Sample Business Plans
Sample Business Plans
Sample Business Plans
When it comes to writing a business plan, there is nothing quite as valuable as having a guide to go by, and having quality sample business plans at hand will make the task of writing your business plan a lot easier.
While the exact needs of every business will differ, there are a number of elements that must be part of any type of business plan, and having sample business plans at hand can help any business owner include these essential elements.
The right sample business plans
When seeking out sample business plans it is important to plan carefully and to look at several different sample business plans before deciding on the one you are going to use.
There are many different kinds of sample business plans available, both in books and magazines tailored to the business world and of course on the internet. It is a good idea to look around carefully until you find the sample business plan that best meets your needs.
Using sample business plans from the same or a similar industry is a good idea, as is seeking out sample business plans that match your own style and needs.
Sample business plans as a guide
After you have your sample business plans, it is important to use those sample business plans as guidelines and a starting point. While having sample business plans available will make the job of writing a quality business plan a lot easier, it will not replace the hard work necessary in the formation of your business plan.
It is best to think of the sample business plans as templates and as guidelines, and to use them to create your business plan; that is uniquely suited to your own special areas of expertise.
Sample Business Plan
Executive Summary
The Executive Summary must capture the essence of your proposed business venture. Try to keep the summary as brief as possible. Whether you are preparing this proposal for a venture capitalist, banker, or your boss, it is imperative that your summary be of the highest quality. These individuals are flooded with requests for assistance. Since the summary is a distillation of your plan, you might want to complete this section after you complete the rest of your business plan. Or write the summary first, then create the business plan and then go back to the summary, improve it and insure its consistency with the rest of your plan.
Since your objective is to lure the reader to want more information, your summary should have the following elements:
- It should be concise - you have one or two minutes to tell someone about your business.
- It should be exciting
- It should communicate how your business concept is unique
No matter how long you spent developing and honing your business plan, the reader of the plan will only spend five minutes reading it! It’s important to make those five minutes work to your favor. You may have the most meticulous and well-crafted business plan imaginable - in the end, however, the best plan is the one that entices the reader.
Surprisingly, many business plans neglect to include their formal name, address and principal contact. Please insure that you leave a number that is attended. If the business plan recipient can’t reach you in one or two attempts, they will move on to the next proposal. Make sure this information is on your proposal - there is a prominent location on the front cover to put this information. Feel free to repeat the information in the Executive Summary.
Type of Business
This section answers the question - What business am I in - a non-trivial question. Deciding what business you are in is probably the most important decision you will have to make. Indicate whether the business is a start-up or an existing business.
Company or Business Summary
Here, you can briefly describe the history of the company.
- Is this a startup?
- An expansion of an existing business?
- A division of a larger business that is launching a new product or service?
- Is the business a sole proprietorship, partnership, or corporation?
If your business is a going concern, briefly describe the company’s historical performance. If the company is introducing a new web site or if the web site is a critical component of the business (retailing, business-to-business, virtual community, etc.), briefly describe the web site and any significant future plans for that web site.
Financial Objectives
Clearly state the sales and profitability objectives and the underlying ways that you will meet these objectives. Perhaps a chart from the Business Plan Excel workbook (available free) would visually describe your goals. It is within this section that you can summarize sales and profitability objectives for the five year planning period. Financial goals could be cash flow related, described by financial ratios, by growth rates of sales, assets, cash flow, and profits, or by cost and expense relationships.
Management Overview
Perhaps the biggest keys to success of any business are the people who run it. Be sure to summarize the expertise of the management in this particular business. Since poor management is a key contributor to business failure, describe why the cards are stacked in your favor.
Products and Services
Describe the product or service you are offering and clearly state why the product is unique. If the product is not unique, be sure to explain why it will succeed over existing products.
Funds Requested (optional)
If you are writing this proposal to an audience from which you are requesting funds, be specific in your request. Select a number and explain why that amount is needed. Also state whether the money you are raising is in the form of equity or debt. When you send the proposal to organizations, you can save valuable time by understanding which types of investments they make. Some investment companies do not make any equity investments while others specialize in this investment.
If you are seeking debt financing, be prepared to discuss whether collateral is available. If you are seeking an equity investment, be prepared to discuss the percentage ownership position.
Here are some additional questions to consider when writing this section:
- What is the total amount of funds needed by your business? Is it needed immediately or over the next two to five years?
- What part of this financing is being sought from the investors or lending institution that will receive this business plan (including the amount, terms, and any related security agreement)?
- For equity financing, what percentage of the company are you willing to give up and what is the proposed return on investment and anticipated method of taking out the investor (e.g., buy-back, public offering, sale)?
- For debt financing, what is your company’s proposed interest rate and repayment schedule?
Use of proceeds (optional)
Be as specific as possible on how the proceeds will be spent. Include a chart or table to describe this if you wish.
Exit
If you are requesting funds to grow your business, your investor will want to understand how you are planning your exit strategy. Most investors want to realize a gain over a medium term horizon. Don’t underestimate the time it will take to either take the company public or sell the business. Most investors should be willing to wait for a three-year period before their investment can be realized.
Company Background
The first part of a business plan should clearly define the Identification of Market Opportunity. Be prepared to discuss the total dollar volume of the market, the rate that the market is growing and the overall demand for the product or service that you are offering.
Business History
Give a brief history of the company’s business to date, when your product or service was introduced, and the key milestones that you have met. Be sure to keep this section brief, since your investor is primarily concerned about the future, not the past. Some of the information you might include in this section could be:
- The firm’s date of origin.
- The names of the founders.
- A summary of the major milestones achieved or the stages of the life cycle through which the firm may have passed.
- The major episodes or stages of development in the firm’s past.
- A brief description of any significant changes the business has undergone or challenges that the company has faced up to.
- Other developmental indicators such as sales levels, net worth, market share, assets, and company valuation.
Company mission statement.
Growth and Financial Objectives
The objectives in your business plan can begin with a short list of what you hope to achieve in the next year or so and those significant goals that you would like to achieve in later planning periods. Objectives will vary according to your mission statement and where your company is in the life cycle. For example, a start-up company might want to set a short-term objective of profitability (to be profitable by year-end) or may take a longer-term view and simply look to build a competitive business model by the end of year one.
Then you might want to explain how you plan to keep certain financial metrics to clearly portray your goals.
Legal Structure and Ownership
Describe how the company is legally organized. This is a decision that is best made in the early stages of the company. The decision to establish your company as a sole proprietorship, a partnership or a corporation that will issue stock is an important one. You may want to consult with an attorney and/or accountant before doing this.
Company Location and Facilities
State where the company conducts its business and what real estate the company owns or leases. Be sure to address the issues regarding your future space requirements and how this might determine your need to expand or move.
Name and/or address of your facility - Here you can briefly describe the facility and location. Use copy and paste if you have additional locations.
Plans for Financing the Business
Investors prefer to see a defined financing proposal which shows the capital needs of the venture and the proposed equity or debt agreement. The financing proposal may refer to the Start-Up Costs that are attached in the appendix if it is a start-up. If the company is a start-up, or an ongoing concern, be sure to detail the use of the proceeds from the financing. What collateral or personal guarantees will be offered for an equity or debt investment?
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