Resources - Chapter 11 Supplement

Business Plan Outline

Cover Page

• Title
• Name
• Address
• Telephone and fax numbers
• Web site URL and e-mail address

Table of Contents

• One-page listing of the major sections and documents in the business plan

Owner's Statement

• One-page description of the business and the owner
• Business name, address, phone numbers, fax number, web site URL, and e-mail address
• Your name, home address, home phone number
• Summary of your business experience and philosophy
• Brief business description: year the business was established; current financial status

Executive Summary

• Business plan highlights

Mission Statement

• Brief statement to convey the essence of your business; encompasses your purpose, values and vision

Purpose, Priorities and Goals

• Overall career purpose and at least six priorities
• Six long-term (3-5 year) priorities and at least two goals per priority
• Six short-term (1-2 year) priorities and at least three goals per priority
• Detailed description of business activities and career plan in terms of short-term and long-term goals

Business Description

• Brief history of your company and your basic purpose/mission statement
• Services you offer and products you sell
• Special products used
• Equipment
• Physical location
• Unique features that distinguish your practice from others
• If you sell products, include a product register with the suppliers' names, define your position in the chain of distribution and specify the types of clients who purchase products

Marketing

• Image
• Target market profiles (at least 3)
• Differential advantage statement
• Competition analysis-including steps you'll take to meet any challenges
• Marketing goals that include a timeline, budget and rationale for each activity or strategy (specify goals for each area of marketing-promotion, advertising, publicity and community relations)
• If you sell products, include a description and cost for the following: inside displays; additional sales staff (include training); equipment; and special promotions, discounts and sales
• Annual marketing budget and the estimated cost per potential client
• Summary of how your marketing strategies will enable you to succeed

Financial Analysis-Applicable to Both Start-Up & Established Businesses

• Income potential
• Projections and trends for your specific profession (nationally and locally)
• Average income and number of clients for practitioners in your specific field (both nationally and locally) for the first 6 months of practice, the first year, the second year, and the third year
• Fees: including introductory offers, pre-paid package discounts, professional courtesy discounts and sliding fee scales
• Amenities to be absorbed in pricing
• Your competition's effect on pricing
• Current fiscal year financial status reports: Balance Sheet, Profit and Loss Statement
• Financial Worksheets: Opening Balance, Business Income and Expense Forecast. Monthly Business Expenses Worksheet, Monthly Personal Budget Worksheet, Cash Flow Forecast
• Money needed to open business and the annual operations budget for each of the next 3-5 years
• Break-even analysis

Financial Analysis-Start-Up (in addition to key data specified above)

• Capital needed for organizational expenses
• Capital needed for equipment and inventory
• Cash flow required for monthly operating expenses
• Anticipated length of time money will be needed to cover operating expenses until business makes a profit
• Total capital required for scenarios covered in first four bullet points
• Amount of sales needed to cover break-even point and generate profit
• Potential funding sources and note how any loans are to be secured
• Money needed for owners' draw, income tax payments or loan payments

Financial Analysis-Established Business (in addition to key data specified above)

• Equipment, supplies and inventory needed for next 12 months and acquisition plan
• Income data and projections: monthly for the current fiscal year, quarterly for the nxt year and annually for the following three years (include any explanatory notes)
• Product sales data and projections for the current fiscal year, next year and three-year history (include any explanatory notes)
• Monthly Cashflow Projections for the current fiscal year and next year (include any explanatory notes)
• Historical financial reports: three-year history of Balance Sheets, Profit and Loss Statements; and tax returns

Operations

• Your management qualifications
• Assessment of your strengths and challenges
• Specify the legal form of ownership
• Requisite licenses, permits and insurance coverage
• Brief overview of your company policies and procedures
• Safety precautions, security needs, and a plan to reduce these types of risks
• Accounting and control summary
• Group practice: describe the various functions, the person(s) responsible, and level of authority.
• Staff: list the various functions, estimated number of people needed for each function, describe the training required, and state your compensation plan

Risk Assessment

• Effects your competition has on all phases of your business
• Possible external events that might hamper your success
• Potential internal problems
• Contingency plan to counteract the most significant risks

Success Strategies

• Goals for developing your success strategies
• Methods for implementing your business plan and having a prosperous practice

Appendix

• Personal net worth statement
• Copies of last two year's income statements and balance sheets
• List of client commitments
• Copies of corporate contracts
• Copies of business legal agreements
• Credit status reports
• News articles about you or your business
• Photographs of your location
• Copies of promotional material
• Letters of recommendation from your clients
• Key employee résumés
• Personal references

Supplement (for business plans to secure loans)

Executive Summary

• State the type of business loan(s) you're seeking (e.g., term loan, line of credit or mortgage)
• Summarize the proposed use of the funds
• Calculate the projected return on investment
• Write a persuasive statement of why the venture is a good risk

Financial Analysis

• Describe the loan requirements: the amount needed, the terms and the date by which it's required.
• State the purpose of the loan, detailing the facets of the business to be financed
• Provide a statement of the owner's equity
• List outstanding debts. Include the balance due, repayment terms, purpose of the loan and status
• Document your current operating line of credit-the amount and security held

References

• List all pertinent information regarding your current lending institution: branch, address, types of accounts and contact person(s)
• List the names, addresses and phone numbers of your attorney, accountant and business consultant.