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::::::::::::::::::::::::::::::::::::::::
: :
: Copyright (c) 1992, David A. Works :
: All Rights Reserved :
: :
: This is NOT free software. This is :
: NOT public domain software. This :
: is shareware: you are expected to :
: pay a registration fee to the :
: author of this program if you find :
: find it useful. See registration :
: details in the REGISTER.ME file :
: :
::::::::::::::::::::::::::::::::::::::::
PLEASE READ
"USER'S GUIDE"
Registration has great benefits:
1. User's Guide
2. Latest version of Business Plan Master
3. Bonus diskette
Business Plan Master
USER'S GUIDE
David A. Works
Grand Universal
7061 East Wesley Avenue
Denver, CO 80224
_______
____|__ | (R)
--| | |-------------------
| ____|__ | Association of
| | |_| Shareware
|__| o | Professionals
-----| | |---------------------
|___|___| MEMBER
HOW TO REGISTER BUSINESS PLAN MASTER(tm):
There are several different ways to register BUSINESS PLAN MASTER.
Please use whichever method is most convenient for you. In all
cases you will receive the latest version available at the time your
order is received. Read the sections that follow and the
registration forms below for other benefits of registration.
-BASIC REGISTRATION-
Latest Version Of Business Plan Master
Technical support (minimum 3 months) via regular mail,e-mail
(via the online services listed below), or phone.
SPECIAL OFFERS:
Registered Users of BUSINESS PLAN MASTER are entitled to receive a
discount on a subscription to Shareware Magazine. The regular
yearly subscription rate of $14.95 is reduced to just $9.97. A
toll-free number and special Order Number will be provided upon
registration. CompuServe: full details about a special offer for
CompuServe will also be provided. The offer provides for FREE sign
up, a $15.00 usage credit and a complimentary subscription to
CompuServe Magazine.
**PROFESSIONAL REGISTRATION**
USER'S GUIDE
A complete printed User's Guide will be included with all
registrations.
BONUS DISKETTE:
Also included with the registered version diskette will be
another diskette with exceptional business and productivity
programs.
COUPON FOR ONE FREE UPGRADE
Included in your registration packet will be a coupon good
for one free upgrade.
REGISTER DIRECTLY WITH THE AUTHOR:
You can mail the completed Author Registration Form with
payment to Grand Universal at the address below. Please
include any comments about BUSINESS PLAN MASTER with your
order.
REGISTER THROUGH PsL:
If you prefer, you can register BUSINESS PLAN MASTER with
MasterCard, Visa, American Express, or Discover through the Public
software Library by calling 800-242-4775 or 713-524-6394 or by FAX
to 713-524-6398. Do not call PsL with any questions about the
status of the shipment of the order, technical support, etc; these
questions must be directed to Grand Universal.
BUSINESS PLAN MASTER(tm) v1.3: AUTHOR REGISTRATION FORM
Use this form to register your copy of BUSINESS PLAN MASTER and
order the latest version directly from the author.
NAME: ___________________________________________________
COMPANY: ___________________________________________________
ADDRESS: _________________________ CITY/TOWN: ______________
STATE/PROV: ___________ ZIP/CODE: _________ COUNTRY: __________
TELEPHONE: ___________________DISK SIZE: 5.25" ____ 3.50" ____
HOW DID YOU FIRST LEARN OF BUSINESS PLAN MASTER ? _____________
HOW DID YOU GET THE EVALUATION COPY ? _________________________
----------------------------------------------------------------
QTY DESCRIPTION PRICE TOTAL
----------------------------------------------------------------
BASIC: latest version of BUSINESS PLAN MASTER,
upgrade notices, other Grand Universal
___ programs, CIS/Shareware Mag. offers $34.00 ___.00
PROFESSIONAL: above, plus includes a Printed
User's Guide, a coupon for 1 FREE upgrade,
___ BONUS diskette $44.00 ___.00
Shipping and Handling:
BASIC: $4 US (1st class), $6 overseas (air) __.00 ___.00
___ PROFESSIONAL:
$4 US (1st class), $10 overseas (air) __.00 ___.00
___ Shipping and Handling for each over quantity 1 1.50 ___.00
TOTAL: ___.00
___ 5.25" Disk ___ 3.50" Disk
INVOICE.DOC contains an invoice which can be given
to your purchasing department to ease ordering.
Volume discounts are available, please contact us.
Grand Universal CompuServe 70400,153
David A. Works Delphi DAVIDWORKS
7061 East Wesley Avenue GEnie D.WORKS3
Denver, CO 80224 America OnLine DAVIDW2959
(303) 756-2175
Table of Contents
_____________________________________________________________
Introduction . . . . . . . . . . . . . . . . . . . . . . . . 1
Requirements . . . . . . . . . . . . . . . . . . . . . . . . 2
Usage. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Files. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Using Business Plan Master . . . . . . . . . . . . . . . . . 4
BPM Historical Financial Worksheet . . . . . . . . . . . . . 4
BPM Proforma Worksheet . . . . . . . . . . . . . . . . . . . 6
Break Even Worksheet . . . . . . . . . . . . . . . . . . . .12
Business Plan Master(tm) . . . . . . . . . . . . . . . . . .13
Title Page . . . . . . . . . . . . . . . . . . .13
Table of Contents . . . . . . . . . . . . . . . . . . .13
Executive Summary . . . . . . . . . . . . . . . . . . .13
The Management. . . . . . . . . . . . . . . . . . . . .14
[Your Company] History. . . . . . . . . . . . . . . . .15
Objectives. . . . . . . . . . . . . . . . . . . . . . .15
Our Competitive Advantages. . . . . . . . . . . . . . .16
Pricing . . . . . . . . . . . . . . . . . . . . . . . .17
Specific Markets. . . . . . . . . . . . . . . . . . . .17
Targeting New Markets . . . . . . . . . . . . . . . . .18
Location. . . . . . . . . . . . . . . . . . . . . . . .18
Manufacturing Plan. . . . . . . . . . . . . . . . . . .18
Research & Development. . . . . . . . . . . . . . . . .19
Historical Financial Data. . . . . . . . . . . . . . . . . .19
Proforma Financial Data. . . . . . . . . . . . . . . . . . .19
Proforma Cash Flow Analysis . . . . . . . . . . . . . .20
Income Statement. . . . . . . . . . . . . . . . . . . .20
Balance Sheet . . . . . . . . . . . . . . . . . . . . .21
Ratio Analysis. . . . . . . . . . . . . . . . . . . . .21
Financial Standards . . . . . . . . . . . . . . . . . .21
Breakeven Point. . . . . . . . . . . . . . . . . . . . . . .21
Use of Money . . . . . . . . . . . . . . . . . . . . . . . .21
Business Plan Master - User's Guide
-----------------------------------
Introduction
____________
Back in my younger days, I ran a small importing company.
One of the sayings we used to pass around was "We may not be
making any money, but we sure have fun!" Unfortunately that was
very true. As a young kid out of college, it was a great thrill
to drive all over the country, seeing new sights and having the
impression that I was making a lot of money. But I wasn't, and
it took me many years to discover why I didn't make money.
As foolish as it might sound, I recently attempted to
re-enter the same market but in a different way. This time I
put down my plans in writing. I found it to be a lifesaver! I
originally had hoped to raise outside capital but that was not a
realistic proposition. I eventually gave up on the idea before
investing much money in it. The point I am making is this - I
wouldn't have known when to quit if I hadn't had my ideas, plans
and assumptions in writing.
Even though I tried to raise money, I soon learned that the
value of the plan far exceeded all the hype I originally was
advised to include (through various books and consultants) to
impress outside investors. I ended up writing the plan just for
ME and found that others liked it better that way.
Now I am involved with several businesses and spend a fair
amount of time helping other businessmen. I owe a lot of my
current success to my original business plan and the discipline
it brought into my business life.
Every business needs a business plan and every business
needs to keep their business plan current. It will be your road
map to reach your goals and your guide to achieving what you
want.
David A. Works
Business Plan Master Page 1 User's Guide
Business Plan Master - User's Guide
-----------------------------------
Requirements
_______________________________________________________________
In order use "Business Plan Master(tm)" you will need:
* An IBM PC or compatible
* A word processing program
* Lotus 1-2-3 v. 2.2 or greater or any spreadsheet
program which can import Lotus *.WK1 files.
Optional:
* WordPerfect 5.1 (for *.WP pre-formatted file)
* Laser printer (fonts are nice too!)
* Spelling checker
* Grammar checker
* Thesaurus
Usage
______
A good business plan is clear and concise and lays out your
goals and plans. Good writing takes time and preparation. To
save time, I have designed "Business Plan Master(tm)" to be used
verbatim.
I recommend that you use your business plan as a guide for
your business. Refer to it often to check your progress.
Update it periodically. I recommend annually or semi-annually.
Keep your old copies for future reference.
Here are some ideas to get the most out of "Business Plan
Master":
* Get a copy of the "User's Guide". You can print this
file out or register at the *Professional* level and I
will send you one. You may find it useful to print out
the other files as well as they are lengthy (also
included in the registration package.
* Work only on copies of the documents.
* Keep your ideas simple and concise. Nobody likes to
read long winded business plans.
* Allow several hours for the preparation of your
business plan.
* Although the file BIZPLNXX generates a business plan
which is some 30 pages long, your's may be shorter
or longer. Some sections may not apply to your
business.
* Fill out the financial worksheets before spending time on
the text.
Business Plan Master Page 2 User's Guide
Business Plan Master - User's Guide
-----------------------------------
Files
______
*.WP = WordPerfect 5.1 file
*.DOC = ASCII text file
*.WK1 = Lotus 1-2-3 v2.2 file
XX = Version number
BIZPLNXX.WP or BIZPLNXX.DOC
Business Plan Master
A file containing a sample business plan with sample text which
you can use or modify. Formatted in the most popular style
BPMPROF.WK1
BPM Proforma Financials
This file contains a large Lotus worksheet which will give you a
cash flow forecast, balance sheet, income statement, ratio
analysis, and financial comparisons.
BPMBREAK.WK1
BPM Breakeven Analysis
A worksheet to help you determine your breakeven point.
BPMHIST.WK1
BPM Historical Statements
A worksheet to allow comparisons between your past financial
statements and your proforma statements.
USERS.GDE
This User's Guide.
REGISTER.ME
Registration details and order form.
INVOICE.DOC
Many companies need an invoice for accounting and tax purposes.
Business Plan Master Page 3 User's Guide
Business Plan Master - User's Guide
-----------------------------------
USING BUSINESS PLAN MASTER (tm)
-------------------------------
As mentioned previously, my recommendation is to start with
the financial worksheets and then move into the text. This is
very sadistic, I know, but if your business is not going to work
out at a level acceptable to you or your investors, you need to
know that before spending time on the text.
So let me explain how to fill out the worksheets with your
own projections and to understand the output they give you.
BPM Historical Financial Worksheet
__________________________________
[Optional]
If you are already in business, then you probably have
financial statements. You will need to include those in the
"Attachment" area. You will find it useful to plug in that
information into this file. This will allow you to compare your
past financial history with the statements which will be
generated by the other worksheets. This way you will be
making a valid comparison.
Description:
This worksheet was originally created in Lotus 2.2. It is
one large worksheet. I had considered making a series of
smaller "linked" worksheets, but decided that many users may not
understand the usage of linked worksheets and therefore might
lose data. Also, because it is one large worksheet, by using
separate windows and separating the screen, you can instantly
see the effect one area has on another. Also, I have placed
protection on everything except the numbers. This is not to
frustrate you, but to save you from making any changes which you
have not thought totally through. To undo the protection use
"/WGPD".
"Worksheet Global Protection Disable"
Please keep in mind that any numbers already in the
worksheet are examples and are probably nonsense.
NOTE:
Each section is recorded as a range name. This will make it
easier for you to maneuver through the worksheet. To move to an
area, hit <F5> (Go To) followed by the Range Name.
Business Plan Master Page 4 User's Guide
Business Plan Master - User's Guide
-----------------------------------
The first items to be entered are the variables into the
"Income Statement".
<F5> (Go To) - "Statement Variables".
Enter
1. The percentage rates of returns you have experienced
2. Your state tax rate
3. Your federal tax rate.
Now you may proceed to enter in the remainder of the "Income
Statement" information. This format should match most income
statements. You may have to exercise some discretion as to
where you should put specific items.
Move to the "Asset Worksheet"
<F5> (Go To) "Asset Worksheet".
Fill in:
1. The numbers in column K
2. The amount of goodwill in L29.
If you have other fixed assets, include them in one of the
topics as best you can. DO NOT ALTER L25!
If you have other intangible assets, include them in
"Goodwill" and put them in L29. DO NOT CHANGE THE LOCATION OF
THIS TOTAL!
Move to the "Balance Sheet"
<F5>(Go To) "Balance Sheet".
Next fill in the balance sheet. You will notice that your
Fixed and Intangible Assets will be transferred over to this
sheet. You will need to manually enter your depreciation rates
in R17-T17.
Once you have completed these, the other sheets will be
automatically computed.
Business Plan Master Page 5 User's Guide
To print out any section of this worksheet, just use the
"/PPR #Range Name#" command and you can have it printed out. I
strongly suggest printing out each area separately to make your
work easier. If you have the add-in "Allways" or a more recent
version of Lotus than 2.2, you can shrink the font size to fit
on a single page. Also, a utility such as "Sideways" can allow
you to print the forms out sideways and compressed.
Locations:
Income Statement: A13:F73
Statement Variables: A75:C80
Asset Worksheet: H1:M19
Balance Sheet: P1:U501
Ratio Analysis: O52:U76
D&B X1:AG61
RMA AI1:AP52
----------------------
BPM Proforma Worksheet
______________________
You may have a great business idea, but if it doesn't make
financial sense, you mustn't go any further. The purpose of
this large worksheet is to test the financial validity of your
idea. This section is undoubtedly the most complex, but it is
the most vital. Without some hope of financial success, there
is no reason to start or continue a business. Even if you find
that your idea is not viable or does not meet your own personal
expectations, this exercise will be well worth the time and
effort to determine that fact.
Description:
This worksheet was originally created in Lotus 2.2. It is one
large worksheet. I had considered making a series of smaller
"linked" worksheets, but decided that many users may not
understand the usage of linked worksheets and therefore might
lose data. Also, because it is one large worksheet, by using
separate windows and separating the screen, you can instantly see
the effect one area has on another. Also, I have placed
protection on everything except the numbers. This is not to
frustrate you, but to save you from making any changes which you
have not thought totally through. To undo the protection use:
"/WGPD".
"Worksheet Global Protection Disable"
Let me walk you step-by-step through this worksheet. Please
keep in mind that any numbers already in the worksheet are
purely examples.
Business Plan Master Page 6 User's Guide
Business Plan Master - User's Guide
-----------------------------------
Cash Flow Projections A6:AR64
This is a very large worksheet to help you track your cash
flow. You may want to print out just this section to get a
handle on what is involved. The best way to do that is to print
it either in a smaller font using something like the add-in
"Allways" or compressed and sideways.
-----------------------------------------------------------------
IMPORTANT NOTE:
REMEMBER THAT ENTRIES IN ONE AREA OF THE WORKSHEET WILL EFFECT
OTHER AREAS OF THE WORKSHEET. DO NOT MAKE CHANGES IN THE FORMAT
OF THE WORKSHEET UNTIL YOU ARE VERY CONFIDENT OF THOSE CHANGES.
WORK ON A BACKUP COPY.
-----------------------------------------------------------------
The best way to learn the relationships in the worksheet is
to look at cells where it is obvious a calculation is being
made. In general, the cash flow chart feeds into the Income
Statement, which feeds into the Balance Sheet which feeds into
the ratios and analyses.
The place to start is to the "Variables" area.
<F5> (Go To) "Variables".
Here is what you need to fill in:
Cash Reserve: You don't want to end any month with $0 or less in
the bank. What will your cash reserve be? The
worksheet will automatically determine how much of
a bank loan you will need based on this figure.
Mark Up: This is important for figuring inventory. If
you have a service business, enter 100%. This
will give you no inventory. (Default)
Mark-Up is figured as a percentage of SALES, i.e.
you sell something for $100 and your cost is $50,
your Mark Up 50%. In mathematical terms (Sales
Price/Gross Profit = Mark Up). Many think of
Mark Up as the percentage difference between our
cost and our sales price, i.e. I paid $50, sold
it for $100, my mark up is 100%. This is mark up
on COST, not on sales. This distinction is
important in your dealings with financial
consultants, bankers or venture capitalists.
Business Plan Master Page 7 User's Guide
Business Plan Master - User's Guide
-----------------------------------
Freight %: What percentage of inventory cost will your
inbound freight be? If you have a service
business, there will be none as this amount is
figured as a percentage of inventory and you will
have no inventory (due to the above entry).
If you have a manufacturing company, inbound
freight on raw materials will not be included, so
the percentage is 0.
Commission: How much commission (%) will you pay on sales?
You might have this in a service business as
finder's fees.
Beg Cash: How much are you starting out with?
Having completed this section, let's go to the "Sales"
section (A20). If you have more than two products, you may
insert them BEFORE the 2nd Product. This will keep the Total
Sales calculation ok. I suggest that you wait before entering
actual sales forecasts numbers.
If you do an insertion, (/WIR - Worksheet Insert Row),
keep in mind that several of the worksheets next to this Cash
Flow Worksheet will have some holes in it. This will not effect
the calculations, just the appearance. You can correct the
appearance by 1. saving the worksheet and 2. Use the "Move"
command on the section to be moved (/M "Move" enter Range and
destination).
"Cash Receipts" (A25)
I have used percentages which are typical if you grant terms
of 2/10,n/30 (2% cash discount within ten days, otherwise net 30
days). If your terms are different you may adjust accordingly
by changing the percentages next to the month.
If you are on a cash basis, put all cash receipts in the
"Month of Shipment" row. Do NOT delete any rows. If you do,
the rest of the worksheets will not work!
Remember that the cells are protected so you will need to
unprotect them to change data.
Now you can fill in the remainder of your costs. Try to
make things fit in the closest category. If you have any
questions as to where anything belongs (and I haven't explained
it well enough!) contact me and I will help. If your financials
are complex enough, we may need to do a customized spreadsheet.
(This is not a blatant advertisement; I like tinkering with
spreadsheets and financial info.)
Business Plan Master Page 8 User's Guide
Business Plan Master - User's Guide
-----------------------------------
Don't delete any category or the worksheets will fail!
If you feel secure that these costs are going to be stable
you can copy them across the width of the worksheet.
Rent Rent or mortgage payments.
Utilities Electric, gas, garbage, water, etc.
Telephone Office, cellular, long distance charges (not equipment,
that is an asset).
Salaries Management personnel (not hourly). Total of all.
Payroll Hourly employees
Withholding In the US, we have to deduct a certain percentage for
federal and state taxes, as well as Social Security.
Other countries may have different rules. You will
need to check with accountant or a government
publication to determine rates as they vary
according to many factors.
Inventory,Materials
This will be automatically calculated on your
sales using the Mark Up percentage you entered
into the "Variables".
Freight-In Will also be automatically calculated based on
"Freight Percent" in the "Variables".
Office Supplies
Paper, pencils, envelopes, coffee, etc.
Postage Ordinary mail or overnight, but not in
association with shipping finished merchandise.
Advertising Newspaper, radio, flyers, brochures, etc.
Professionals Accountants, lawyers, etc.
Commissions Figured automatically from the "Variables".
Insurance Liability, fire, auto, truck, etc.
Travel/Entertainment
I put this here as it is a cost, but the US
Government keeps changing the rules, so be
careful about what you try to deduct out of this
category. Be smart and only put legitimate
expenses in.
Business Plan Master Page 9 User's Guide
Business Plan Master - User's Guide
-----------------------------------
Research Every company devotes a different amount for
research and development. Please enter an
amount which is appropriate for your company, if
any.
Miscellaneous A good spot for odds and ends.
State Taxes You may have to pay quarterly taxes. It will
depend on your income.
Federal Taxes Same reasoning as "State Taxes".
Now, you can enter in sales goals. I left this purposely for
last. Controlling costs is far more important than getting tons
of sales. If your costs are not in line, you will be tempted to
"fudge" on the sales. Having determined your costs up front will
help you to be more honest.
I have devised this worksheet to be all you need. If you
have more products or other costs which need to be included,
take your time changing the worksheet. Make sure you are very
familiar with its operation and always fiddle around on copies,
not on originals. It is a lot of work to rebuild this type of
material.
I know. While putting the finishing touches on this
worksheet my hard drive fizzled. I recovered all of "Business Plan
Master (tm)" except this one worksheet. Lost a lot of time.
Asset Worksheet AS1:BC19
This is a very simple worksheet which asks you to enter your
proposed assets. They are totaled automatically and are used in
the balance sheets.
Income Statement AS77:BC139
This is automatically generated from the cash flow
worksheet. This is often called a "Profit & Loss Statement".
Hopefully, you will see a profit! I have included information
on year-to-year changes for your own information.
Business Plan Master Page 10 User's Guide
Business Plan Master - User's Guide
-----------------------------------
It is very important that you enter the correct numbers in the
"Statement Variables" area.
<F5> Go To - Statement Variables".
Enter
1. The percentage rates of returns you project
2. Your state tax rate
3. Your federal tax rate.
******
Note:
******
In the following sections, you might see an entry "NA". This
means that the denominator in the equation equaled zero. Since we
can't divide by zero, an error is created. This should not be taken
as a negative. In fact it cane be very positive. Many of the
ratios are figured on debt. If you have no debt, you have a
zero denominator. Frankly, I think that is wonderful. I just
wanted you to know the math behind this. Look at each ratio to
determine if there might be cause for concern or celebration.
Balance Sheet AS140:BC189
Automatically generated. This shows the relationship of
your assets, liabilities, and your net worth.
Ratio Analysis AS190:BC215
Now we analyze the Income Statement and the Balance Sheet.
Now you can start to see if your idea is healthy or not.
Current Ratio Current Assets/Current Liabilities
Acid Ratio Cash + AR/Current Liabilities
Debt Ratio Total Assets/Total Liabilities
TIE Times Earned Interest
EBIT (Earnings Before Interest & Taxes)/
Interest Expense (no usage here)
Inventory Turn Ending Inventory X 360/Cost of
Goods Sold
Avg. Collection AR X 360/Sales
Total Asset Turn Sales/Total Assets
Gross Margin Gross Profit/Sales
Net Margin Net Income/Sales
Return on Assets Net Income/Total Assets
Return on Equity Net Income/Net Worth
Officers Comp Officer's Compensation/Sales
Business Plan Master Page 11 User's Guide
Business Plan Master - User's Guide
-----------------------------------
Dun & Bradstreet Industry Norms BD1:BO59
None of the ratios mean anything until you can compare them
to others in your industry. The "Industry Norms" are complied
on the basis of SIC Code numbers. Not all numbers are
available, so if your isn't use the closest you can find. You
do not want to be in the lower range of numbers nor do you want
to be beyond the highs. No one will believe you if you are
higher. If you are low, it will be very hard to get anyone to
fund you as most projections are believed to be optimistic.
(Available from most public libraries).
These ratios are similar to the above ratios. Detailed
(excruciating) explanations are in the D&B book.
RMA BP1:BX52
Another set of industry statistics comes from the Robert
Morris Associates. The same advice holds for these as for the
D&B reports. (Available from most public libraries).
--------------------
Break Even Worksheet
____________________
This is a simple worksheet to help you determine your
breakeven point. All you have to do is enter the numbers in the
noted areas.
The two items you may not know are price and quantity.
Price is defined as the price at which you will be selling your
product. The quantity is the number sold. Everything else you
should already know.
So, if you want to know your breakeven price and you know
everything else enter it in. Then hit "<Alt> p". This solves
for price.
If you want to know your breakeven quantity, enter
everything else and then hit "<Alt>-q". This solves for
quantity.
Please remember that Profit always equals $0.
Once again, you can modify the worksheet if it doesn't
totally meet your needs.
Business Plan Master Page 12 User's Guide
Business Plan Master - User's Guide
-----------------------------------
--------------------
Business Plan Master
____________________
This file contains boilerplate text and is already formatted
for a well-written professional business plan. We will now
explain how to complete the following sections:
Title Page
First replace [My Company] with your company's name. Fill
in the correct address and phone number as well. Finally
replace [Your Name] with your name and replace [DATE] with
today's date.
Table of Contents
Many word processing programs can generate a table of
contents automatically and can paginate automatically. If yours
doesn't you may want to consider paginating manually.
Executive Summary
This is the page where pagination and your footer starts.
Open up the footer and replace [My Company] with your company
name. Be sure to start pagination at Page 1.
The remainder of this section should be written after the
other sections are complete. It is a complete summary of your
company and its objectives.
Go through and replace the following:
1. [My Company] to your company name. It is ok to do a
global search-and-replace if your program supports
that. If you are allowed to confirm each replacement,
it is a good idea to do so.
2. [I/we] to whichever is appropriate. May also be
globally replaced.
3. Most other changes are unique to this page and are
obvious. Whenever you come across <Product> and
<Service>, this means that the items following pertain
either to a product oriented business or a service
oriented business. Of course, if you see something
you want to use, by all means do so.
Business Plan Master Page 13 User's Guide
Business Plan Master - User's Guide
-----------------------------------
4. Always look out for "XXX" this means to replace this
with a number.
5. Also be on the lookout for my attempts at comedy (i.e.
Ferrari Testarossa). A business plan doesn't have to
be dry and boring. But it should be original so use
your own jokes!
Be sure to include:
* Type of business you have or are starting.
* If you are currently in business, how are you doing?
* What form you business is in - proprietorship,
partnership, corporations (Subchapter S, etc.)
* How are you going to be profitable and how profitable?
* What distinguishes your business from the competition?
* What are the financial rewards?
Financial Goals Table:
The data for this table is available from the BPM Proforma
Financials (Stock Analysis) spreadsheet. The exact location is
BZ1 through CE20. You must enter this manually from the BPM
Proforma Financials.
The Management
[Include either your resume (if proprietor) or short biographies
(if partnership or corporation). Be sure to include all
experience and information pertinent to this type of business.
Then you will need to include a section on duties and
responsibilities. This might incorporate a simple organization
chart. Include salaries.
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[My Company] History
If you have been in business, give a complete but brief
history of your accomplishments to date. Short, succinct
paragraphs are all that is truly necessary. Include all
highlights whether positive or negative. The negative portions
should include the lessons you learned and the steps taken to
prevent a recurrence. This is very valuable. Everyone has made
mistakes. Did you learn from them? Make sure your history ties
into where you are going from now. Don't leave time gaps.
[Product, Service] Description
The readers of your business plan will want to know exactly
what your product or service offering is. The length of this
section is in direct proportion to the complexity of your
service or product. Look one again for comments and suggested
text in brackets which will need to be replaced. The complexity
of your description will also be dictated by the audience your
business plan is addressing. Investors may not understand all
your technical lingo, whereas a partner with a technical
background will want to see it all.
Objectives
Long Term
State very simply what your firm's long term objectives are.
Long term should be considered 5-10 years. Pithy statements
such as "market leader", "most profitable", etc. are obvious.
What you need are clear direct statements of intent.
Short Term
Short-term goals are those to be met within 5 years. Again
steer clear of pithy overused marketing mumbo jumbo and just
state your intent backed up with a plan. Short-term goals
should mesh invisibly into and support long term goals.
Competitors
List all your competitors along with their respective
strengths and weaknesses. Discuss how you will compete against
these strengths and weaknesses, if you intend to do so directly.
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Our Competitive Advantages
Unless you can distinguish yourself from the competition,
you may have a rough go of it. It is very important that you
have an honest appraisal of your company strengths and
weaknesses as well as the strengths and weaknesses of your
competitors. Some may prefer to switch this section with the
section on "Competitors". However, if you have multiple
products with different competitors, use a separate section for
each product and examine the competition there.
Make sure that you speak to all of your competitors'
strengths and weaknesses whether you intend to meet them or not,
as well as how these strengths and weakness will impact your
business.
This section has also been divided between <Product> and
<Service>.
Summary
Because you have been so thorough in your explanation of
your particular advantages, you need to summarize your
competitive advantages so that your reader will get the gist of
what your are saying.
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Pricing
You will need to discuss at what price you will be offering
your products or services. Respond to the following questions:
* How did you calculate this price?
* How does this price compare to your competition?
Remember that price competition for a startup company
is usually deadly for the startup company. It is
better to offer more services or tangible benefits with
a higher price.
* What pricing policy are you following (cost plus,
market, seat-of-pants, etc.)?
Specific Markets
If you are entering several markets at once (not a good idea
unless they are very compatible or the single line of products
or services you are offering cross market lines) it is mandatory
that you discuss your strategy for each market.
Market #1
General History
Give a specialized history of this market and how it
pertains to your product. Keep in mind that you know your market
better than anyone. Therefore outsiders may not understand it as
you do. Try to imagine writing this for someone who knows
nothing about your industry or product. This will help you keep
your ideas simple and clear.
Entry Strategy
Discuss how you will enter (or have entered) this particular
market in detail.
Growth Strategy
Having now entered this market, how will you maintain and
increase your sales and service?
Market Size & Share
State directly what you expect to achieve in this market.
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Other Markets
Use the same format for additional markets.
Targeting New Markets
In order to keep growing, you will need to either expand
into your present market or address other markets. How are you
going to do this?
Location
For many businesses, the location where you run your
business is extremely important. This is true for
manufacturing, distribution or wholesale businesses as well as
many service industries and product-based industries where being
close to clients and customers is very important.
Manufacturing Plan
This section does not apply to service businesses. Because
of the difference in manufacturing processes, I have just
included some sample text. You will need to address the
following questions:
* What are your sources of supply? Do you have secondary
sources?
* Which production method will you be using? Is it state
of the art?
* How do you [will you] protect your cost advantage?
* Will you be a job shop or mass production?
* Are there any toxic or hazardous materials involved
with your production [include by-products] and how will
you handle them?
* What will be your quality control procedures?
* What do you estimate to be your capital asset
requirements?
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Research & Development
Probably also only for product based businesses, unless
continuing education will play an important role in your
service- based business. The following points need to be
covered:
* List and explain your present research achievements.
* Who will control research efforts?
* Describe projects underway are planned for near future.
* What has been your success in terms of rate of
investment?
* Are any government funding sources available to you?
* Are you involved or seeking to be involved in any R&D
partnerships?
Historical Financial Data
Simply include these statements in the "Attachment" area.
Also discuss all assumptions, successes, problems, discrepancies
and other items not obvious to the Casual observer. Also
include the worksheet "BPM Historical Financials". These
include valuable guides to industry standards for use in
comparing your business with others in your field. For
information on filling in this spreadsheet, see the section "BPM
Historical Financial Worksheet" above.
Also explain any occurrences of "NA" and their significance.
Proforma Financial Data
Give a complete explanation of all your financial
statements. Clear up anything that might not be obvious to the
casual observer. Check documentation for complete explanation
of spreadsheets.
Also explain any occurences of "NA" and their significance.
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Proforma Cash Flow Analysis
Assumptions
Just because the worksheets make sense to you, they
probably won't make sense to anyone else. Also, you may
forget what your own assumptions were. BE SURE TO KEEP
THIS UP-TO-DATE!
Sales Forecast
Putting your growth rates here will help you remember
what you forecast as well as presenting these numbers in a
simplified fashion.
Cash Flow Variables
You need to be forthcoming about any variables which may
effect your cash flow. No business ever goes exactly according
to plan. The idea is to show that you can keep on top of it when
things go worse than expected and also when things go better than
expected. Both can be dangerous!
Income Statement
Assumptions
Just because the worksheets make sense to you, they probably
won't make sense to anyone else. Also, you may forget what
your own assumptions were. BE SURE TO KEEP THIS UP-TO-DATE!
Risks & Variables
Share your assumptions and what might happen if your
assumptions are wrong - positive or negative.
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Balance Sheet
Cost Control
How do you plan to track your financial progress?
Ratio Analysis
Ratio Analysis allows you to track your performance in
accord with some financial conventions. These ratios will
be closely looked at by bankers and others interested in
investing in your business. More importantly, you should
know where you stand.
Financial Standards
The two most popular sources of industry financial rations
are Dun & Bradstreet's Industry Norms and the Robert Morris
Associates tables. Both of these references should be available
in your public library in the business reference section. These
two items are copyrighted by their respective companies.
Breakeven Point
Taken from BPMBREAK.WK.1 spreadsheet.
Use of Money
This section is for those who are seeking to raise capital
or debt financing. You need to let your prospective investors
know where the money is going. Even close friends and family
need to be kept informed about where the money is going.
Consider the following questions:
* Where is the money going?
* Who is the supplier?
* What is the price?
* Model name and number.
* Are there any extra charges such as sales tax,
installation charges and freight?
* How will this make this business more profitable?
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