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5

CONTENTS

HOW TO READ THIS BOOK

USING THIS WORKBOOK:

INTRODUCTION

WORKBOOK OBJECTIVES

WHY YOU NEED TO WRITE A BUSINESS

PLAN

TO PLOT THE COURSE

TO CREATE A FEASIBILITY STUDY

BECOME A BETTER DECISION MAKER

FOR A REALITY CHECK

GUIDE & MEASUREMENT TOOL

SELLING TOOL

CHECKLIST FOR COMPLETING THE

WORKBOOK EXERCISES

BUSINESS PLAN RESEARCH

WHAT TYPES OF INFORMATION TO GATHER: 1

1. Primary Data Sources:

2. Secondary Data Sources;

BUSINESS PLAN OUTLINE

1. EXECUTIVE SUMMARY:

2. COMPANY PROFILE

3. MARKETING PLAN

A. Industry Overview

B. Product/Service

C. Target Market

D. Competitive Analysis

E.1 Promotional Strategy

E.2. Place (Distribution strategy)

E.3. Pricing Strategy

E. 4. Product/Service

OPERATIONAL PLAN

MANUFACTURING PLAN

HUMAN RESOURCES

THE MANAGEMENT TEAM

FINANCIAL PLAN

2

FINANCIAL STATEMENTS

1) Cash Flow Statement:

2) Balance Sheet:

3) Income Statement:

ACTIONS

3

Using this WorkBook:

o Think through your ideas.

o Print out the BP Chef Workbook, make notes on this form or jot your thoughts into a notebook o Organize your communication into the business plan components

o Simply create your formal business plan to get the best funding for your venture!

4

Introduction

The Bplan Chef Workbook contains extensive

guidelines, structure and template for working through the components of a business plan, and to ultimately create a successful business plan.

It is aimed squarely at new and established businesses seeking to expand, raise finance etc., which need to produce a comprehensive business plan for

internal/external use.

The Bplan Chef Workbook is intended as an exercise book for sophisticated entrepreneurs as well as for some small businesses.

The Workbook Exercises of writing and thinking through your business requirements are as important as the final business plan document. This section is intended to allow you to challenge your assumptions, and produce a rough format with which to guide the creation of your business plan. You will use the notes from this workbook, as a reference for when you create your formal business plan.

Follow through the business plan outline questions and write your responses on a separate piece of paper.

Our purpose is to communicate with you, to help you take ownership of your work. Use your own style. It 5

should be a personal expression (an art form) as much as a professional document (scientifically and structurally sound).

6

Workbook Objectives

• To understand what is a business plan

• Why you need a business plan

• Where to start

• How to write an effective business plan

• How to ultimately use a business plan to create your venture

7

Why You need to Write

a Business Plan

To Plot the course

• To create the “big picture” - to recognize long term direction and think about staying in

business and not just starting a business

To Create a Feasibility Study

• Test the viability of your idea

• Is it going to be profitable

• What kind of financing will you need

• Recognize the barriers to your success

Become a Better Decision Maker

• Anticipate problems

• The process of gathering information ahead of time will allow you to make more informed

decisions

• Your plan will provide you with an organized way to face issues

For a Reality Check

• The plan will challenge some of your pre-conceived assumptions

8

• Your plan will raise questions that will inspire solutions before you need face those problems

• It allows you to recognize what will be required of you

• Identifies your strengths and weaknesses and highlights needed areas of assistance

A Business Plan is like having a map.

Without a map you can still get by in your

travels, but you can appreciate how much

easier it is, when you know where you are

going once you hold one in your hand.

-- A. Mirkovic, PostIdea.com

Guide & Measurement Tool

• The Business Plan will act as guide throughout your development and allow you measure your progress against planned expectations. You can make adjustments accordingly.

Selling Tool

The Business Plan is the document ultimately needed to sell your venture as an investment opportunity to potential investors and partners ( see

www.postidea.com) and to your own suppliers, and

employees.

9

Checklist for completing

the workbook exercises

View Samples of business plans if you can, to get an idea of the type of structure you will need to create;

Prepare a timeline (how much time you will

commit to the project and the completion date) Define the potential audience for you business plan (investors, suppliers, or employees)

Gather research on your industry, on similar businesses, your particular location, type of business, sector, market, etc.

Organize the research into easily referenced sections\

Write the plan

o Use clear vocabulary, appropriate for your audience

o Avoid unneeded jargon

o Note to stress your plan is of quality and not just quantity

o Be confident, it will show in your writing style 10

index-17_1.png

By taking the time to go through the exercises

ahead of time, you will be able to confront and deal

with challenges of creating a successful business

plan. In the end you will write a more effective

business plan and actually complete it in less time

than if you just began writing it on your own!

11

Business Plan Research

Before you begin writing within the following section, Business Plan Outline, make sure that you have done some research. Business Plan Research helps you make informed decisions and create a successful direction for your business plan.

Gather information sources

Record relevant information

Analyze the information you have gathered and note the associated opportunities and risks What types of information to gather:

1. Primary Data Sources:

o Focus Groups

o Questionnaire/Survey

o Product or Service Sampling

2. Secondary Data Sources;

o Associations

o Newspapers, Magazines, Periodicals

o The Internet

o Industry Directories

o Economic Development Departments

o Etc.

12

Business Plan Outline

Note that there are many different types of Business Plan formats. The layout is dependant upon the type of business, purpose of the plan, readership, etc. You may choose to add some more sections to this outline or ignore some others, but the basics are listed below: 1. Executive Summary

What is an Executive Summary? The

Executive Summary is the one to two

page introduction of your business plan.

It describes the opportunity and proves

that any investment in the venture will

provide a good return.

Why is it important: To capture interest and support from the reader. Based on

the Executive Summary an investor will

make up his/her mind whether or not to

read more about the opportunity.

13

2. Company Profile

What is a Company Profile? The Company Profile provides a snapshot of your business, and who is involved in it. This is an

important page for a perspective investor as he/she can scan the type of business,

commitment level and involvement from this

one page.

Why is it important? It is the follow up section to the Executive Summary, providing an overall impression of the business

Suppliers and potential partners are often

interested in this page.

3. Marketing Plan

o Industry Trends

o Product/Service

o Target Market

o Competitive Analysis

o Marketing Mix

Marketing Plan

A. Industry Overview

B. Product/Service

C. Target Market

D. Competitive Analysis

E. Marketing Mix

E.1. Promotion

E.2. Place

E.3. Price

E.4. Product

14

4. Operational Plan

5. Management Team/Human Resources

6. Financial Plan

a. Start up costs

b. Cash Flow Statement

c. Income Statement

d. Balance Sheet

7. Conclusion/ Actions

15

The following pages contain the remainder of the Business Plan Outline section of the workbook. Be sure to have done some research before beginning the exercises. Simply use point form descriptions if you like. Once you have gone through all of the sections of the Outline, you will be ready to begin your formal Business Plan!

Let’s get started.

16

1. Executive Summary:

(Draft)

Answer the question of “what business am I in?”

____________________________________________

____________________________________________

Marketing Highlights:

Distinctive features of the Product/Service ____________________________________________

____________________________________________

Target market Summary

____________________________________________

____________________________________________

Competitive Analysis

____________________________________________

____________________________________________

Key marketing strategies

____________________________________________

____________________________________________

Operational Highlights:

Critical legal issues related to your particular venture ____________________________________________

____________________________________________

Management team overview - critical roles and pertinent skills

17

____________________________________________

____________________________________________

Is it an independent business, franchise, expansion, takeover, etc?

____________________________________________

____________________________________________

Who will be your major suppliers, and what are the current or proposed relationships with them: ____________________________________________

____________________________________________

Financial Highlights:

Summary of financial requirements and projections ____________________________________________

____________________________________________

What is the equity that you and any partners have invested in the venture?

____________________________________________

____________________________________________

18

2. Company Profile

(Draft)

Form of Business:

Sole Proprietorship

Partnership

Corporation

Franchise

Owners/ Principals

____________________________________________

____________________________________________

Name of Business

____________________________________________

____________________________________________

What is the start date of the business?

____________________________________________

____________________________________________

Business Operation (F/T or P/T, operating hours) ____________________________________________

____________________________________________

Business Description

(What is your product or service, & business type) 19

____________________________________________

____________________________________________

Location

____________________________________________

____________________________________________

Contact Information (tel, fax, http address, email) ____________________________________________

____________________________________________

Business Advisors

(Include Lawyers, Accountants, Consultants, etc.) ____________________________________________

____________________________________________

____________________________________________

____________________________________________

20

3. Marketing Plan

A. Industry Overview

What is the Industry Overview? This section provides a synopsis for the reader about the industry and general economy that your business will be operating in.

Note trends, characteristics, etc. from which you can later justify opportunities or risks.

Note any trends, legislation or changes within the following categories from which your business will ultimately benefit from:

Social Change

____________________________________________

____________________________________________

____________________________

Technological Change

____________________________________________

____________________________________________

____________________________

Political Change

____________________________________________

____________________________________________

____________________________

Demographic Change

____________________________________________

____________________________________________

____________________________

21

Economic Change

____________________________________________

____________________________________________

____________________________

Environmental Change

____________________________________________

____________________________________________

____________________________

Consider the trends and how they relate to your venture. What are the key success factors of your business, which will allow you to benefit from these trends?

____________________________________________

____________________________________________

____________________________

____________________________________________

____________________________________________

____________________________

____________________________________________

____________________________________________

____________________________

____________________________________________

____________________________________________

___________________________

What are the barriers to entry for this industry? Is the size of the industry large or small? Are the costs to enter the market high or low? Is it based on technological advantage or supplier relationships?

____________________________________________

____________________________________________

____________________________

22

____________________________________________

____________________________________________

___________________________

____________________________________________

____________________________________________

____________________________

23

B. Product/Service

What the Product/Service section describes: This section describes the features and benefits of the product or service that you are selling. It defines the product function, how it will be used, what is the new feature that it brings to market, etc.

Note that this is your initial definition of your product/service, and most likely this will evolve, as does your business. So be sure to capture the core of what you are offering and keep the description clear and concise.

Stress the uniqueness of your product. This is the feature that differentiates your product. That is, the advantage that your product has over the competition.

What are your product or service’s unique features?

____________________________________________

____________________________________________

What are the value added features to the end user?

____________________________________________

____________________________________________

Are there any complimentary products/services that your product is dependant upon? What are they if any?

____________________________________________

____________________________________________

How is your product/service positioned against the competition?

____________________________________________

____________________________________________

____________________________________________

____________________________________________

What are you doing differently from what is on the market currently?

24

____________________________________________

____________________________________________

____________________________________________

____________________________________________

How has this product/service or a similar product performed in the market?

____________________________________________

____________________________________________

____________________________________________

____________________________________________

Provide further descriptions of the product/service (Pictures, specifications, diagrams, complimentary features to related products/services, functionality description, design components, etc.)

25

C. Target Market

Why is the target market information

important? This is the group of people or businesses that is willing to pay for your

products/businesses.

Knowing your target market profile helps you make critical decisions form marketing, as well as for your cash flow projections, recognizing how many people are willing to purchase your goods/services.

Consumer Demographics:

Age Range _______________________________

Income Range _____________________________

Gender ___________________________________

Marital Status ______________________________

Dependants _______________________________

Occupation ________________________________

Location __________________________________

Average purchase value ($) ___________________

Frequency of purchase ______________________

Consumer Psychographics:

Lifestyle Description ___________________________

What need in their lifestyle does your product fill? ____

____________________________________________

26

What are the major influencers on their choice to purchase? ________________________________

Are there any demographic or market shifts occurring?

Is this market declining, growing or steady?

_________________________________________

_________________________________________

What is the size of this target market? ___________

_________________________________________

How much of this market can you capture in 6 months?

____%

How much of this market can you capture in 5 years?

____%

Are there any secondary target markets that will have a need filled by your product or service? ____

If yes, what are the characteristics of that target market? __________________________________

_________________________________________

27

D. Competitive Analysis

Why is a Competitive Analysis is important?

This section highlights the competitive landscape for your business, identifies strengths & weaknesses of competitors and provides insight into the price, market and differentiation points.

It can provide you with an overview of why your strongest competitors have been successful and identify information on the market such as

general likes & dislikes

Recognize that you also have Indirect

competitors; although they are not providing the same service, they are competing for the same consumer’s dollars.

Direct Competitors:

_________________________________________

_________________________________________

Hours of Operation ________________________

_________________________________________

Years in Business _________________________

_________________________________________

Product/Service Description ________________

_________________________________________

Customer Profile __________________________

_________________________________________

Pricing __________________________________

28

_________________________________________

Marketing/Advertising _____________________

_________________________________________

Strengths/Weaknesses (Why do customers buy from them? Why would they switch possibly?) ________

_________________________________________

_________________________________________

_________________________________________

Opportunities for your Business given this competitive landscape

_________________________________________

_________________________________________

What have you learned from their operations?

_________________________________________

_________________________________________

Indirect Competitors: Make a list of your indirect competitors. What are their characteristics?

Why would their customers choose to switch to purchasing your products or services?

29

E.1 Promotional Strategy

What is the Promotional Strategy? This is the method you choose to communicate with your

target market.

The promotional strategy plays an integral role in the awareness, trial and adoption rates of your product or service.

It is a critical link in the overall marketing strategy. As well it will have a direct impact on cash flow, so timing and planning are crucial.

Keep this in mind when you are making jotting notes for this section.

For each of the potential promotion channels listed below create a table to consider:

Costs

Readership

Target Market Profile

Distribution

coverage

Distribution

frequency

Type of distribution used within the channel Potential Promotion Channels:

Affiliate Programs (online)

Banner Advertising (online)

Business

Cards

Billboards

Contests

Co-op

Advertising

30

Coupons

Cross-promotion

with

complimentary products

Cross-merchandising

Direct

Mail

Flyers

Giveaways

Magazines

Personal

Selling

Radio

Sponsorship of related events

Television

Trade

magazines

Yellow

Pages

31

E.2. Place (Distribution strategy)

What does “Place” cover ? This section describes “how” and “where” you will sell your products/service.

You should showcase any market research you have conducted to add credibility to your claims in this section.

You can have as many distribution channels as you like, simply make sure to detail each one.

Note: You should match your distribution channels to the buying patterns of your target market. - Eg. If your target market is most likely to purchase software from a store just as soon as purchasing it online, you should describe the distribution approach for retail sales as well as online initiatives and the related costs, and advantages.

What is the location of your business:

_________________________________________

_________________________________________

Why have you chosen this location?

_________________________________________

_________________________________________

What are the marketing advantages of this location:

_________________________________________

_________________________________________

32

Distribution advantages (if any):

_________________________________________

_________________________________________

What are the costs associated with this location: _________________________________________

_________________________________________

What are the potential traffic flows from this location:__________________________________

_________________________________________

_________________________________________

________________________________________

Where else can your product or service be purchased: ______________________________

_________________________________________

_________________________________________

___________________________________

What are the associated costs:

_________________________________________

_________________________________________

What are the marketing advantages?

_________________________________________

_________________________________________

Are there any other methods of distribution you currently have or will use in the future?

_________________________________________

_________________________________________

Be sure to note the effects on service quality, promotion, and timing with all of your above suggested distribution methods and locations.

33

E.3. Pricing

Strategy

What does “Pricing” cover ? The pricing of your product/service is the fee that you will charge to the customer. This is a number that will be based on your costs, competition, and customers’ perceived value for your product or service.

The pricing strategy should provide with a

desired profit level, and should be consistent with the positioning of the product/service in the market.

The general categories of costs for a service or a product as follows;

Pricing a Product:

Pricing a Service

Labor ____

Labor

____

Overhead ____ Overhead ____

Materials ____

Materials ____

Your desired profit margin will be based on the pricing strategy you choose to follow. Here are some considerations:

retail cost and pricing

competitive position

pricing below competition

34

pricing above competition

price lining

multiple pricing

Is your target market price sensitive?

Low ___

Med ___

High ___

How important is value to the customer? Will the price reflect the perceived value of the product?

____________________________________________

____________________________________________

Will you be discounting the price on a regular basis? (for ongoing sales, retailer sales discounts, distribution discounts, sales agent discounts, volume discounts, etc.)?

____________________________________________

____________________________________________

What will be your Break-Even point?

____________________________________________

____________________________________________

Note:

Break Even Point =

Fixed Costs

Unit selling price -Unit Variable costs

Unit Selling Price: is the price per unit at which you will sell your service/product

35

Unit Variable Costs: Costs that you only incur if you are producing a unit.

Fixed Costs: These are costs that you incur regardless of how many units your produce (eg. Rent, Property tax, Telephone, etc.)

36

E. 4. Product/Service

In addition to section “B” of this workbook, consider the following points as well, and do your best to define them:

Image What kind of image do we want to have (such as cheap but good, or exclusiveness, or customer-oriented or highest quality, or convenience, or speed, or what exactly)?

____________________________________________

____________________________________________

Features

List the features that you wish to emphasize: a. ____________________________________

b. ____________________________________

c. ____________________________________

d. ____________________________________

Weigh the Benefits vs. Features:

These points are known as the 6 “O’s” of consumer behavior:

ORIGINS of purchase: Who buys it?

OBJECTIVES of purchase: What do they need/buy?

OCCASIONS of purchase: When do they buy it?

OUTLETS of purchase: Where do they buy it?

37

OBJECTIVES of purchase: Why do they buy it?

OPERATIONS of purchase: How do they buy it?

____________________________________________

____________________________________________

____________________________________________

____________________________________________

Also make note of the type of marketing positioning you will follow:

Market Leader vs. Follower

Price vs. Quality

Innovator vs. Adaptor

Customer vs. Product

International vs. Domestic

Private Sector vs. Government

38

Operational Plan

What is the Operational Plan: Defines how all tasks will be accomplished. It should cover the suppliers you will use, execution strategies and manufacturing plans.

Development Synopsis: Here you can briefly outline the design and development plans, an overview of the strategy details for taking your venture from concept to reality.

What is the current status of product/service/website development?

_________________________________________

_________________________________________

When is the proposed "finish" date of development?

What obstacles, if any, must the company overcome in this process? What specific tasks must be completed?

_________________________________________

_________________________________________

_________________________________________

_________________________________________

39

Who, if anyone, outside the company will be involved?

_________________________________________

_________________________________________

_________________________________________

_________________________________________

How will you protect your company’s company proprietary information/technology or competitive advantage?

_________________________________________

_________________________________________

_________________________________________

_________________________________________

List your suppliers. Rate them on a scale of 1 to 5, with 5 being the most reliable. Briefly state their terms and conditions if you know them as well as pricing and trade discounts.

For example consider the following format: Supplier + Reliability (1 - 5) + Price + Discount terms

+ + +

+ + +

+ + +

+ + +

List additional rules and regulations, tax

considerations that your business will be subjected for 40

all levels of government as well as industry specific issues that you are aware of.

………………………………………………………………

………………………………………………………………

……………………………………………………………

41

Manufacturing Plan

Why is the manufacturing plan included with Operations? The Manufacturing plan outlines the process and resources needed to create your product or service. The manufacturing plan will highlight the impact the production process has on your physical location, equipment

requirements, human resources, time lines, and licensing.

What is your production methodology? What is the production process for your product or service?

_________________________________________

_________________________________________

Provide a list of the costs associated with this process. Include direct and overhead costs. These notes will be valuable for your formal business plan.

_________________________________________

_________________________________________

What are the research and development

requirements? What are the timelines and costs associated with this?

42

_________________________________________

_________________________________________

What are your requirements for equipment, plant and storage facilities? What will be the approximate costs associated with this?

_________________________________________

_________________________________________

Will you be working with any sub-contractors, value-added resellers, etc.? What are the quality control provisions you propose?

_________________________________________

_________________________________________

_________________________________________

_________________________________________

Do you or will you have trademarks or patents on any of your products/services? If yes, please provide details.

_________________________________________

_________________________________________

43

Human Resources

Why is the Human Resources component

important? This section provides an overview of the people that will run the business. You need to consider the expertise levels you are bringing in, at what cost, and identify the areas of need.

A strong management team is of utmost importance to investors, as is the recognition that where skill gaps exist, you have developed a plan to fill in the “gaps” with the appropriate staff to make it happen!

The Management Team

Demonstrate that your company has the required human resources to be successful. Below you will outline & introduce your team with full resumes including information on existing board members and advisors.

Who are the key management personnel and what are their backgrounds?

_________________________________________

_________________________________________

_________________________________________

_________________________________________

Who are the other investors and/or shareholders, if any?

44

_________________________________________

_________________________________________

Who comprises the Board of Directors and/or Board of Advisors?

_________________________________________

_________________________________________

_________________________________________

_________________________________________

Who are the professional advisors (e.g., lawyer, accounting firm)?

_________________________________________

_________________________________________

Staff

Provide a job description of any staff required, note their a) responsibilities, b) F/T, P/T or contract status, c) Salary, d) benefits, & e) skill set.

So for example, create a table that looks something like this:

Role #1

a) …………………………………………………….

…………………………………………………….

b) …………………………………………………….…

……………………………………………….

45

c) …………………………………………………….…

……………………………………………….

d) …………………………………………………….…

……………………………………………….

e) …………………………………………………….…

……………………………………………….

Role #2

a) …………………………………………………….

…………………………………………………….

b) …………………………………………………….…

……………………………………………….

c) …………………………………………………….…

……………………………………………….

d) …………………………………………………….…

……………………………………………….

e) …………………………………………………….…

……………………………………………….

Role #3

a) …………………………………………………….

…………………………………………………….

b) …………………………………………………….…

……………………………………………….

c) …………………………………………………….…

……………………………………………….

46

d) …………………………………………………….…

……………………………………………….

e) …………………………………………………….…

……………………………………………….

Role #4

a) …………………………………………………….

…………………………………………………….

b) …………………………………………………….…

……………………………………………….

c) …………………………………………………….…

……………………………………………….

d) …………………………………………………….…

……………………………………………….

e) …………………………………………………….…

……………………………………………….

Role #5

a) …………………………………………………….

…………………………………………………….

b) …………………………………………………….…

……………………………………………….

c) …………………………………………………….…

……………………………………………….

d) …………………………………………………….…

……………………………………………….

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e) …………………………………………………….…

……………………………………………….

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Financial Plan

Why is the Financial Plan important? This section provides your prospective investor with the facts and figures of your venture. What are the costs associated with your business, what is the marginal profit. Do you have a secure path to grow your business, financed by cash flow or debt financing? What is the time line within which the investor can expect to earn his returns?

Sound financial management is one of the best ways for your business to remain profitable and solvent. In this section you think through some of the general issues you will have to address in your formal business plan.

To effectively manage your finances, plan a sound, realistic budget by determining the actual amount of money needed to open your business (start-up costs) and the amount needed to keep it open (operating costs).

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The start-up budget

Your operating budget

should allow for these

also should include

expenses.

money to cover the first

three to six months of

Start-up Budget

operation. It should allow

personnel (costs prior

to opening)

for the following

expenses.

legal/professional fees

Operating Budget

• occupancy

• personnel

licenses/permits

• insurance

equipment

• rent

insurance

• depreciation

supplies

• loan payments

advertising/promotions

• advertising/promotion

salaries/wages

• legal/accounting

accounting

• miscellaneous

income

expenses

• utilities

• supplies

• payroll expenses

• payroll expenses

• salaries/wages

• utilities

• dues/subscriptions/fees

• taxes

repairs/maintenance

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Prepare a list with the associated costs within each section. These figures should be based upon research you have conducted or can put forth based on experience or familiarity with the industry/ market, etc.

Note that an operating budget is prepared when you are actually ready to open for business. The operating budget will reflect your priorities in terms of how to spend your money, the expenses you will incur and how you will meet those expenses (with revenue or debt).

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Financial Plan

Financial Statements

1) Cash Flow Statement

2) Balance Sheet

3) Income Statement

1) Cash Flow Statement:

- the actual money that is collected from sales and the money that is paid out for expenses during each month.

What does a Cash Flow Statement provide?

The Cash Flow statement takes the predictions and estimates that you draw in your business plan, and transfers them to a comprehensive financial statement. A statement in which you can analyze total monthly cash receipts minus expenses.

It highlights potential problem areas in payment terms, etc., so that you can determine whether you or not you will be able to draw funds from the business.

List your sources of Cash income:

Sales: ___________________________

Loans:

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Investments:

List your sources of Disbursements:

Monthly

expenses:

Start-up

Costs:

When you are making your notes consider the effects of seasonality, promotions, discounts and payment terms on your monthly cash flow.

Your Cash Flow statement totals should look like this: Cash Receipts

+ Month A

Month B

Month C

Sales

+

+

+

+

Loans

+

+

+

+

Investments

+

+

+

+

Total Receipts

+

+

+

+

+

Disbursements

+

+

+

+

Wages

+

+

+

+

Advertising

+

+

+

+

Insurance

+

+

+

+

Rent

+

+

+

+

Etc.

+

+

+

+

Total Disbursed

+

+

+

+

Total Receipts After Disbursements

+

+

+

+

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2) Balance Sheet:

shows the financial picture of your business at a certain point in time, highlighting that which you own vs.

what you owe.

What do the Balance Sheet and Income

Statement show? The Balance Sheet displays your liquidity to an investor.

The Income Statement displays your profitability over a certain period of time as well as the effect taxes have on your overall performance.

Note the components of a balance sheet. List the assets on the left side and the debts/liabilities on the right.

Balance Sheet

Current Assets

Current Liabilities

_______________

__________________

_______________

__________________

_______________

Long

Term

Liabilities

Fixed

Assets

___________________

______________

___________________

______________

___________________

Other

Assets

Total

Liabilities

______________

___________________

Total

Assets

Shareholders

Equity

===============

==================

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Shareholders Equity = Total Assets - Total Liabilities 55

3) Income Statement:

shows the profit or loss of your business over a certain period in time.

List the Income for a period of time first, and then the expenses over that same period of time.

Income Statement

Revenue

(Sales)

Total

Revenue

Expenses:

Variable

Expenses

Fixed

Expenses

Total

Expenses

Profit (Loss)

============

(Taxes

owed)

Profit (loss) after Taxes

=============

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Actions

Congratulations! You have worked through and itemized some of the general considerations for your business. You have probably confronted some issues that have drawn attention to weaknesses as well as highlighted some opportunities by going through this exercise.

Now that you have your notes in hand and stronger understanding of how to organize and craft a business plan, you can move onto creating your formal business plan!

Although you are well equipped to begin building your own business plan, there are still other resources to help you bring your business to reality with greater success. To help you in your entrepreneurial endeavors we would like to suggest some of the following options:

For Business Plan Reviews visit

http://www.bplanresources.com

For Professional writing services or full business plan templates visit us at

http://www.bplanresources.com

For access to immediate funding visit

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answers, and give them the go ahead to create a polished business plan to knock the socks right off of an investor and increase your chances for funding.

57

2. Create your business plan and have it reviewed by professional consultants. You will receive a complete review within a week of the date

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=============================

Good Luck and Best Wishes for success.

the Business Plan Chef

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