In addition, [Company officer] has agreed to sponsor the [charity/community/educational] program. This program is an excellent vehicle for building the companys brand awareness as well as the public perception of the company.

Advertising To support its promotion efforts, [Company] is working with the [Ad Agency name] advertising agency. Management is spending its advertising budget primarily in [consumer/business/trade] [magazines/newspapers/other publications] that cater to its target customers. Ads will be run strategically to support and maximize the impact of the positive editorial that is garnered in the publications mentioned above. Customer Loyalty Management believes that in todays marketplace the most successful companies are those that provide excellent service to their customers. [Company] is committed to total customer satisfaction and recognizes it has an opportunity to separate itself from the rest of the pack by servicing its customers better than anyone else. Management has already put into place loyalty programs that will reward its customers for their business. The program [describe main features of program]. Management believes that these types of programs serve to not only reward its customers, but also to build the companys credibility in the marketplace. Trade Shows Management has realized significant sales and sales leads through its participation in trade shows. It has attended [list relevant shows] and intends to follow up its success there by establishing booths at [list relevant trade show(s)]. Strategic Partnerships In [month, year], management agreed to a marketing alliance with [name of firm]. [Name of firm], a leading [producer, provider] of [product, service] has a similar customer target as [Company] albeit for different products. This common customer target has made for an excellent opportunity for joint promotions and activities. Further events are in the planning phase. Sales Forecast Management projects that [Company] will achieve direct sales of [number] units and $[number] of revenue in [Year]. These figures will grow to [number of units] and $[number] in [Year 2] and [number of units] and $[number] in [Year 3]. The Table below indicates [Company]s other sales sources and projected revenues from each.

Sales Source Direct Sales Catalog Sales Internet Sales Other #1 Sales $ $ $ $

200X . . . . $ $ $ $

200X . . . . $ $ $ $

200X . . . . $ $ $ $

200X . . . . $ $ $ $

200X . . . .

Other #2 Sales Total Revenue

$ . $ .

$ . $ .

$ . $ .

$ . $.

$ . $.

All figures are expressed in $000s.

VIII. Operations
{Here is where you explain the day-to-day functions of your business. Focus on the aspects of operations that are more important to the overall success, provide a competitive edge, or are innovative. Delete the sections below that are not relevant or are not critical to your companys success.} A key to the success of [Company] is the [supplier network, production process, order fulfillment system, design lab, consulting organization, or any other operational advantage the Company possesses]. Our ability to effectively manage this aspect of our business enables us to [keep costs down, provide superior service or quality, bring products to market more quickly than competitors, or other competitive advantage]. Facilities [Company] operates its business from [number] locations. Its headquarters are located at [address] and comprise [number] square feet of office space. The headquarters includes the senior management of the company, and all sales and administrative functions including [use all that apply: Marketing, Advertising, Research and Development, Finance and Accounting, and Customer Service]. The companys warehouse is located at [address] and includes [number] square feet. The facility is leased from [lessor] for a total cost of $[amount] monthly, which is $[amount] per square foot. OR {The company owns the facility and is paying a $[mortgage] at a rate of [rate] % for a monthly payment of $[amount].} [Company] also operates a manufacturing facility at [location]. The facility is leased from [lessor] for a total cost of $[amount] monthly, which is $[amount] per square foot. OR {The company owns the facility and is paying a $[mortgage] at a rate of [rate] % for a monthly payment of $[amount].} [Company] produces all of its products here and management believes that it will be able to achieve the sales goals outlined in this plan without any additional manufacturing capabilities. Equipment [Company] currently [owns/leases] the following equipment: General Office [equipment] [equipment] [equipment] Warehouse [equipment] [equipment] [equipment]

Manufacturing [equipment] [equipment] [equipment] Production [Companys] products are [assembled in our own factory, assembled by factories with whom we have contracts]. [Company] [purchases components from third parties, produces components] which are then shipped to [our, the third party] facility for final assembly. Quality control is handled by [Company or contract factory]. Factories are currently working at [x%] of capacity. To achieve the sales forecast in this plan will require [additional staffing, a larger facility, no increase in staffing or production space]. {Add additional pertinent information about the supply chain or production process.} Inventory Control [Company] management is committed to an efficient supply chain. The current lead time from production order to finished product is [#] weeks. This compares favorably with the industry standard of [#] weeks. We have implemented the [name of technology] system to manage our supply chain and are always analyzing processes to improve lead times. This enables us to keep our inventories at the lowest possible levels. Supply & Distribution Finished goods are held in inventory at our [distribution center, warehouse]. It is this location that handles order fulfillment and ships products to our customers. Because of our ability to manage the supply chain, we have been able to turn over our inventory an average of [#] times per year. [Company] has implemented the [name of system] distribution system, which enables us to ship orders efficiently. Our contract with [UPS, FedEx, other shipping company provides for reduced shipping fees that we are able to pass on to our customers. Customer Service The [distribution center, warehouse] includes a Customer Service department that receives and processes orders, assists with expediting major orders, and provides support to customers in changing and tracking orders and returns. The department is staffed [24/7, during normal business hours]. Research & Development

Management is committed to the ongoing development of new products and services that will ensure our competitive position and continued growth. To that end, research and development is conducted by [key management, engineering, a dedicated R&D department]. An example of the effectiveness of this process is the [product], which was conceived internally and is now in production. Other Operational Issues Management has experienced difficulties in the past with [operational challenge]. To date it has corrected this problem by [methods used to correct problem]. Other potential problems that we foresee include [state potential problems]. We anticipate that we will be able to work through such difficulties by [describe contingency plans].

IX.

Technology Plan

Technology and effective systems are crucial to successful modern companies. Management of the companys information systems is handled [internally, by an outside consulting firm]. This arrangement provides [Company] with the flexibility to continually monitor its systems and upgrade when business requirements dictate. The company presently uses the following systems: [Accounting and finance] [Data warehouse] [Inventory management] [Graphic design] [CAD/CAM] [Point-of-sale]

Internet [Company] owns a web site, www.companyname.com , where it [provides information about its products/services, accepts orders, hosts an online catalog, other web site uses]. The hosting of the site is handled [internally, by third party hosting company name]. Hardware Needs The company currently [owns, leases] [#] desktop PC systems and [#} laptop computers. In addition, it [owns, leases] [#] network servers used for our internal information processing. {List any other hardware or hardware needs addressed by the funding from this plan.} Software Needs In addition to the systems already used by [Company], management foresees the need for [type of system]. Such a system will enhance our ability to [compete, cut costs, manage finances, design products, etc.]. Telecommunications Needs {Company] currently uses a [type of system] phone system. Although adequate for our present needs, our projected growth will spur the need for increased capacity and, in all likelihood, a new system. Management projects that it will upgrade to a larger system in [date]. The company also [has, needs] a [private network, virtual private network] that will [state benefit of network].

X. Management & Organization


If you are using this plan to help raise money, be aware that many investors will give this section high priority and read it very carefully. It is a common belief that the people (experience, skills, personalities) are more important than the product in determining success.

Management Team
[Company] has a capable and experienced management team. [CEO name], [CEO age], is President and CEO. His/Her experience includes [# of years] with [prominent company name] where he/she [state one or two noteworthy achievements: grew sales, cut expenses, launched a new product]. Prior to [company name] he/she held the position of [title] at [other company]. There he was responsible for [duties] and oversaw the [high profile project or achievement]. He/She has a bachelors degree from [college or university] and a [advanced degree] from [university]. [CFO name], [CFO age] is [Company]s Chief Financial Officer. Mr./Ms. [CFO Name] has held financial positions with [Company #1] and [Company #2] and has also served as a Public Accountant with [name of CPA firm]. His/Her accomplishments include [state one or two noteworthy achievements: grew sales, cut expenses, implemented tax-saving measures]. He/She has a bachelors degree from [college or university] and a [advanced degree] from [university]. [CIO name], [CIO age] is [Company]s Chief Information Officer. Mr./Ms. [CIO Name] has extensive experience with innovative technology at [Company #1] and [Company #2] and also held a consulting position with [name of consulting organization]. His/Her accomplishments include [state one or two noteworthy achievements: managed implementation of new software, launched corporate web site]. He/She has a bachelors degree from [college or university] and a [advanced degree] from [university]. {List other relevant officers with their education and achievements in a similar format here.}

Future Management Considerations


In addition to its present leadership, [Company] recognizes that it will need other executives to round out its management team. Specifically, it will be necessary to look outside the company for a [title] of [area of responsibility where gap exists]. By bringing in a seasoned executive with relevant industry experience, [Company] will be in a better position to achieve its objectives.

{Similar paragraphs can be added here if other management needs exist.}

Staffing
[Company] currently runs its business with a staff of [number of employees] full time and [number of employees] part-time employees. Each is responsible for a different function, although management has created a system of crossfunctional training that will keep its business running smoothly despite illness, attrition, or turnover. The staff is organized along for the following functional framework: Sales Responsible for [list responsibilities].

Administration

Responsible for [list responsibilities].

Operations

Responsible for [list responsibilities].

Customer Service

Responsible for [list responsibilities].

[Add other functional areas and responsibilities as needed.] Board of Directors The following individuals make up the [Company] Board of Directors: [Name, Title] Chairman of the Board [Name, Title] Director [Name, Title] Director [Name, Title] Director [Name, Title] Director [Name, Title] Director

Advisory Board Management has also assembled an advisory board to compliment the strengths of the management team. The companys advisers are: [Name, Title] [Name, Title] [Name, Title] [Name, Title]

y p e n a m T ey p h e e nr e a m T ey p h e e nr e a m e h e r e T y p Consultants,y Professionals,T andep other tSpecialists r e e t i t l e T h ep r e e t i t l e hy re e it le h e

[Name, Title] [Name, Title]

y p e y p e

a m t it le

e h

h e r e e r e

[Consultant/Professionals Name, specialty] {Describe the consultants relationship and work with the company.} [Consultant/Professionals Name, specialty] {Describe the consultants relationship and work with the company.} Organization Chart

{Right-click on org. chart, move cursor to MS Org Chart Object, and click Edit to make changes to the chart.}

XI. Community Involvement & Social Responsibility


Social Responsibility Goals {Read about Ben & Jerrys Ice Cream and see if they inspire you for this section.} Company Philosophy Recognizing the importance of the companys relationship not only to the marketplace, but also to the community at large, [Company] has outlined the following philosophy: Point 1 Point 2 Point 3 Point 4 Point 5 Point 6 Point 7

Community Activities In [month, year], [Company] employees volunteered their time to [worthy cause]. This [charity, organization] is involved with [involvement]. As a result of our efforts, the organization was able to [state accomplishment]. The program was win-win: Employees gained great satisfaction from being able to help others in the community, the company received favorable press coverage from [media organization], and the [charitable organization [state benefit].

XII. Development, Milestones, & Exit Plan


{What is your ultimate destination? And what will your business look like at different intervals along the way? This section should tell investors how much money they can make and when and how they can get it.} Goals [Company] managements vision includes the continued development of [Companys] concept and the establishment of the company as a [Lifestyle provider, innovator, quality provider, growth company, and niche leader in the [industry] industry. [Number] years from now, we expect to have [state one or more goals to have accomplished at that time]. Strategies {Discuss strategies that the company will implement to achieve the goals outlined above. Explain priorities especially in terms of strategies for which significant expenditure is required.} Milestones Status/Date Hire [CEO/CFO/CMO/COO] [Open store/launch web site/begin construction] First dollar revenue Other milestone] [Other milestone] Achieve profitability Cash flow breakeven [Other milestone] [Other milestone] [Status/Completion date] [Status/Completion date] [Status/Completion date] [Status/Completion date] [Status/Completion date] [Status/Completion date] [Status/Completion date] [Status/Completion date] [Status/Completion date]

Risk Evaluation Although management is convinced that [Company] will succeed and provide an outstanding return for its investors, there are inherent risks in its plan:

Risk #1 Risk #2 Risk #3 Risk #4

{Include such risk considerations as market acceptance, changing demographics, new competition, new customer tastes, management performance, operating costs, regulatory and licensing issues.} Exit Plan [Company] management is projecting that it will have a highly profitable business with a relatively small expense and asset base. Its forecast of $[dollar amount] of pretax income in its third year of operation is evidence of this belief. Although [Company]s books are maintained by an independent, certified public accountant and the company is positioning itself for an initial public offering, its remarkably low overhead and capital needs make early acquisition a more probable scenario. Management believes that large, established companies in the [industry name] industry will find [Company] to be an attractive acquisition target because of its [characteristic #1] and its [characteristic #2]. {Alternatively, discuss another exit option such as sale to individual(s), stockholder or employee buyout, franchise, hand down to family member(s), or close.}

XIII. Financial Data & Projections


{All the decisions you have made in the previous sections have financial outcomes. These numbers must be gathered, sorted and reported so that you can assess your present position, current progress and make new decisions about the future. For startup ventures, a good set of projected financial statements can be a great tool for making many important choices. It is perhaps the best ( if not the most realistic) way to see into the future.} Financial Assumptions In assembling the [Company] financial plan, management made a number of important assumptions: [Assumption 1] [Assumption 2] [Assumption 3] [Assumption 4]

Capital Requirements [Company] management has determined that it requires $x,xxx,xxx of capital to implement its strategy as defined in this plan. The Table below indicates the Sources and Uses of the required capital. [Note: Total Sources number and Total Uses number should agree.] Sources Owners Investment Proceeds from this offering Total Sources Uses Development Cost Marketing and Advertising Salaries Rent and Equipment Total Uses {Guidelines: Consult your accountant and your attorney. Be conservative and honest Use standard industry forms and formats} Forms to include: $ xxx,xxx $ xxx,xxx $ xxx,xxx $ xxx,xxx $ x,xxx,xxx Amount $ xxx,xxx $ x,xxx,xxx $ x,xxx,xxx

Income Statement Cash Flow Balance Sheet Break-Even Analysis Plan Assumptions Uses of Funds Optional: Sources of Capital & Debt Service Detail of Expenses Worksheets Amortization and Depreciation Schedule

Note: The following three pages of financial statements are linked directly to the PlanigentFinancials Pro 2.0 Excel file that came with your Template Pro package. If you want to link to another version of the PlanigentFinancials Pro 2.0.xls file, you can do so in one of two ways: If you have not already changed the name of PlanigentFinancials Pro 2.0.xls, Open the PlanigentFinancials Pro 2.0.xls file while this Word document is open and save it with a new name.

If you have already resaved the PlanigentFinancials Pro 2.0.xls with a new name, In this Word file, click Edit from the Toolbar and then click Links. The Links dialogue box will open. Select all three files listed in the dialogue box by clicking on the topmost file and then pressing and holding the "Shift" key while clicking on the third file in the list. All three files should be highlighted. Click Change Source and navigate to the Financials file that you have previously renamed. You can change the source of the files one at a time if you prefer.

[Company] Projected Income Statement Year 1-5 (in thousands)

Year 1 Sales Cost of Goods Sold Gross Profit Salaries/Officers Salaries/Staff Benefits Payroll Taxes Insurance Trade shows/Advertising Depreciation Miscellaneous Postage/Delivery Printing Professional Fees Rent/Utilities Supplies Telephone Travel & Ent Research and Development Other Total Operating Exp Total Operating Profit (EBIT) Other Income / (Exp) Interest Income / (Exp) Total Oth Inc/Exp Net Income Before Tax (EBT) Tax Net Income Retained Earnings Dividends -

Year 2 -

Year 3 -

Year 4 -

Year 5 -

[Company] Annual Statement of Cash Flow Years 1-5 (in thousands) Year 1 Cash and cash equivalents, beginning of period Cash flow from operations: Net income Additions (sources of cash): Depreciation Increase in accounts payable Increase in accrued income taxes Subtractions (uses of cash): Increase in accounts receivable Increase in inventory Net cash flow from operations Cash flow from investing activities Leasehold improvements/F&F Equipment Net cash (used for) investing activities Cash flows provided by (used for) financing activities: Increase (decrease) in short-term debt, net Capital infusion Additions to long-term debt Retirement of long-term debt Net cash (used for) financing activities Cash Distributions to Shareholders Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, end of period Year 2 Year 3 Year 4 Year 5 -

[Company] Annual Balance Sheet Year 1 - 5

Year 1 Assets Current assets: Cash and cash equivalents Accounts receivable Inventories Prepaid expenses Total current assets Fixed Assets Furniture and Fixtures Leasehold Improvements Construction in progress Less accumulated depreciation Furniture, Fixtures, Fleet, Net Other assets Total assets Liabilities and stockholders' equity Current liabilities: Short-term debt Accounts payable Other accrued liabilities Income taxes payable Total current liabilities Long-term liabilities Long-term debt Deferred tax liabilities Total Liabilities Stockholders' equity: Retained earnings Total stockholders' equity Total liabilities and stockholders' equity

Year 2

Year 3

Year 4

Yea

XIV. Appendix
The appendix is the place for supporting documents and information. The items in the appendix should only confirm, reinforce or elaborate on the major ideas and facts already stated in the main plan. Many people dont even read the appendix so include all essential items in the plan itself. If the appendix seems too long, put it in a separate binder. Appendix Items Resumes and financial statements of key people Lease and other location information (pictures) Marketing information (logo, dummy ads, packaging) Supporting media information (newspaper articles, etc.) Budgets & schedules & analysis (equipment lists, project charts, flow chart) Design or construction information (floor plan, renderings) Contracts, trademarks Bank loans, financial statements Market research studies (bibliography)