This business plan template is designed to assist you in preparing for starting or expanding your business.

Transcription

1 This business plan template is designed to assist you in preparing for starting or expanding your business. You may want to hand-write your business plan but you will create a more professional look if it is prepared on computer in a word program. You may need to add pages to include; your research findings, detailed descriptions, lists or charts. You will also need to provide witnessed signatures on some documents when seeking financing for the business. The completed plan will paint a picture for the reader and describes: what it is you want to do how and why you are going to do it where you want to go with the business how and when you plan to get there Enterprise Brant provides free business consulting services by appointment. We can help. If you would like to set up a time to meet with a business consultant or want a copy of this business plan template and spreadsheet on disk CALL or Enterprise Brant at. We look forward to meeting you! Enterprise Brant o/b Brant Community Futures Development Corporation 330 West Street. Brantford, Ontario N3R 7V5 (519) office hours 8:30 a.m. 4:30 p.m. weekdays open Tuesdays until 6:30 p.m. September to May

2 Cover Page Business Name/ Proposed Name: Business Address: City /Province/Postal: Phone/ Fax/ Owner Name: Owner Address Street: City/Province/Postal: Phone: Fax: Prepared By: Date: 1

3 Table of Contents Executive summary Page 1) Business Profile.... History Ownership Location Objectives 2) Products and Services.. Business Description Key features Production Future Competitive advantage 3) Industry Overview Market research Size of the industry Key product segments Key market segments Purchase process Overall industry Key trends Industry Outlook 4) Marketing Strategy. Target markets customers Competitors Competitive analysis Pricing Strategy Promotional Strategy Distribution Strategy 5) Management and Operations.... Organizational structure Management team Staff Regulatory Issues Market Risks 6) Implementation... New business start up costs 7) Financial Plans Opening Balance Sheet Projected Cash flow Projected Profit and Loss 8) Personal. Personal Financial Statements 9) Appendices.. Existing Company attach Year End and Current Financial Statements Income Tax filing prior year Market and Statistical Research Product Literature, photos, floor plans etc. Credit Consent Form and Waiver 2

4 Resume, References 1. BUSINESS PROFILE i) What is the status of the business? Existing Starting a new business Purchasing a business or franchise? ii) Briefly describe your business. If it is a new business, highlight some of the reasons why you are starting the business. If it is an existing business when and who started the business and state any major changes that have occurred in the business. iii) Ownership: Sole Proprietor Partnership Incorporation: # shareholders What is the legal name of your business and who are the principal owners and % of ownership, if applicable. iv) Date the business was registered /incorporated v) Master business registration or incorporation # vi) Describe your location and the facilities. Include the address, size of your facility, lease or purchase cost. What is the length of the lease and options? How does the location add to the success of the business? vii) Fiscal Year End for the Company 3

5 1. BUSINESS PROFILE viii) Professional Associates: Bank Branch Accountant Firm Lawyer ix) Number of employees now? (including owners) FT PT Casual How many employees will you be hiring within the next year? FT PT Casual x) Subcontractors or Strategic Alliances Identify any trades or subcontractors you hire or strategic alliances you have within the industry. xi) Are you a Canadian Citizen? Yes No Language? English French Other xii) What are your short-term objectives for the business? Setting objectives help you to measure how will your business is doing in the short term. You may want to capture a market position, or increase your sales over the next year, or hire additional staff, you may want to carry a certain brand name exclusively, or secure a bank loan. Objectives should be measurable and attainable. xiii) What are your long-term objectives for the business? In 3 to 5 years what do you foresee happening with your business? 4

6 2. PRODUCTS AND SERVICES i) Description of your products and services Briefly describe the products and services your business will be selling. Are you selling to consumers and the general public or are your customers other businesses or corporations? ii) Key features of the products and services. Explain why customers buy your product or service instead of your competitors? What makes your product or service unique and how does it differ from the competition? iii) Production and development of products and services. How will your products and/or services be produced? Describe the process or resources used in the in both human resources and materials or key suppliers. What factors are involved/affect the process from start to finish? iv) Future products and services. Do you have plans to update your products or services or introduce new ones in the next 1-3 years? v) Competitive advantage What is there about your products or services or production process that gives you an advantage over your competition. For example your specialized skills, technology access to raw materials, suppliers? 5

7 3. INDUSTRY OVERVIEW i) Market Research Discuss what research you have done to write the business plan. For example have you utilized secondary information prepared by others: trends identified in magazines or newspaper articles, use of directories, franchise guides, internet, research and statistics (Statistics Canada). Have you conducted primary research such as: surveying current and potential customers, talking to others in the industry/who are they? What are your findings and how will this affect your business? Provide the details and results. ii) Size of the industry. How big is the industry you will operate in? Highlight statistics you have gathered and indicate whether you are entering a growing market. Discuss the size of the market in broad terms and in your area. Size may include information, such as overall volume of sales, number of other producers, areas and groups. iii) Key product segments Industries can be divided into segments for example in the restaurant industry fast food, family dining and fine dining. Explain the segments of your market and which segment of the market does your business fit? iv) Key market segment. Industries can also be divided into market segments. Who do the businesses within your industry sell products and services to? Divide the market into customer groups; highlight the size and characteristics of those groups. v) Purchase process and buying criteria Do you know how and why customers purchase products and services like yours? Is it price, quality, service, support, lifestyle. What factors influence your customer to buy? 6

8 3. INDUSTRY OVERVIEW vi) Industry participants. Describe in general terms the types of companies you are competing with in terms of size, location, how broad are their products and service, how large, typically how many do they employ. vii) Key trends in the industry What are the key trends (changes) in the industry? What external factors may be affecting your industry and how will they an impact your business. E.g.: regulations, economic conditions, and technology. viii) Industry Outlook Discuss the products or services that indicate the greatest opportunity for growth in your industry. What products or services are expected see a decline in sales. Why? ix) Research Conclusions: After you have conducted the research are you able to answer the following questions: Who is my customer target market? What does my customer want to buy? Where does my customer buy? When does my customer buy? What is the best media or method to reach them? What are some factors that influence their buying decision? 7

9 4. MARKETING STRATEGY i) Target Markets - Customers Target markets are groups of potential customers, within the overall market, to whom a business wants to sell their products. Who are your customers? Describe the characteristics of your typical customers. (i.e.: Consumers age, income, families, location etc. Business small, large, location, # employees,) ii) Description of key competitors Describe your competition in the industry in terms of location, size, products & services and workforce. iii) Competitive Analysis (direct competition) use another page Analyse your direct competition & look for strengths, weaknesses, threats and opportunities in your market. Company Location # Employees Annual/Sales Strengths Weakness Opportunity Threat my company iv) Pricing Strategy Discuss how you will price your products and services. How does it compare to your competitors? What do they charge for similar products and services? 8

10 4. MARKETING STRATEGY v) Promotion Strategy Discuss how you will make customers aware of your products and tell them where and how to buy them. How will customers recognize your company? What methods will you use to attract new customers and keep the ones you have? Identify media methods and pricing, advertising, direct mail, sales calls and trade shows that will reach your target market customers. Develop a budget and strategy. Month Advertising and promotion methods/quantity / frequency Cost Total monthly budget E.g.: 1 business card size ad / once a week / 4 weeks $50 / wk $200 Start-up mo vi) Distribution How will you distribute your products and services in your market? 9

11 5. MANAGEMENT AND OPERATIONS i) Organizational Structure. Describe the management and staffing structure of your business. How many employees do you have? What are the key positions within your business? ii) Management Team. Who are the key people on your management team? Describe the position, key functions and experience. What are the strengths and weaknesses of management? Include resumes where possible. iii) Staffing. Discuss the skills and experience required for positions in the company, the hourly rate and the training you provide. Identify key employees where possible. Do you have any unpaid employees? iv) Labour Market. Discuss other labour or issues that affect your operations. v) Regulatory Issues. Identify any regulatory issues in your industry: licences, permits, trademarks, copyrights, insurance, etc. vi) Risks. Identify any risks that could affect the success of your business and how you will overcome them. 10

12 6. IMPLEMENTATION i) Implementation Dates and Activities. You have identified a number of things you are going to be doing. Summarize activities you need to initiate before you officially start the business. Whom, how, and when they will be done, with dates. ii) Start up Business. Describe and list what you need to purchase, supplier terms and the prices you have been quoted. Total $ iii) Start up Business. Describe and list what you already own/purchased for use in the business and its fair market value. 11

13 Total $ 7. FINANCIAL PLAN i) Business proposal for financing. Have you approached other lending institutions with this business plan? yes no If yes, Whom did you approach? What was the outcome? ii) Amount of loan(s) request. Are you applying to ENTERPRISE BRANT for a loan? yes no If yes, how much are you applying for? $ iii) Uses of the loan money? Itemize how will you use a loan in terms of: purchasing assets, equipment, inventory, working capital. ITEMS COST Total $ iv) Will the loan have an impact of creating or maintaining jobs? Explain. v) Personal investment. What is your personal investment into the business including cash and equity such as: equipment, tools and supplies you have already purchased for the business? Cash Other vi) Taxes. Provide a list of taxes you will be paying. GST, PST, Payroll Deductions, others. How are they calculated? vii) Record Keeping. How will you keep records in your business and who will be responsible for invoices accounts payable/receivable? Will the records be kept manually or computerized? Explain? 12

14 Company Name: Year PROJECTED CASH FLOW STATEMENT MONTH Start-up TOTAL Total Projected Sales CASH IN: 1) Cash sales 1 30 days 2) Receivables days 3) Receivables days 4) CASH IN FROM SALES (1+2+3) 5) Owner's Equity (cash) 6) Loan I 7) Loan 2 8) Opening Cash Bank Balance 9) TOTAL CASH IN ( ) CASH OUT: DIRECT EXPENSES (a) Materials/Inventory (b) Supplies Subcontracts Labour # employees Employee benefits/tax 10) TOTAL DIRECT EXPENSES FIXED (INDIRECT) EXPENSES Advertising Bank Fees & Charges Equipment Leases Insurance Maintenance and Repairs Meals & Entertainment Office Supplies Legal/ Accounting/ Professional fees Property Tax Rent Repairs and Maintenance Salaries, wages & benefits Travel/ Vehicle expenses Telephone / Internet /Cell Utilities Hydro & Gas Loan Payment 1 Loan Payment 2 Equipment purchases Other: Owner Draws 11) TOTAL FIXED EXPENSES 12) TOTAL CASH OUT (10+11) 13) CASH Surplus/(Deficit) (9-12)

15 Company Name: Year PROJECTED INCOME STATEMENT First Second Third Fourth Total Per Cent Quarter Quarter Quarter Quarter Year 1 of Sales $ $ $ $ $ % 1) SALES COST OF GOODS SOLD Materials/Inventory & Supplies Sub-contracts Labour Wages & Benefits 2) TOTAL COST OF GOODS GROSS PROFIT (1-2) EXPENSES Advertising Bank Fees & Charges Equipment Leases Insurance Meals & Entertainment Office Supplies Legal/ Accounting/ Professional fee Property Tax Rent Reparis & Maintenance Salaries, wages & benefits Travel/ Vehicle expenses Telephone / Internet /Cell Utilities Hydro & Gas 3) Total Fixed Expenses Total Operating Expenses 2+3 4) Operating Profit (1-3) 5) Owner Draw (proprietor) Balance (4-5)

16 8. PERSONAL FINANCIAL STATEMENT page 1 of 2 NOTE: This information must be submitted for each of the principals of the business in partnerships or incorporations. 1. First Name: Middle: Last Name: Address: City: Postal: MM/YY if less than 2 years at current address At this address since? Own: Rent: Previous Address: Home Tel/Cell: Marital Status: Single Married Common Law Divorced Separated Widow MM/DD/YY Number of Dependants: Date of Birth: Social Insurance # Business Name: Business status: Incorporated Partnership Proprietor Business Address: Business title: Business Phone: Fax: MM/DD/YY 2. Spouse s full name: Date of Birth: Social Insurance # Occupation: Employer & Address: Spouse s length of employment with current employer: OTHER INFORMATION: Are you party to any claims or lawsuits? Yes No Do you owe any taxes prior or to the current year? Yes No Have you signed as a guarantor for credit? Yes No Has you or your spouse ever declared bankruptcy? Yes No If you answered YES to any of the above questions provide or attach a detailed explanation: Important to read thoroughly before signing DISCLOSURE AND RELEASE STATEMENT To: ENTERPRISE BRANT o/b Brant Community Futures Development Corporation (BCFDC): I, the undersigned, hereby certify that the information and that any information contained herein is true and complete and does not fail to disclose any material facts concerning me or the business that a reasonable lender would require. The property values shown are the fair market values of the properties and the amount of the debts is the total potential indebtedness. I am not being sued, have not made an assignment or been petitioned into bankruptcy and there are no writs registered against my name or that of the business. I confirm that if any statement I have made herein proves to be incorrect in any particular, I shall inform ENTERPRISE BRANT immediately, and I realize that any present or future indebtedness of me or the business to ENTERPRISE BRANT may, if any information provided by me to ENTERPRISE BRANT proves to be inaccurate or incomplete, become due and payable. I authorize ENTERPRISE BRANT to make any credit and reference investigations concerning the business and myself that ENTERPRISE BRANT may deem appropriate. I acknowledge that if the loan application is approved, Industry Canada or its successor(s) may have access to the file of ENTERPRISE BRANT concerning me and the business and that ENTERPRISE BRANT shall have the right of access to the records of the business immediately upon my signing this acknowledgement and thereafter for so long as any amounts are owing by myself or the business to ENTERPRISE BRANT. I certify that I am legally eligible to work in Canada. Statement, Information and consent must be completed, signed, witnessed before the application can be processed Applicant name: (print) Applicant signature: Date: Witness Name print Witness signature 1) 2) For Office use only: 13

17 Credit Check: date Loan request: Rec d by: (initials) Date Received: 8. PERSONAL FINANCIAL STATEMENT page 2 of 2 NOTE: This information must be submitted for each of the principals of the business of partnerships or incorporations. STATEMENT OF PERSONAL ASSETS AND LIABILITIES: Name: ASSETS (own) INSTITUTION AMOUNT CASH Bank, Branch $ RRSP s, (self) RRSP s (spouse) Describe Stocks, Bonds, Mutual Funds Address, - Year purchased & amount purchased for Real Estate Property (1) Address, - Year purchased & Amount purchased for Real Estate Property (2) Year,make, model Vehicle (1) Year, Make, model Vehicle (2) Ins. Company, Face Amount Life Insurance (self) Ins. Company, Face Amount Life Insurance (spouse) Description Other assets TOTAL ASSETS.. FMV FMV FMV FMV 1 $ LIABILITIES (owe) INSTITUTION AMOUNT Bank, address Personal Loans or LOC Mortgage company, branch Mortgages (1) Mortgage company, branch Mortgages (2) Motor co., Bank, # years payable Vehicle Loan or Lease (1) Motor co., Bank, # years payable Vehicle Loan or Lease (2) Describe, property, personal, business, prior year or this year Taxes Payable Bank Credit Cards Visa & M/C List company names Credit Cards (other) Description Other TOTAL LIABILITIES.. 2 $ Calculate - Your Net Worth = 1-2 (Total Assets minus Total Liabilities) = $ STATEMENT OF INCOME AND EXPENDITURES ( ANNUALLY) INCOME ANNUALLY EXPENDITURES Monthly ANNUALLY Salaries, Wages (self) Gross (before taxes) Salaries, Wages (spouse) Gross Rental Income Mortgage/ Rent & Property tax Income Taxes,CPP,EI, RSP s Total Loan Payments Other Income: EI, CPP, Support Total Credit Card Payments 14

18 Other TOTAL INCOME. utilities, food,recreation,cars,daycare,etc Estimated Living Expenses: 3 $ TOTAL EXPENDIITURES $ 4 $ Calculate - Your Disposable Annual Income 3-4 = ( Total Annual Income minus Total Annual Expenditures ) = $ 9. APPENDICES Please attach other information where applicable including: i) Business year end financial statements. If you are an existing business please provide three years of Financial Statements. If you require a loan in excess of $50,000 Enterprise Brant requires accountant prepared Review Engagement Statements ii) Up to date financial statements Provide your internally prepared financial statements including Balance Sheet, Income Statement, List of aged accounts payable and list of aged accounts receivable. iii) Personal income tax filing for the prior year or CCRA notice of assessment Please verify your income with your most recent income tax return(s) iv) Company brochures, business cards, catalogues newspaper articles, etc. You may want to provide samples of your promotional materials. v) Market research Attach the results of any market or statistical research you may have compiled. vi) References Please list 2 people we may contact as references or next of kin not living with you. Include name, address, phone number and relationship. 1) 2) 3) 15

19 9. APPENDICES vii) Personal resume, attach. Please attach your resume or provide complete details of your past employment experiences and education or skills and training you have completed. Include references. Start & end date Employer/ address Position and responsibilities Year Education, skills, training Other: volunteer, professional memberships, interests Date Description References Name Address, Phone - Relationship 16

20 9. APPENDICES viii) WAIVER OF LIABILTY To: Enterprise Brant - operated by Brant Community Futures Development Corporation I,, acknowledge that I have approached Enterprise Brant operated by Brant Community Futures Development Corporation to obtain information for the business I/we are starting or operating. I understand that I am solely responsible for the success or failure of the/my business, and that any information which is provided to me by representatives of Enterprise Brant is for my consideration only, and that it is my responsibility to verify the accuracy of such information or to seek additional information concerning any aspects of the/my proposed business. I further agree to hold Enterprise Brant harmless and hereby release and discharge Enterprise Brant and its directors, officers and employees from any actions, damages, claims or demands which may arise, directly or indirectly, as a result for any act or omission by EB in providing information to me, and to indemnify Enterprise Brant from any such actions, damages, claims or demands which might be suffered by the/my business in connection with any such information. Dated:, 20 Signed by: 1) Witness Print Name: Signed by: 2) Witness Print Name: 17

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22 (insert at the beginning of the business proposal) EXECUTIVE SUMMARY The Executive Summary highlights the essential details of your business plan. Summarize the main facts and plan into three or four paragraphs on one page. If it s a new business include why you are starting the business. TIP : The executive summary is an introduction to your business. It is always presented at the beginning of your business plan but is prepared (as a summary) once the business plan has been fully completed. The outline below is a template to help you to write/complete your own Executive Summary. The company name, ownership structure and management team. The products and services you provide. The business objectives. Projected Sales and Profit Marketing Strategy and Competitive Edge Your goals and a time frame to meet the goals. Personal investment or contribution. Loan amount you are applying for and how will you use the funds and how long will it take to pay it back? New? Why are you starting the business and how can Enterprise Brant help? Self Employment Benefit Grant Program Applicants only: If you are unemployed and applying for the Self Employment Benefit Program delivered by Human Resources Development Canada how will the one year program help you and your business? What assistance or skills development can be provided throughout the one year program by the Enterprise Brant business consultants? 19