Getting Started

Here is a basic outline that will help you prepare and organize your business plan thoughts. It is very important that the content of your plan communicate your intentions and not be the result of what you think a financing source said he would be interested in funding. When submitting your plan consider sending only a 2 to 3 page Executive Summary and a note in the cover letter that lets the recipient know you have more detail available.

EXECUTIVE SUMMARY

A. Description of Business
   Business nature:
   Unique features:
   Market share objectives:
   Industry problems solved:

B. Strategic Direction
   Stage of business:
   Long range direction:

C. Market/Marketing
   Market segment sought:
   Benefit of service to the market segment:
   Summary of advertising policy:
   Sales Projections:

D. Management Team
   Backgrounds:

E. Financial Features
   Capital needed and how it will be used:

F. Financial Arrangements/Exit
   Terms of the deal (equity/capital arrangement):
   Expected annual return for investor:
   Number of investors sought and minimum investment required:
   Buyback, acquisition, public offering or other exit for investor:


I.  BACKGROUND AND STATEMENT OF PURPOSE

IA.  History
     Ia1.  Brief synopsis:

IB.  Current Conditions
     IB1.  Description of product(s)/service(s):
     IB2.  Planned new products:
     IB3.  Technical description of product:
     IB4.  Technical tests performed:

IC.  The Concept
     IC1.  Key success factors:
     IC2.  Unique features of product/service:
     IC3.  Unique aspects of the planned strategy:

ID.  Overall Objectives
     ID1.  Objectives:
     ID2.  Strategic goals:

IE.  Specific Objectives
     IE1.  Revenues/sales:
     IE2.  Profitability:
     IE3.  Market standing:
     IE4.  Product/service degree of quality:
     IE5.  Innovation:
     IE6.  Efficiency/productivity:
     IE7.  Employee morale:
     IE8.  Management development:
     IE9.  Social concern/responsibility:
     IE10. Unique advantages:


II.  MARKET ANALYSIS

IIA,  Market Research
      IIA1. Results of market research studies:

IIB.  Overall Market
      IIB1.  Description of overall market:
      IIB2.  List of leading companies in industry:
      IIB3.  Projected industry sales:

IIC.  Specific Market Segment
      IIC1.  Description of specific target market:
      IIC2.  List of leading companies in specific target market:
      IIC3.  Projected industry sales for this segment:

IID.  Competitive Factors
      IID1.  Description and assessment of leading competitors:
      IID2.  Description and assessment of potential competitors:
      IID3.  List and description of largest clients/customers:
      IID4.  Description and assessment of largest suppliers:
      IID5.  Description and assessment of alternative products/services:

IIE.  Other Market Influences
      IIE1.  Impact of the following:

IIF.  Sales Forecasts
      IIF1.  Sales projections:


III.  DEVELOPMENT AND PRODUCTION

IIIA.  Research and Development
       IIIA1.  Description of competitive technologies:
       IIIA2.  Patent or copyright position:
       IIIA3.  Measures to protect competitive technologies:

IIIB.  Production Requirements
       IIIB1.  Description of production requirements:
       IIIB2.  Competitive advantages in production:

IIIC.  Production Process
       IIIC1.  Description of production process:

IIID.  Quality Assurance/Quality Control
       IIID1.  Description of quality assurance/control procedures:

IIIE.  Contingency Plans for Production


IV.  MARKETING

IVA.  Marketing Orientation
      IVA1.  Description of marketing philosophy

IVB.  Marketing Strategy
      IVB1.  Specific target market sought:
      IVB2.  Overall marketing strategy:
      IVB3.  Image portrayed:
      IVB4.  Pricing strategy/policy:
      IVB5.  Credit policy:
      IVB6.  Channels of distribution:
      IVB7.  Advertising/promotion:
      IVB8.  Warranties/guarantees:
      IVB9.  Branding/packaging/labeling

IVC.  Contingency Plans


V.  FINANCIAL DATA

VA.  Current Financial Position
     VA1.  Summarize highlight of financial statements:
     VA2.  Unusual items on financial statements:

VB.  Payable/Receivable
     VB1.  Debts:
     VB2.  Receivable:

VC.  Cost Control
     VC1.  Monitoring of funds:

VD.  Break-Even Analysis
     VD1. Break-even estimates:

VE.  Financial Ratios
     VE1.  Liquidity:
     VE2.  Profitability:
     VE3.  Leverage/debt:
     VE4.  Activity:
     VE5.  Summary of performance:

VF.  Financial Projections
     VF1.  Assumptions:
     VF2.  Projections:


VI.  ORGANIZATION AND MANAGEMENT

VIA.  Key Personnel
      VIA1.  Organization chart:
      VIA2.  Executive Team:
      VIA3.  Compensation:
      VIA4.  Key managers needed:
      VIA5.  Members of board of directors and their affiliations:
      VIA6.  Other firms assisting:

VIB.  Other Personnel
      VIB1.  Employees hired:
      VIB2.  Staffing/training:
      VIB3.  Profit sharing for employees:

VIC.  Miscellaneous Issues
      VIC1.  Insurance coverage:
      VIC2.  Other Issues:

VID.  Contingency Plans


VII.  OWNERSHIP

VIIA.  Structure of Business
       VIIA1.  Legal form of business:
       VIIA2.  Mergers, consolidations, reorganizations:
       VIIA3.  Franchise, royalty, licensing, and working agreements:

VIIB.  Financing/Equity Considerations
       VIIB1.  Financial features:
       VIIB2.  Names, position of shareholders and percentage of ownership held:
       VIIB3.  Amount of investment by officers and directors:
       VIIB4.  Funding needed:
       VIIB5.  Financing arrangement:

VIII.  CRITICAL RISKS AND PROBLEMS

VIIIA.  Description of Risks
        VIIIA1.  Cost overruns in R&D and production:
        VIIIA2.  Failure to meet production deadlines:
        VIIIA3.  Problems with suppliers and distributors
        VIIIA4.  Sales projections not attained:
        VIIIA5.  Unforeseen industry trends:
        VIIIA6.  Competitive price cutting:
        VIIIA7.  Unforeseen economic, political, social, and technological developments:
        VIIIA8.  Capital shortages:
        VIIIA9.  Cyclical fluctuations:
        VIIIA10. Other risks:


IX.  SUMMARY AND CONCLUSIONS

IXA.  Summary
       IXA1.  Unique features of company/user benefit:
       IXA2.  Overall strategic direction:
       IXA3.  Expected revenues and profits:
       IXA4.  Capital requirements and ownership:

IXB.  Scheduling

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