BUSINESS PLAN TEMPLATE
BUSINESS PLAN
[My Company]
123 Main Street
Anytown USA 10000
1234567
[Your Name]
[DATE]
TABLE OF CONTENTS
Executive Summary 1
Management 2
[Company] History 6
[ProductService] Description 8
Objectives 10
Competitors 11
Competitive Advantages 12
Innovation 14
Pricing 15
Specific Markets 16
Growth Strategy 17
Market Size and Share 18
Targeting New Markets 19
Location 20
Manufacturing Plan 21
Research & Development 22
Historical Financial Data 23
Proforma Financial Data 24
Proforma Balance Sheet 27
Cost Control 28
Effects of Loan or Investment 29
Attachments 30
Executive Summary
[My Company] was formed as a [proprietorship partnership corporation] in [Month Year] in [City State] by [John Doe] in response to the following market conditions
[Startup growth] opportunities exist in [ProductService]
The need for use of efficient distribution and financial methods in these overlooked markets
[IWe] have several customers who are willing to place large [orderscontracts] within the next three months
Several other prospective [customersclients] have expressed serious interest in doing business within six months
[IWe] previously owned a company that was active in the widget markets Over the past few years I spent much time studying ways to improve overall performance and increase profits This plan is a result of that study
The basic components of this plan are
1 Competitive pricing
2 Expand the markets
3 Increased advertising
4 Lower our unit costs
5 Thereby achieving higher profits
1 Sign contracts
2 Increased advertising
3 Increase office staff
To this end [Iwe] need investment from private individuals andor companies A total of XXX is being raised which will be used to finance working capital plant and equipment The company will be incorporated and common stock issued to investors The company will be run as a [proprietorship partnership corporation]
Financial Goals
Year 1
Year 2
Year 3
Sales
1000000
1400000
1600000
Net Income
25000
250000
375000
Earnings per share
01
12
14
Management
[Name]
[Title] [Experience] Sales growth from zero to 1000000 in five years Led market in market share 30
Formulated advertising budgets & campaigns
Pioneered new distribution channels
Established national sales force
Established national repair & service centers
Brought new and innovative products to the market
Designed pointofpurchase materials
[Education}
University of Boston
Boston MA
BA Computer Sciences
Short Biographies
President
John Q Doe Chief Executive Officer and Director since February 1988 and President since January 1990 Mr Doe was the founder and Chief Executive Officer of the original operating company known as Random Excess Inc He has had experience in the widget field with his own firm John Doe Co of Oshkosh (Wisconsin) from 1980 to 1987 This firm was sold to FatCat Widgets Inc in 1987 Mr Doe has held a sales position with U S West Inc since then Mr Doe graduated from the University of Colorado in 1981 with a bachelor’s degree in philosophy Mr Doe is employed by the Company on a fulltime basis
Chief Financial Officer
Richard Roe CPA Chief Financial Officer Treasurer and Director Mr Roe joined Random Excess Inc in December 1988 as a corporate controller and was named Chief Financial Officer in July 1989 Mr Roe was appointed Treasurer and a Director in July 1990 He served as corporate controller of XYZ Lumber Company from August 1981 to December 1988 Mr Roe graduated from Metropolitan State College in Denver Colorado in 1976 with a bachelor’s degree in accounting Since 1979 he has been licensed as a Certified Public Accountant in the State of Colorado and is a member of the American Institute of Certified Public Accountants Mr Roe is employed by the Company on a fulltime basis
Vice President
Joe Dokes Secretary Executive Vice President and Director Mr Dokes supervises the company’s sales and implementations to its largest corporate customers including US West Great West Life Insurance etc Mr Dokes has served as Secretary and a Director since February 1988 Vice President of Operations from February 1988 to December 1988 President of the Company from December 1988 to January 1990 and Vice President of Contract Sales since January 1990 He has been involved since 1986 with the private company originally formed as Random Excess Inc where his duties included managing the purchasing and sales department From November 1984 to May 1986 he managed the sales department at Integrated Management Systems Inc From June 1983 to October 1984 he was a buyer for Adams County Colorado School District 50 Mr Dokes attended Oklahoma State University in 1980 and 1981 and Trinidad State College in Trinidad Colorado in 1981 and 1982 He did not receive a degree from either university Mr Dokes is employed by the Company on a fulltime basis
Vice President
Sally Seaugh Vice President of Marketing Ms Seaugh has been the Company’s Vice President of Marketing since November 1988 From September 1986 to October 1988 she was involved in business development and marketing for United Bank of Aurora (Colorado) From February 1980 to August 1986 she was selfemployed as an independent oil and gas landman Ms Seaugh graduated from the University of Denver in 1974 with a bachelor’s degree in Education She is employed by the Company on a fulltime basis
Responsibilities
John Q Doe Chief Executive Officer Responsible for entire operation Oversees management function and all other executives
Salary 60000
Richard Roe CPA Chief Financial Officer Responsible for financial operations accounts payable accounts receivable interaction with auditors investor relations Salary 40000
Joe Dokes Executive Vice President Responsible primarily for sales and sales support
Salary 35000
Sally Seaugh Vice President of Marketing Responsible for marketing human resources and training
Salary 30000
Total Executive Compensation 165000
[This Page is for an Organization Chart if applicable]
[Company] History
In [Month Year] [Iwe] formed a [ProductService] company that manufactured startoftheart complex widgetry This company was located in [City State] [Iwe] formed this company as a [proprietorship partnership corporation] Others involved in this business were [names]
The main goal of this company was to [explain]
Financing was arranged through [home equity loans savings venture capital friends and family etc] [Explain terms rates and ability to repay]
This venture was very successful in generating and increasing sales but was not effective in achieving profitability The main reason for this was the amount of actual overhead experienced This overhead was not initially anticipated by me at the beginning of that venture Items including credit checking warranty program management extensive travel maintaining warehouse stock and the management and expense of a national sales force were expenses not originally forecast or expected With this level of overhead it was mathematically impossible to achieve profitability
or
This venture was very successful in generating and increasing sales as well as effective in achieving profitability This was due to the following reasons
[Reason 1}
[Reason 2]
[Reason 3]
OR
[My Company] was recently conceived and is still in the beginning stages To this point the following has been accomplished
§ A team consisting of [list names and primary responsibility (ie John Doe Marketing) has been formed
§ A prospective [customerclient] list has been drawn up
§ Strategy meetings are being held every Monday Wednesday and Friday evenings
§ This business plan has been drawn up
[Now link the past to the future why a former company will lead into this one or how your present company and history will lead into any future plans A short paragraph should suffice]
We are now able to adequately address the markets we have targeted We have adjusted our staff redirected our advertising and sales force and have added the products necessary to meet the needs and expectations of our customers
[ProductService] Description
[My Company] intends to offer [productservice] This [productservice] offers our customers the best possible solution as it
§ Offers the lowest price on the market
§ Is the most technically advanced
§ Offers more useful features
§ Saves them time and money
§ Offers our users better value per dollar spent
§ Provides an alternative way to achieve a similar task
§ Provides a service which is not presently available in this area
§ Is strengthened by a team with combined experience of XX years
§ Saves them time and money
§ Provides an alternative cost effective way for them to realize a similar goal
We have a [copyright service mark trademark] or [exclusive agency marketing rights] for this [productservice] This agency will last until XXX at which time it may be extended for XX years or terminated This agency agreement is cancelable upon XX days written notice
The [productservice] has a useful life of XX years To distribute this product so that it remains usable for our customers we must use the following methods of storage and transportation
1 Overnight delivery
2 Cold storage
3 Incorporate preservatives
4 Shipment within two weeks to distributors
5 Specially padded boxcars
Even though the technology used to create this product is new we expect that others will be able to substantially reproduce our patented results within XX years To remain on the leading edge of this product we will need to devote approximately XX of revenues toward research and development Also due to the fast changing nature of this industry we will need to retrofit these machines within XX years at customer expense Our manufacturing plan has considered this
[If general service to be offered is not obvious such as carpet cleaning sales rep lawn care consulting etc explain what service is Then give a detailed description of your particular service and its uniqueness]
Short Examples
1 Our carpet cleaning machinery is stateoftheart
2 Our consulting practice will address these specialized areas [list]
3 We will only rep these specific product lines [list]
Even though at this time our expertise is unique in the marketplace we expect advances to be made and competitors to arise and offer similar services We will meet this challenge by
1 Hiring staff specialized in these new areas
2 Increase our continuing education and training expense
3 Adding complementary lines
4 Make regular investments in new equipment
Objectives
Long Term
[My Company] believes very strongly in technical financial business and moral excellence To secure a stable future for all those connected with [My Company] we have set the following long term goals
Present market is estimated at XXX Our goal for market share is XX
We want to be considered by our peers to be the market leader in sales as evidenced by
Trade industry awards
High end of scale in financial ratios
Major market share
Technical excellence (awards honors etc)
Community involvement (Rotary United Way etc)
Short Term
Market share goals
1 First Year XX
2 Second Year XX
3 Third Year XX
4 Fourth Year XX
[Decrease Maintain] costs through acquisition of new plant and equipment Increase productivity by investing in employee training and education
1 Budget for complete computer training for appropriate applications
2 Set up Maintain] employee benefit program for continuing college education
3 Budget for necessary seminars andor continuing jobspecific education
4 Maintain stateoftheart accounting system for careful tracking
5 Monthly reports on financial status visavis the industry
6 Aggressive recruitment of the best technical staff in the industry
7 Support company involvement in various local and national charity events
Competitors
Name
Address
City State
Strengths
§ Location next door to supplier factory on major artery close to terminal etc
§ Pricing Low cost producer known for aggressive pricing policy
§ Delivery ships overnight to anywhere in the world
§ Management Everyone has an MBA from Harvard
Weaknesses
§ Service takes more than 3 months to receive spare parts
§ Dedication If it’s sunny they’re on the golf course or ski slope
§ Machinery Slowly approaching obsolescence unless replaced within six months
§ Overhead Spend lavishly on corporate dining room limousines and champagne
Competitive Advantages
The distinctive competitive advantages which [My Company] brings to this market are
Experience in this market [Iwe] have XXX years of handson experience in this industry
Sophistication in finance and distribution This results in my being the low cost supplier in these price sensitive markets
The philosophy of [My Company] is to price not just according to our costs but also according to what the market will pay
Our targeted minimum gross profit margin for a category must be XX
By pricing to the market [Iwe] will achieve higher sales and therefore increase my buying power As the amounts of my purchases increase my per unit costs of shipping decrease and [Iwe] will achieve higher discount levels from my suppliers Through these economies of scale many items currently on the market can be sold with lower prices yet a higher net profit
Product pricing will include a range of quantity discounts as well as an early payment discount
Rather than being strictly regional [Iwe] will expand into the national market
To control foreign exchange risks [Iwe] will monitor the markets and hedge accordingly [Iwe] will also use overseas bank accounts
With those companies with which [Iwe] have established a relationship or are known to be financially secure [Iwe] will work on a prepay basis This allows me greater discounts
A level and policy of Capitalization that will allow me to fully address the respective markets with comprehensive marketing and customer service plans
By keeping my overhead low [Iwe] will be able to funnel my profits back into operations thus avoiding high debt ratios or lost sales opportunities
A quarterly direct mail campaign directed at both current customers and prospective new customers consisting of an informative newsletter
A tollfree national 800 number will be used for customer orders and inquiries
[Iwe] will print complete fourcolor catalogs on a yearly basis Price lists will be updated as needed [Iwe] intend to be aggressive in trade magazine advertising
Consideration will also be given to attending trade shows around the country
With this level of capitalization should an unexpected downturn occur [Iwe] will be able to continue operations on a positive scale
Innovation [Iwe] have a history of innovative ideas
[List your most meaningful ideas and any new ideas you have for the future]
The distinctive competitive advantages which [My Company] brings to this market are
Experience in this market [Iwe] have XX years of hands on experience in this industry
Sophistication in management and finance We are able to run an efficient and lean structure yet still provide quality service to our clients and customers
Because of the nature of this industry we will be able to rent office space in more moderately priced buildings
As a unique service company we will be able to keep our margins high allowing us to provide internal financing for growth possibilities
A level and policy of Capitalization that will allow [meus] to fully address the respective markets with comprehensive marketing and customer service plans
By keeping my overhead low [Iwe] will be able to funnel my profits back into operations thus avoiding high debt ratios or lost sales opportunities
Our initial marketing campaign will allow us to book a sufficient amount of business so that we can implement our telephone customer service support program
Innovation
[Iwe] have a history of innovative ideas
[List your most meaningful ideas and any new ideas you have for the future]Summary
Through [myour] leadership [Iwe] will be able to reduce overhead as a percentage of sales thereby increasing the amount of profit to be retained in the business Because of our pricing policy more people will purchase our merchandise thus increasing the size of the market and we will be increasing our market share What [My Company] proposes to use are just good solid business sense economies of scale and the use of efficient financial techniques This will allow us the following options
§ increase service
§ increase advertising
§ reduce prices
§ increase profits
§ increase selection
Through [myour] leadership [Iwe] will be able to reduce overhead as a percentage of sales thereby ncreasing the amount of profit to be retained in the business What [My Company] proposes to use are just good solid business sense economies of scale and the use of efficient financial techniques This will allow us the following options
§ increase customer service
§ increase advertising expenditures
§ increase profits
§ increase selection of services offered
This plan will give us tremendous flexibility to use any of these options or a mix of them to effectively attack our target markets and meet our long term goals This combination of experience sophistication capitalization and innovation will assist [My Company] as it strives to reach its sales profit and return objectives
Pricing
Before [Iwe] set the price for my complex widgets [Iwe] determined on a unit basis what my costs were going to be [Iwe] then determined what the market price was for the normal widget At this price it was determined that for all but the lowest sales projections this product would turn a profit at this price However since our complex widgets offer additional features we felt that we could price it approximately 50 above simple widgets
To test this price we called a database of 50 large users of simple widgets We first questioned them about the desirability of our extra features and then asked them directly if this price would be acceptable if such a product were available We found that 75 of those polled would be interested in this product Of this 75 we received 10 firm orders representing approximately 30 of this group
OR
We have determined that the market price is XX per unit This will equal a margin of XX
OR
Our unit cost has been figured at XX We need a margin of XX to pay our overhead and earn a sufficient profit Therefore our selling price will be XX
Before [Iwe] set the price for our [service] [Iwe] forecast what our fixed monthly costs were going to be [Iwe] then determined what the market rate for comparable services were At this rate it was determined that for all but the lowest billing projections this [Service] would turn a profit at this rate
[Optional if applicable]
However since our service is unique and demands a higher level of expertise we felt that we should bill above other comparable rates
Specific Markets
Market #1
General History
The first widget was introduced into the market in 1036 Widgets remained much as the original production until well into the 20th century when computer modeling showed that there could be some enhancements made to the basic widget The market for widgets has been generally steady with market growth closely following the typical population growth At this time there are approximately 1500 companies worldwide making comparable simple widgets
Lawn care companies have enjoyed a period of steady growth over the past twenty years This demand is due to many factors not the least of which is the advance of lawn care technology In our proposed marketing area there are 25 lawn care services
Entry Strategy
Our widget has been designed by the latest in computer aided design We are able to manufacture our complex widgets on computer driven assembly lines using the latest in robotics manufacturing This gives us a tremendous price advantage
We intend to market our complex widget through all the normal channels available to simple widgets These include retail wholesale and OEM To penetrate this market efficiently and swiftly we intend to initially use commission sales representatives strategically located throughout the USA We also will start a national advertising campaign targeting the end user in various national publications and on national TV commercials
Our sales representatives will be chosen based on their own experience in the marketplace It is our intention to hire the best and the brightest among those currently available Our marketing tests included many of the reps we initially would like to hire
Over the past few years we have noticed an increase in demand for full lawn care services not just grass cutting and snow removal Our computerized office allows us to track our clients needs and schedule house calls on one hours notice
We intend to attack this market very aggressively through the use of
1 A pool of 10 telemarketers
2 Housetohouse visits to neighbors of present clients
3 Advertisements in upscale magazines
4 Radio advertisements on weekends
5 Sales calls on real estate management companies
As we are offering a unique service informing the public of our capabilities is of utmost importance
Growth Strategy
After having successfully introduced the complex widget into the American market our expansion will be in two separate areas increasing sales in the USA and entering various foreign markets
After we have reached our first year sales goals we intend to offer our sales reps the opportunity to sell our products exclusively by joining our company We expect that a small percentage will desire to remain independent and these will have to be replaced with our own sales force We intend to develop further sales reps from within by hiring and training them in our own sales methods We will increase national advertising and begin targeting smaller accounts and specialty outlets Additionally we will conduct in house seminars for various OEM’s demonstrating how the inclusion of complex widgetry into their own products will increase the value of their products
After having successfully completed this entry phase into this market in the geographical are we have chosen we will then expand our market by doing the following
1 Expand telemarketing pool to 20
2 Increase number of direct sales reps
3 Expand into neighboring cities
Market Size and Share
The American market for [productservice] is estimated at 8 Billion annual sales based on data furnished by XYZ Survey We estimate that we can achieve XX market share within XX years
Marketing data for other markets is in the process of collection
Other Markets
Use the same format for additional markets
Targeting New Markets
To continue our growth we will be using the following methods to expand our markets and to increase our new areas of doing business
§ Customer contact find out their needs
§ Look for complementary products
§ Trade shows
§ World Trade Center Network
§ US Government trade leads
§ State Government trade leads
§ Online computer prospecting and qualification (DIALOG D&B etc)
§ Market surveys
§ Research & development
Location
RETAIL EXAMPLE
This business will be operated at 123 Any Street This location is desirable because
1 The traffic flow has been rated at high
2 The rent is below market
3 The building has the necessary facilities to operate this business
4 The location is convenient for our customers
We are renting this building on a XX year lease We will have renovations costing XXX based upon three estimates The building is zoned R3 commercial use
OTHER SAMPLE
This business will be operated at 123 Any Street This location is desirable because
1 The building is structurally compatible for our use
2 The rent is below market
3 The building has the necessary facilities to operate this business
4 The location is convenient for our freight companies suppliers clients and employees
5 Possibility of expansion in the area
We are renting this building on a XX year lease We will have renovations costing XXX based upon three estimates The building is zoned R3 commercial use
Manufacturing Plan
SAMPLE
We will be using a conventional assembly line method of construction of our complex widgets Our main supplier of component parts will be DEF Manufacturing of Fort Lee NJ In the event that they are not able to ship according to our specifications our secondary supplier will be MNO Amalgamated located in Charlotte NC These parts will be shipped to us by motor freight
The actual machinery used in the production line will be manufactured by A&M Machine Tools of Arlington Texas They also will be doing maintenance under a service contract This design of machine and assembly will allows us to produce 24 hours a day as the entire assembly process is fully automated with stateof theart robotics of American manufacture
With robotics our labor costs and therefore our production costs will be the lowest in the industry To maintain our advantage we have established lines of communication with all of our potential machinery suppliers Most importantly we have an ongoing relationship with several universities and are actively participating in various studies and experiments relating to production methods
These machines also incorporate quality checking by lasers All products must come within XX of specifications Also at regular intervals we will be using human inspection of products and machines
We do not anticipate generating any toxic materials at this time for these products However we will be closely monitoring all production to determine if any hazardous materials are being generated We have contracted with an environmental engineering company to advise us on any possible problems as well as solutions including legal disposal of all hazardous wastes
We anticipate the following outlays for this capital equipment
A&M Machines XXX
Service Contract XXX
Research & Development
SAMPLE
We have already spent a considerable amount of time in researching and developing our complex widgets We have a very simple laboratory equipped with the basic research equipment we need We have thus far been able to discover lighter materials and several cost cutting manufacturing methods The largest achievement to date is the discovery of a water based lubricant that does not disintegrate in rainstorms We have called this lubricant H2OcusPocus
Presently our research is being supervised by our Technical Director John Q Public He will continue in this capacity Having been the researcher involved with all our activities to this point he is well qualified to continue our research efforts
Our next research project will center around using this new lubricant in our manufacturing processes and testing of a new material that has come to our attention
To this point our research has paid for itself as we have been keying on bringing this new product to market However now that we are becoming more experimental in our research efforts such a continued success ratio can not be maintained
We have been investigating several potential government (both state and federal) funding sources Our present program of joint research with the local university has bproven very beneficial
Historical Financial Data
See Attachments
[This discussion should include all facts pertaining to your financial statements]
SAMPLE
Income Statement
[Discuss both positive and negative aspects of your income statements This is no time for trying to hide the facts]
Balance Sheet
[Discuss both positive and negative aspects of your balance sheets This is no time for trying to hide the facts]
Asset Worksheet
[Discuss both positive and negative aspects of your assets This is no time for trying to hide the facts]
Ratio Analysis
Financial ratios are included for your convenience
Financial Standards
We have also included financial standards as compiled by Dun & Bradstreet and Robert Morris Associates
Proforma Financial Data
See Attachments
Proforma Cash Flow Analysis
SAMPLE
Assumptions
Cash Receipts Percentages as indicated
Rent Building rental at 12square foot
Utilities Water gas sewer trash electric
Telephone Local long distance and cellular
Salaries Executives
Payroll Hourly non executive
Withholding Figured at XX
Inventory
FreightIn
Office Supplies
Postage
Advertising Trade magazine direct mail etc
Professionals
Commissions Figured at 10
Insurance
Travel & Entertainment
Research [Explanation]
Miscellaneous
State Taxes XX
Federal Taxes XX
Terms to customers 210 n30 (only to qualified accounts)
Terms from suppliers Suppliers offers 3 cash discount
Sales Forecast
SAMPLE
Sales have been forecast at the following growth rates
Year 2 Year 3
Product 1 XX XX
Product 2 XX XX
Cash Flow Variables
SAMPLE
We project that we will be able to generate sufficient capital from operations to meet our initial needs after the infusion of 200000 However our projections are in industries that have never been fully addressed and are based upon present real buying conditions and our own experience Should sales not be up to projections adjustments will be made in ordering and long term commitments decreased or postponed
Income Statement
Assumptions
Returns discounts We are offering a range of quantity
discountsplus an early payment discount to
those extended credit Average is estimated
to be 5
Cost of goods sold
Expenses Totaled from Cash Flow Analysis spreadsheets
Freight Paid by customers
Risks & Variables
SAMPLE
We have considered seasonal trends and have forecasted accordingly [IWe] believe the forecasts are conservative
Proforma Balance Sheet
Cost Control
SAMPLE
Our books will initially be maintained manually [My Company] seeks at a future point to use a computerized accounting package to monitor our financial performance This information will be compiled at the end of each month for preparation of financial statements Each month these statements will be reviewed against our proformas and appropriate action taken to adjust costs or our budget If we find that we are continually over budget our first step will be to reevaluate our markup on products and then to recheck our costs to make certain that we are obtaining the best possible prices
Ratio Analysis
Financial ratios are included for your convenience
Financial Standards
We have also included financial standards as compiled by Dun
& Bradstreet and Robert Morris Associates
Breakeven Point
Taken from BPMBREAKWK1 spreadsheet
SAMPLE
The following chart shows our breakeven point
Profit Revenue Fixed Costs Variable Costs
0 2000000 390000 1610000
It is intended that [My Company] will be profitable in the XXX
Quarter 199X
Effects of Loan or Investment
SAMPLE
The money invested in [My Company] will be used for the following purposes
§ Purchase of DEF Machine Model # 333058 including installation (150000)
§ Working capital (50000)
§ Leasehold improvements (est 15000)
§ Laboratory equipment Beakers test tubes petrie dishes (1500)
§ Startup costs legal fees filing fees
§ Inventory raw materials (25000)
§ Delivery trucks (GMC Model 80 10995)
§ Computer equipment 15 Austin 48633 Winstations (40425)
These outlays will enable us to operate at a level that will allow us to meet our conservative sales goals for the first year This will also allow us to outright purchase these items rather than finance or lease them
Attachments
文档香网(httpswwwxiangdangnet)户传
《香当网》用户分享的内容，不代表《香当网》观点或立场，请自行判断内容的真实性和可靠性！
该内容是文档的文本内容，更好的格式请下载文档
BUSINESS PLAN
[My Company]
123 Main Street
Anytown USA 10000
1234567
[Your Name]
[DATE]
TABLE OF CONTENTS
Executive Summary 1
Management 2
[Company] History 6
[ProductService] Description 8
Objectives 10
Competitors 11
Competitive Advantages 12
Innovation 14
Pricing 15
Specific Markets 16
Growth Strategy 17
Market Size and Share 18
Targeting New Markets 19
Location 20
Manufacturing Plan 21
Research & Development 22
Historical Financial Data 23
Proforma Financial Data 24
Proforma Balance Sheet 27
Cost Control 28
Effects of Loan or Investment 29
Attachments 30
Executive Summary
[My Company] was formed as a [proprietorship partnership corporation] in [Month Year] in [City State] by [John Doe] in response to the following market conditions
[Startup growth] opportunities exist in [ProductService]
The need for use of efficient distribution and financial methods in these overlooked markets
[IWe] have several customers who are willing to place large [orderscontracts] within the next three months
Several other prospective [customersclients] have expressed serious interest in doing business within six months
[IWe] previously owned a company that was active in the widget markets Over the past few years I spent much time studying ways to improve overall performance and increase profits This plan is a result of that study
The basic components of this plan are
1 Competitive pricing
2 Expand the markets
3 Increased advertising
4 Lower our unit costs
5 Thereby achieving higher profits
1 Sign contracts
2 Increased advertising
3 Increase office staff
To this end [Iwe] need investment from private individuals andor companies A total of XXX is being raised which will be used to finance working capital plant and equipment The company will be incorporated and common stock issued to investors The company will be run as a [proprietorship partnership corporation]
Financial Goals
Year 1
Year 2
Year 3
Sales
1000000
1400000
1600000
Net Income
25000
250000
375000
Earnings per share
01
12
14
Management
[Name]
[Title] [Experience] Sales growth from zero to 1000000 in five years Led market in market share 30
Formulated advertising budgets & campaigns
Pioneered new distribution channels
Established national sales force
Established national repair & service centers
Brought new and innovative products to the market
Designed pointofpurchase materials
[Education}
University of Boston
Boston MA
BA Computer Sciences
Short Biographies
President
John Q Doe Chief Executive Officer and Director since February 1988 and President since January 1990 Mr Doe was the founder and Chief Executive Officer of the original operating company known as Random Excess Inc He has had experience in the widget field with his own firm John Doe Co of Oshkosh (Wisconsin) from 1980 to 1987 This firm was sold to FatCat Widgets Inc in 1987 Mr Doe has held a sales position with U S West Inc since then Mr Doe graduated from the University of Colorado in 1981 with a bachelor’s degree in philosophy Mr Doe is employed by the Company on a fulltime basis
Chief Financial Officer
Richard Roe CPA Chief Financial Officer Treasurer and Director Mr Roe joined Random Excess Inc in December 1988 as a corporate controller and was named Chief Financial Officer in July 1989 Mr Roe was appointed Treasurer and a Director in July 1990 He served as corporate controller of XYZ Lumber Company from August 1981 to December 1988 Mr Roe graduated from Metropolitan State College in Denver Colorado in 1976 with a bachelor’s degree in accounting Since 1979 he has been licensed as a Certified Public Accountant in the State of Colorado and is a member of the American Institute of Certified Public Accountants Mr Roe is employed by the Company on a fulltime basis
Vice President
Joe Dokes Secretary Executive Vice President and Director Mr Dokes supervises the company’s sales and implementations to its largest corporate customers including US West Great West Life Insurance etc Mr Dokes has served as Secretary and a Director since February 1988 Vice President of Operations from February 1988 to December 1988 President of the Company from December 1988 to January 1990 and Vice President of Contract Sales since January 1990 He has been involved since 1986 with the private company originally formed as Random Excess Inc where his duties included managing the purchasing and sales department From November 1984 to May 1986 he managed the sales department at Integrated Management Systems Inc From June 1983 to October 1984 he was a buyer for Adams County Colorado School District 50 Mr Dokes attended Oklahoma State University in 1980 and 1981 and Trinidad State College in Trinidad Colorado in 1981 and 1982 He did not receive a degree from either university Mr Dokes is employed by the Company on a fulltime basis
Vice President
Sally Seaugh Vice President of Marketing Ms Seaugh has been the Company’s Vice President of Marketing since November 1988 From September 1986 to October 1988 she was involved in business development and marketing for United Bank of Aurora (Colorado) From February 1980 to August 1986 she was selfemployed as an independent oil and gas landman Ms Seaugh graduated from the University of Denver in 1974 with a bachelor’s degree in Education She is employed by the Company on a fulltime basis
Responsibilities
John Q Doe Chief Executive Officer Responsible for entire operation Oversees management function and all other executives
Salary 60000
Richard Roe CPA Chief Financial Officer Responsible for financial operations accounts payable accounts receivable interaction with auditors investor relations Salary 40000
Joe Dokes Executive Vice President Responsible primarily for sales and sales support
Salary 35000
Sally Seaugh Vice President of Marketing Responsible for marketing human resources and training
Salary 30000
Total Executive Compensation 165000
[This Page is for an Organization Chart if applicable]
[Company] History
In [Month Year] [Iwe] formed a [ProductService] company that manufactured startoftheart complex widgetry This company was located in [City State] [Iwe] formed this company as a [proprietorship partnership corporation] Others involved in this business were [names]
The main goal of this company was to [explain]
Financing was arranged through [home equity loans savings venture capital friends and family etc] [Explain terms rates and ability to repay]
This venture was very successful in generating and increasing sales but was not effective in achieving profitability The main reason for this was the amount of actual overhead experienced This overhead was not initially anticipated by me at the beginning of that venture Items including credit checking warranty program management extensive travel maintaining warehouse stock and the management and expense of a national sales force were expenses not originally forecast or expected With this level of overhead it was mathematically impossible to achieve profitability
or
This venture was very successful in generating and increasing sales as well as effective in achieving profitability This was due to the following reasons
[Reason 1}
[Reason 2]
[Reason 3]
OR
[My Company] was recently conceived and is still in the beginning stages To this point the following has been accomplished
§ A team consisting of [list names and primary responsibility (ie John Doe Marketing) has been formed
§ A prospective [customerclient] list has been drawn up
§ Strategy meetings are being held every Monday Wednesday and Friday evenings
§ This business plan has been drawn up
[Now link the past to the future why a former company will lead into this one or how your present company and history will lead into any future plans A short paragraph should suffice]
We are now able to adequately address the markets we have targeted We have adjusted our staff redirected our advertising and sales force and have added the products necessary to meet the needs and expectations of our customers
[ProductService] Description
[My Company] intends to offer [productservice] This [productservice] offers our customers the best possible solution as it
§ Offers the lowest price on the market
§ Is the most technically advanced
§ Offers more useful features
§ Saves them time and money
§ Offers our users better value per dollar spent
§ Provides an alternative way to achieve a similar task
§ Provides a service which is not presently available in this area
§ Is strengthened by a team with combined experience of XX years
§ Saves them time and money
§ Provides an alternative cost effective way for them to realize a similar goal
We have a [copyright service mark trademark] or [exclusive agency marketing rights] for this [productservice] This agency will last until XXX at which time it may be extended for XX years or terminated This agency agreement is cancelable upon XX days written notice
The [productservice] has a useful life of XX years To distribute this product so that it remains usable for our customers we must use the following methods of storage and transportation
1 Overnight delivery
2 Cold storage
3 Incorporate preservatives
4 Shipment within two weeks to distributors
5 Specially padded boxcars
Even though the technology used to create this product is new we expect that others will be able to substantially reproduce our patented results within XX years To remain on the leading edge of this product we will need to devote approximately XX of revenues toward research and development Also due to the fast changing nature of this industry we will need to retrofit these machines within XX years at customer expense Our manufacturing plan has considered this
[If general service to be offered is not obvious such as carpet cleaning sales rep lawn care consulting etc explain what service is Then give a detailed description of your particular service and its uniqueness]
Short Examples
1 Our carpet cleaning machinery is stateoftheart
2 Our consulting practice will address these specialized areas [list]
3 We will only rep these specific product lines [list]
Even though at this time our expertise is unique in the marketplace we expect advances to be made and competitors to arise and offer similar services We will meet this challenge by
1 Hiring staff specialized in these new areas
2 Increase our continuing education and training expense
3 Adding complementary lines
4 Make regular investments in new equipment
Objectives
Long Term
[My Company] believes very strongly in technical financial business and moral excellence To secure a stable future for all those connected with [My Company] we have set the following long term goals
Present market is estimated at XXX Our goal for market share is XX
We want to be considered by our peers to be the market leader in sales as evidenced by
Trade industry awards
High end of scale in financial ratios
Major market share
Technical excellence (awards honors etc)
Community involvement (Rotary United Way etc)
Short Term
Market share goals
1 First Year XX
2 Second Year XX
3 Third Year XX
4 Fourth Year XX
[Decrease Maintain] costs through acquisition of new plant and equipment Increase productivity by investing in employee training and education
1 Budget for complete computer training for appropriate applications
2 Set up Maintain] employee benefit program for continuing college education
3 Budget for necessary seminars andor continuing jobspecific education
4 Maintain stateoftheart accounting system for careful tracking
5 Monthly reports on financial status visavis the industry
6 Aggressive recruitment of the best technical staff in the industry
7 Support company involvement in various local and national charity events
Competitors
Name
Address
City State
Strengths
§ Location next door to supplier factory on major artery close to terminal etc
§ Pricing Low cost producer known for aggressive pricing policy
§ Delivery ships overnight to anywhere in the world
§ Management Everyone has an MBA from Harvard
Weaknesses
§ Service takes more than 3 months to receive spare parts
§ Dedication If it’s sunny they’re on the golf course or ski slope
§ Machinery Slowly approaching obsolescence unless replaced within six months
§ Overhead Spend lavishly on corporate dining room limousines and champagne
Competitive Advantages
The distinctive competitive advantages which [My Company] brings to this market are
Experience in this market [Iwe] have XXX years of handson experience in this industry
Sophistication in finance and distribution This results in my being the low cost supplier in these price sensitive markets
The philosophy of [My Company] is to price not just according to our costs but also according to what the market will pay
Our targeted minimum gross profit margin for a category must be XX
By pricing to the market [Iwe] will achieve higher sales and therefore increase my buying power As the amounts of my purchases increase my per unit costs of shipping decrease and [Iwe] will achieve higher discount levels from my suppliers Through these economies of scale many items currently on the market can be sold with lower prices yet a higher net profit
Product pricing will include a range of quantity discounts as well as an early payment discount
Rather than being strictly regional [Iwe] will expand into the national market
To control foreign exchange risks [Iwe] will monitor the markets and hedge accordingly [Iwe] will also use overseas bank accounts
With those companies with which [Iwe] have established a relationship or are known to be financially secure [Iwe] will work on a prepay basis This allows me greater discounts
A level and policy of Capitalization that will allow me to fully address the respective markets with comprehensive marketing and customer service plans
By keeping my overhead low [Iwe] will be able to funnel my profits back into operations thus avoiding high debt ratios or lost sales opportunities
A quarterly direct mail campaign directed at both current customers and prospective new customers consisting of an informative newsletter
A tollfree national 800 number will be used for customer orders and inquiries
[Iwe] will print complete fourcolor catalogs on a yearly basis Price lists will be updated as needed [Iwe] intend to be aggressive in trade magazine advertising
Consideration will also be given to attending trade shows around the country
With this level of capitalization should an unexpected downturn occur [Iwe] will be able to continue operations on a positive scale
Innovation [Iwe] have a history of innovative ideas
[List your most meaningful ideas and any new ideas you have for the future]
The distinctive competitive advantages which [My Company] brings to this market are
Experience in this market [Iwe] have XX years of hands on experience in this industry
Sophistication in management and finance We are able to run an efficient and lean structure yet still provide quality service to our clients and customers
Because of the nature of this industry we will be able to rent office space in more moderately priced buildings
As a unique service company we will be able to keep our margins high allowing us to provide internal financing for growth possibilities
A level and policy of Capitalization that will allow [meus] to fully address the respective markets with comprehensive marketing and customer service plans
By keeping my overhead low [Iwe] will be able to funnel my profits back into operations thus avoiding high debt ratios or lost sales opportunities
Our initial marketing campaign will allow us to book a sufficient amount of business so that we can implement our telephone customer service support program
Innovation
[Iwe] have a history of innovative ideas
[List your most meaningful ideas and any new ideas you have for the future]Summary
Through [myour] leadership [Iwe] will be able to reduce overhead as a percentage of sales thereby increasing the amount of profit to be retained in the business Because of our pricing policy more people will purchase our merchandise thus increasing the size of the market and we will be increasing our market share What [My Company] proposes to use are just good solid business sense economies of scale and the use of efficient financial techniques This will allow us the following options
§ increase service
§ increase advertising
§ reduce prices
§ increase profits
§ increase selection
Through [myour] leadership [Iwe] will be able to reduce overhead as a percentage of sales thereby ncreasing the amount of profit to be retained in the business What [My Company] proposes to use are just good solid business sense economies of scale and the use of efficient financial techniques This will allow us the following options
§ increase customer service
§ increase advertising expenditures
§ increase profits
§ increase selection of services offered
This plan will give us tremendous flexibility to use any of these options or a mix of them to effectively attack our target markets and meet our long term goals This combination of experience sophistication capitalization and innovation will assist [My Company] as it strives to reach its sales profit and return objectives
Pricing
Before [Iwe] set the price for my complex widgets [Iwe] determined on a unit basis what my costs were going to be [Iwe] then determined what the market price was for the normal widget At this price it was determined that for all but the lowest sales projections this product would turn a profit at this price However since our complex widgets offer additional features we felt that we could price it approximately 50 above simple widgets
To test this price we called a database of 50 large users of simple widgets We first questioned them about the desirability of our extra features and then asked them directly if this price would be acceptable if such a product were available We found that 75 of those polled would be interested in this product Of this 75 we received 10 firm orders representing approximately 30 of this group
OR
We have determined that the market price is XX per unit This will equal a margin of XX
OR
Our unit cost has been figured at XX We need a margin of XX to pay our overhead and earn a sufficient profit Therefore our selling price will be XX
Before [Iwe] set the price for our [service] [Iwe] forecast what our fixed monthly costs were going to be [Iwe] then determined what the market rate for comparable services were At this rate it was determined that for all but the lowest billing projections this [Service] would turn a profit at this rate
[Optional if applicable]
However since our service is unique and demands a higher level of expertise we felt that we should bill above other comparable rates
Specific Markets
Market #1
General History
The first widget was introduced into the market in 1036 Widgets remained much as the original production until well into the 20th century when computer modeling showed that there could be some enhancements made to the basic widget The market for widgets has been generally steady with market growth closely following the typical population growth At this time there are approximately 1500 companies worldwide making comparable simple widgets
Lawn care companies have enjoyed a period of steady growth over the past twenty years This demand is due to many factors not the least of which is the advance of lawn care technology In our proposed marketing area there are 25 lawn care services
Entry Strategy
Our widget has been designed by the latest in computer aided design We are able to manufacture our complex widgets on computer driven assembly lines using the latest in robotics manufacturing This gives us a tremendous price advantage
We intend to market our complex widget through all the normal channels available to simple widgets These include retail wholesale and OEM To penetrate this market efficiently and swiftly we intend to initially use commission sales representatives strategically located throughout the USA We also will start a national advertising campaign targeting the end user in various national publications and on national TV commercials
Our sales representatives will be chosen based on their own experience in the marketplace It is our intention to hire the best and the brightest among those currently available Our marketing tests included many of the reps we initially would like to hire
Over the past few years we have noticed an increase in demand for full lawn care services not just grass cutting and snow removal Our computerized office allows us to track our clients needs and schedule house calls on one hours notice
We intend to attack this market very aggressively through the use of
1 A pool of 10 telemarketers
2 Housetohouse visits to neighbors of present clients
3 Advertisements in upscale magazines
4 Radio advertisements on weekends
5 Sales calls on real estate management companies
As we are offering a unique service informing the public of our capabilities is of utmost importance
Growth Strategy
After having successfully introduced the complex widget into the American market our expansion will be in two separate areas increasing sales in the USA and entering various foreign markets
After we have reached our first year sales goals we intend to offer our sales reps the opportunity to sell our products exclusively by joining our company We expect that a small percentage will desire to remain independent and these will have to be replaced with our own sales force We intend to develop further sales reps from within by hiring and training them in our own sales methods We will increase national advertising and begin targeting smaller accounts and specialty outlets Additionally we will conduct in house seminars for various OEM’s demonstrating how the inclusion of complex widgetry into their own products will increase the value of their products
After having successfully completed this entry phase into this market in the geographical are we have chosen we will then expand our market by doing the following
1 Expand telemarketing pool to 20
2 Increase number of direct sales reps
3 Expand into neighboring cities
Market Size and Share
The American market for [productservice] is estimated at 8 Billion annual sales based on data furnished by XYZ Survey We estimate that we can achieve XX market share within XX years
Marketing data for other markets is in the process of collection
Other Markets
Use the same format for additional markets
Targeting New Markets
To continue our growth we will be using the following methods to expand our markets and to increase our new areas of doing business
§ Customer contact find out their needs
§ Look for complementary products
§ Trade shows
§ World Trade Center Network
§ US Government trade leads
§ State Government trade leads
§ Online computer prospecting and qualification (DIALOG D&B etc)
§ Market surveys
§ Research & development
Location
RETAIL EXAMPLE
This business will be operated at 123 Any Street This location is desirable because
1 The traffic flow has been rated at high
2 The rent is below market
3 The building has the necessary facilities to operate this business
4 The location is convenient for our customers
We are renting this building on a XX year lease We will have renovations costing XXX based upon three estimates The building is zoned R3 commercial use
OTHER SAMPLE
This business will be operated at 123 Any Street This location is desirable because
1 The building is structurally compatible for our use
2 The rent is below market
3 The building has the necessary facilities to operate this business
4 The location is convenient for our freight companies suppliers clients and employees
5 Possibility of expansion in the area
We are renting this building on a XX year lease We will have renovations costing XXX based upon three estimates The building is zoned R3 commercial use
Manufacturing Plan
SAMPLE
We will be using a conventional assembly line method of construction of our complex widgets Our main supplier of component parts will be DEF Manufacturing of Fort Lee NJ In the event that they are not able to ship according to our specifications our secondary supplier will be MNO Amalgamated located in Charlotte NC These parts will be shipped to us by motor freight
The actual machinery used in the production line will be manufactured by A&M Machine Tools of Arlington Texas They also will be doing maintenance under a service contract This design of machine and assembly will allows us to produce 24 hours a day as the entire assembly process is fully automated with stateof theart robotics of American manufacture
With robotics our labor costs and therefore our production costs will be the lowest in the industry To maintain our advantage we have established lines of communication with all of our potential machinery suppliers Most importantly we have an ongoing relationship with several universities and are actively participating in various studies and experiments relating to production methods
These machines also incorporate quality checking by lasers All products must come within XX of specifications Also at regular intervals we will be using human inspection of products and machines
We do not anticipate generating any toxic materials at this time for these products However we will be closely monitoring all production to determine if any hazardous materials are being generated We have contracted with an environmental engineering company to advise us on any possible problems as well as solutions including legal disposal of all hazardous wastes
We anticipate the following outlays for this capital equipment
A&M Machines XXX
Service Contract XXX
Research & Development
SAMPLE
We have already spent a considerable amount of time in researching and developing our complex widgets We have a very simple laboratory equipped with the basic research equipment we need We have thus far been able to discover lighter materials and several cost cutting manufacturing methods The largest achievement to date is the discovery of a water based lubricant that does not disintegrate in rainstorms We have called this lubricant H2OcusPocus
Presently our research is being supervised by our Technical Director John Q Public He will continue in this capacity Having been the researcher involved with all our activities to this point he is well qualified to continue our research efforts
Our next research project will center around using this new lubricant in our manufacturing processes and testing of a new material that has come to our attention
To this point our research has paid for itself as we have been keying on bringing this new product to market However now that we are becoming more experimental in our research efforts such a continued success ratio can not be maintained
We have been investigating several potential government (both state and federal) funding sources Our present program of joint research with the local university has bproven very beneficial
Historical Financial Data
See Attachments
[This discussion should include all facts pertaining to your financial statements]
SAMPLE
Income Statement
[Discuss both positive and negative aspects of your income statements This is no time for trying to hide the facts]
Balance Sheet
[Discuss both positive and negative aspects of your balance sheets This is no time for trying to hide the facts]
Asset Worksheet
[Discuss both positive and negative aspects of your assets This is no time for trying to hide the facts]
Ratio Analysis
Financial ratios are included for your convenience
Financial Standards
We have also included financial standards as compiled by Dun & Bradstreet and Robert Morris Associates
Proforma Financial Data
See Attachments
Proforma Cash Flow Analysis
SAMPLE
Assumptions
Cash Receipts Percentages as indicated
Rent Building rental at 12square foot
Utilities Water gas sewer trash electric
Telephone Local long distance and cellular
Salaries Executives
Payroll Hourly non executive
Withholding Figured at XX
Inventory
FreightIn
Office Supplies
Postage
Advertising Trade magazine direct mail etc
Professionals
Commissions Figured at 10
Insurance
Travel & Entertainment
Research [Explanation]
Miscellaneous
State Taxes XX
Federal Taxes XX
Terms to customers 210 n30 (only to qualified accounts)
Terms from suppliers Suppliers offers 3 cash discount
Sales Forecast
SAMPLE
Sales have been forecast at the following growth rates
Year 2 Year 3
Product 1 XX XX
Product 2 XX XX
Cash Flow Variables
SAMPLE
We project that we will be able to generate sufficient capital from operations to meet our initial needs after the infusion of 200000 However our projections are in industries that have never been fully addressed and are based upon present real buying conditions and our own experience Should sales not be up to projections adjustments will be made in ordering and long term commitments decreased or postponed
Income Statement
Assumptions
Returns discounts We are offering a range of quantity
discountsplus an early payment discount to
those extended credit Average is estimated
to be 5
Cost of goods sold
Expenses Totaled from Cash Flow Analysis spreadsheets
Freight Paid by customers
Risks & Variables
SAMPLE
We have considered seasonal trends and have forecasted accordingly [IWe] believe the forecasts are conservative
Proforma Balance Sheet
Cost Control
SAMPLE
Our books will initially be maintained manually [My Company] seeks at a future point to use a computerized accounting package to monitor our financial performance This information will be compiled at the end of each month for preparation of financial statements Each month these statements will be reviewed against our proformas and appropriate action taken to adjust costs or our budget If we find that we are continually over budget our first step will be to reevaluate our markup on products and then to recheck our costs to make certain that we are obtaining the best possible prices
Ratio Analysis
Financial ratios are included for your convenience
Financial Standards
We have also included financial standards as compiled by Dun
& Bradstreet and Robert Morris Associates
Breakeven Point
Taken from BPMBREAKWK1 spreadsheet
SAMPLE
The following chart shows our breakeven point
Profit Revenue Fixed Costs Variable Costs
0 2000000 390000 1610000
It is intended that [My Company] will be profitable in the XXX
Quarter 199X
Effects of Loan or Investment
SAMPLE
The money invested in [My Company] will be used for the following purposes
§ Purchase of DEF Machine Model # 333058 including installation (150000)
§ Working capital (50000)
§ Leasehold improvements (est 15000)
§ Laboratory equipment Beakers test tubes petrie dishes (1500)
§ Startup costs legal fees filing fees
§ Inventory raw materials (25000)
§ Delivery trucks (GMC Model 80 10995)
§ Computer equipment 15 Austin 48633 Winstations (40425)
These outlays will enable us to operate at a level that will allow us to meet our conservative sales goals for the first year This will also allow us to outright purchase these items rather than finance or lease them
Attachments
文档香网(httpswwwxiangdangnet)户传
《香当网》用户分享的内容，不代表《香当网》观点或立场，请自行判断内容的真实性和可靠性！
该内容是文档的文本内容，更好的格式请下载文档