Business Plan

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Version: <release.draft>
Date: mm.dd.yyyy
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Business Plan
Non-Disclosure Agreement
By proceeding within this document (the Plan), you, any company, entity or organization that you are
employed by or are otherwise the agent of, and all other employees thereof, (collectively, Recipient) and
{Insert Business Name Here} (The Company), agree that
!he plan has been submitted by The Company to Recipient solely for the purpose of evaluating
a potential investment by Recipient in The Company" !he plan is not for use by any other person (s)
or for any other purpose, and may not be reproduced, disseminated or otherwise disclosed to any
person (s), other than any employees or agents of Recipient, including, without limitation, any legal
counsel or accountants, of Recipient, who have a need to #now the contents of the Plan in connection
with the evaluation of a potential investment in The Company (collectively, Representatives) who
agree to the confidentiality provisions herein" Recipient shall be responsible for any and all acts of its
Representatives"
Recipient agrees to hold in the strictest confidence, and not use or disclose to anyone other than
the employees of Recipient, its Representatives and The Company, the information contained in the
Plan or supplied to the Recipient, orally or in writing, by The Company (the $onfidential
%nformation)" $onfidential information includes, without limitation, concepts, cost data, techni&ues,
design, wor# in progress, and other technical #now'how, the identity of customers, suppliers, and
subcontractors of The Company, financial, mar#eting and other business information, or any other
trade secrets of The Company disclosed by The Company to Recipient or its Representatives or any
summaries, analyses or other documents bases thereon" $onfidential information further includes
any information The Company has received from others, which The Company is obligated to treat
as confidential or propriety" %f the Recipient has any &uestions as to what comprises $onfidential
%nformation, the Recipient agrees to consult with an officer of The Company prior to ma#ing any
disclosure thereof"
%t is further agreed that any violation of this agreement by the Recipient or its Representatives will
cause irreparable in(ury to The Company and that The Company shall be entitled to e)traordinary
relief in court, including, but not limited to, temporary restraining orders, preliminary in(unctions, and
permanent in(ections or other e&uitable relief" %f court proceedings are re&uired to enforce any
provision or remedy any breach of this agreement, The Company shall be entitled to an award of
reasonable attorney*s fees incurred in connection therewith"
!his business plan does not constitute an offering" +ny offering will be made by a definitive
offering agreement" !his plan has been submitted on a confidential basis solely to determine if
selected individuals or organizations have an interest in ma#ing an e&uity investment""

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Business Plan
Table o Contents
1 Executive Summary................................................................................................................. 4
2 The Company........................................................................................................................... 4
3 Products & Services.................................................................................................................. 5
4 Industry na!ysis....................................................................................................................... 5
5 "ar#et na!ysis......................................................................................................................... 5
$ "ana%ement and &r%ani'ation................................................................................................. $
( (. Competitive na!ysis............................................................................................................. $
) "ar#etin% and Sa!es Strate%y................................................................................................... $
* S+&T na!ysis......................................................................................................................... (
1, &perations.............................................................................................................................. (
11 -inancin% .e/uirements......................................................................................................... )
12 0eve!opment & "i!estones..................................................................................................... *
13 .is#s and Contin%encies......................................................................................................... *
14 -inancia! 0ata ssumptions & 1i%h!i%hts................................................................................*
15 Exit Strate%y......................................................................................................................... 1,
. Start2up Expenses and Capita! .e/uirements.......................................................................1,
3. "onth!y Income Statement.................................................................................................... 1,
C. "onth!y 3a!ance Sheet......................................................................................................... 1,
0. "onth!y Cash -!o4 Statement............................................................................................... 1,
E. "onth!y -inancia! .atios........................................................................................................ 1,
-. -ive25ear Income Statement................................................................................................. 1,
6. -ive25ear 3a!ance Sheet...................................................................................................... 11
1. -ive25ear Cash -!o4 7rom &perations..................................................................................11
I. -ive25ear -inancia! .atios...................................................................................................... 11
8. "ana%ement Team .esumes................................................................................................ 11
9. Photos o7 :ocation................................................................................................................. 11
:. &ther Supportin% 0ocumentation........................................................................................... 11
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Business Plan
1 !"ecuti#e $ummary
!he ,)ecutive -ummary should be a vivid and concise description of the business with its main
ob(ectives, highlighting the overall intent of the business and the plan itself" %t establishes the tone of the
business plan and should capture the attention of the reader and or investor" !his section should describe
why there is an opportunity and how you plan to capitalize on it. give a brief overview of the management
team and how and why they are capable of e)ecuting the plan"
2 The Company
/"0 1wnership and 2egal -tructure
%t is very important for prospect investors to see the owners of the company by name and percentage of
ownership, how the company will be registered and3or structured (that is, 22$, - $orporation, $
$orporation)"
/"/ 2ocation
4hen initially describing the company, list the physical address (including city and state) of the business"
%nclude warehouses, distribution centers, call centers and any other locations owned and operated by the
company"
/"5 Business 6escription and Bac#ground
Provide a brief description of the business, its history, and how the business idea came to be"
%nclude a brief overview of the products and3or services offered"
/"7 8ission and 9alues
%nclude a mission statement for the company" %t is very important to set the core values from the very
beginning of the business" 2ist 7': core values that are consistent with the company*s mission"
/": Building, 2ayout and 6esign
+lthough you might thin# these details are not very important to an investor, they are, therefore better
include them in the business plan" 4hen writing the plan, ta#e into consideration describing the size of
the building in terms of s&uare footage, describing the layout and design of the space and including
architectural drawings or images" ;ighlight #ey features of the building"
/"< $onstruction
%f you intend to construct the company building, provide a brief description of construction and include a
timeline"
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Business Plan
3 %ro&ucts ' $er#ices
5"0 Products
8a#e sure you list all the products offered by your company, specifying the number of items being
offered" 4e recommend you to include charts and3or graphs that capture your product mi)"
5"/ -ervices
8a#e sure you describe the services offered by your company, specifying the number of services being
offered" 4e recommend you describe each service in detail"
4 In&ustry Analysis
7"0 %ndustry size, structure and growth
+fter a comple) mar#et research, describe the industry size and growth in detail, including ma(or mar#et
segments, e)plaining the mar#et structure"
7"/ %ndustry !rends
6o a mar#et research or let someone else do it for you, describing the ma(or industry trends, including
sales patterns and shifts within mar#et segments" %t is very important that you identify broad mar#et
consumer trends"
5 (ar)et Analysis
:"0 !arget 8ar#et 6emographics and $haracteristics
!his section should cover the following aspects
=eographical location
Population, target customer base
%ncome 2evels
$ustomer 2ifestyle
;ousehold size
:"/ 8ar#et -hare
6escribe your anticipated mar#et share in terms of percentage and dollars, e)plain the strategy that will
be e)ecuted to achieve this mar#et share and specify the timeframe for capturing this mar#et share"
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Business Plan
6 (anagement an& *rgani+ation
<"0 8anagement team
6escribe the core management team, including position descriptions" %nvestors might be impressed if you
discuss individual &ualifications and years of e)perience" %t might be indicated to include an organization
chart"
<"/ -taffing
6escribe the staffing levels of the organization, e)plaining how the planned staff is proportionate to the
size of the business and its pro(ected revenues" %t is recommended that you include a chart that captures
monthly personnel e)penses"
7 ,- Competiti#e Analysis
>"0 !he $ompetition
6escribe the competition by listing the ob(ectives, strategies, capabilities and overall position of each of
your competitors" -eparate the list into two categories 6irect $ompetitors and %ndirect $ompetitors" %t is
recommended that you e)plain how you will respond to competition and your competitive edge"
$onsumers typically have a variety of options to choose from when deciding where to purchase items"
?ot only do they have a choice between competing neighborhood supermar#ets, but they can also shop
at alternative retailers, including large national discount chains and warehouse stores"
>"/ $ompetitive +dvantages
2ist and e)plain your company*s competitive advantages"
8 (ar)eting an& $ales $trategy
@"0 8ar#eting and -ales -trategy 1verview
-ummarize your overall strategy in terms of goals and ob(ectives, including #ey milestones"
@"/ 8ar#eting and -ales !actics
2ist and describe the individual strategic mar#eting and sales efforts and tactics that will be implemented"
Ase the list below as guidelines of tactics that could be used in terms of mar#eting and sales"
!rademar#s, 2ogos, -logans
$ustomer -urveys
Print +dvertisements
Public Relations
$ommercials
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Business Plan
6irect 8ailings
$old $alling
4eb and ,mail 8ar#eting
@"5 8ar#eting and -ales Budget
6escribe where you will concentrate your efforts in terms of dollars" %t is recommended to include a chart
to capture the ma(or categories of your sales and mar#eting budget"
@"7 Pricing -trategy
6escribe your pricing strategy, describing price sensitivity and elasticity of demand" %nvestors would be
interested to see the process you will employ for evaluating and monitoring pricing"
@": -ales Borecast
Prepare a monthly sales forecast for the first year of operation and annual sales forecasts through year :"
%nclude historical sales data, if available"
9 $.*T Analysis
C"0 -41! +nalysis
2ist and describe your e)isting or potential strengths, wea#nesses, opportunities and threats" %nclude a
-41! analysis chart or table"
C"/ -41! strategies
,)plain how you will use your strengths to overcome your wea#nesses and how you will capitalize on
opportunities to mitigate threats"
10 *perations
0D"0 Business 8odel
6escribe your business model with respect to the strategy for managing the overall operation, focusing on
the #ey attributes that will ensure the operation runs as smoothly and efficiently
0D"/ ;ours of 1peration
2ist daily hours of operation and include holiday or seasonal schedule and special closings"
0D"5 -ystems, ,&uipment and -oftware
2ist and describe the type of systems, e&uipment and software re&uired for operations together with cost
estimates or &uotes"
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Business Plan
0D"7 ,mployee !raining and 6evelopment
2ist and describe the employee training and development programs that will be implemented"
0D": Bacilities
%nclude a description of the facilities and what they will be used for"
0D"< 8anufacturing3Production
6escribe your manufacturing and production processes, the production capabilities and include a &uality
control diagram"
0D"> %nventory $ontrol
6escribe your policies and procedures for managing inventory"
0D"@ -uppliers and 6istribution
2ist ma(or suppliers and distributors, providing a brief bac#ground, including location, services provided,
and e)isting customers of suppliers and distributors" %nclude letters of commitment from suppliers and
distributors"
%nclude cost estimates for supply and distribution"
11 /inancing 0e1uirements
00"0 !otal $apital Re&uirements
%nclude the total amount of capital re&uired and how it will be used, including land purchases, building
construction costs, start'up e)penses, cash reserves and any other ways the capital will be used".
00"/ -ecured Bunding
6escribe sources of funding that have already been secured or obtained to fund the pro(ect"
%nclude a detailed brea#down of the sources, amounts, and percentages, include grants, cash donations,
owner*s capital or any other forms of funding already received or secured"
00"5 !otal Binancing Re&uirements
6escribe the total financing re&uirements and the proposed structure in terms of interest rate, terms and
conditions"
%nclude a chart that captures a brea#down of the financing re&uest"
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Business Plan
12 De#elopment ' (ilestones
0/"0 $ompleted +ctions
Prepare a list of completed action items and significant milestones relevant to the business plan"
%nclude the month and year each item was completed"
0/"/ +ctions to be $ompleted
Prepare a list of actions to be completed estimating the month and year each action will be completed"
0/"5 !imeline
%nclude a bulleted chronological timeline of the completed actions, milestones, and actions to be
completed"
13 0is)s an& Contingencies
05"0 Ris#s
2ist and describe the #nown ris#s or potential ris#s associated with your business, describing the process
or the manner in which these ris#s will be addressed or mitigated"
05"/ $ontingency Planning
%nclude a contingency plan (bac#'up plan) based on conservative estimates or worst case scenarios for
budgeting and forecasting revenue and e)penses"
14 /inancial Data Assumptions ' Highlights
07"0 Binancial data assumptions
%nclude only the main assumptions driving the business, financial budgets and forecasts"
!"ample2
34-3-3 Income $tatement
-ales, E5@7 per s&uare foot in Fear 0, 5>G below the national average of E<0/, ad(usted for local
income levels and spending traits of the target mar#et"
$ost of goods and services,>5"7G, based on the national average
Bederal !a) Rate, 5:G, -tate !a) Rate, >"5G
Bully burdened labour rate, 0/G of sales on average
,mployee benefits /DG, ta)es 0DG
$ost of overhead, //G of sales
+verage sales growth rate, /0G in year /, >G years 5':
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Business Plan
+verage pre'ta) profit,>G
34-3-5 Balance $heet
-traight'line depreciation, 5D years' building, 0D years H furniture3refrigeration, : years'
#ios#s3computers3registers
34-3-6 Cash /lo7
$ost of debt ban# loan, 0: years at :G, convertible bond : years at @G
Bor Binancial Ratios, mention reference to +PP,?6%I 81?!;2F B%?+?$%+2 R+!%1- and +PP,?6%I
B%9, F,+R B%?+?$%+2 R+!%1-"
34-3-4 Customers
+vg" -ale per customer3per wee#, E:0"50
J of customers, 5,7<7 in Fear 0
+vg" customer growth rate K +vg" sales growth rate
+vg" disposable income, E5@,C/5
07"/ Binancial ;ighlights
;ighlight the #ey financial performance measures, including sales, gross profit, operating profit and net
profit" 6etailed financial statements should be included in the appendices"
15 !"it $trategy
6escribe your plan for e)iting the business and include at least two different options for e)iting the
business"
!"ample2
2i&uidation in times of unrecoverable financial losses"
!he sale and3or transfer of business for cash or future dividends"
A- $tart-up !"penses an& Capital 0e1uirements
B- (onthly Income $tatement
C- (onthly Balance $heet
D- (onthly Cash /lo7 $tatement
!- (onthly /inancial 0atios
/- /i#e-8ear Income $tatement
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Business Plan
9- /i#e-8ear Balance $heet
H- /i#e-8ear Cash /lo7 rom *perations
I- /i#e-8ear /inancial 0atios
:- (anagement Team 0esumes
;- %hotos o <ocation
<- *ther $upporting Documentation
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