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Permanent Link: http://ufdc.ufl.edu/IR00002524/00001
 Material Information
Title: Your Business Plan Workbook
Physical Description: Fact Sheet
Creator: Torres, Nayda I
Publisher: University of Florida Cooperative Extension Service, Institute of Food and Agriculture Sciences, EDIS
Place of Publication: Gainesville, Fla.
Publication Date: 1991
 Notes
Acquisition: Collected for University of Florida's Institutional Repository by the UFIR Self-Submittal tool. Submitted by Melanie Mercer.
Publication Status: Published
General Note: "Publication date: November 1991."
General Note: "HE 7109"
 Record Information
Source Institution: University of Florida Institutional Repository
Holding Location: University of Florida
Rights Management: All rights reserved by the submitter.
System ID: IR00002524:00001


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FactSheetHE7109 TheInstituteofFoodandAgriculturalSciencesisanequalopportunity/affirmativeactionemployerauthorizedtoprovideresearch,educational informationandotherservicesonlytoindividualsandinstitutionsthatfunctionwithoutregardtorace,color,sex,age,handicap,ornational origin.Forinformationonobtainingotherextensionpublications,contactyourcountyCooperativeExtensionServiceoffice. FloridaCooperativeExtensionService/InstituteofFoodandAgriculturalSciences/UniversityofFlorida/JohnT.Woeste,DeanYourBusinessPlanWorkbook1 AdaptedbyNaydaI.TorresandGlennD.Israel2DEVELOPINGYOURBUSINESSPLANEverybusinessbeginswithanideaaproduct tobeproducedorsold,aservicetobeperformed.In developingyourbusinessplan,youare"puttingyour dreamontheroad." Businessplansservethreedifferentobjectives: 1.Theyserveasfeasibilityplansormarketingplans tohelpyouthinkthroughtheventureandensure thatyouhaveconsideredallyouroptionsand anticipatedpotentialdifficulties. 2.Theyserveasanoperating/proceduralplanby mappingoutthefirst3,6,or12months'financial needsandsettingproductionandmarketinggoals. 3.Theycanbeusedasatoolforsecuringloansfor thebusiness. Ittakestime,energyandpatiencetodrawupa satisfactorybusinessplan.Perhapsthatiswhyso manyhomebusinessownersputoffmakingone.But startinganewbusinessisnotimeforself-deception. Youshouldbeableto"stateyourbusiness:"inclear andsuccinctterms.Whatbusinessareyouin? Whereisyourmarket?Whoisyourcustomer? Whatisyourcustomerbuying?Whoisyour competition?Whatisyoursales/productionplan? Howwillyoumarketyourproduct?Howmuchstartupmoneydoyouneed?Willyouneedemployeesto gettheworkdone?Whatlicensesorpermitsdoyou need?Noonecananswerthesequestionsforyou. Asowner-manageryouwillhavetoanswerthemas youdrawupyourbusinessplan.Thefollowingpages containanoutlinedesignedtohelpyougetyourideas andsupportingfactsonpaper.BUSINESSPLANOUTLINE CoverIncludeonthecoverpagethenameofyour business,itsaddress,telephonenumberandlogo,if thereisone.(Alogoisanemblemusedtoidentify abusinessorproduct.Itgivesvisualcontinuityto yoursign,letterhead,businesscards,packaging,and printadvertising.)Giveyourplanabusiness-like appearancebytypingitonbondpaperandputtingin avinylorcardstockbinderorthree-ringnotebook.TitlePageRepeatthebusinessname,addressandphone numberandaddthenames,addressesandtelephone numbersoftheprincipalowners.Mosthome businessesaresoleproprietorships(oneowner). However,itcouldbeapartnershiporacorporation. Alsoincludethedateoftheplan.Ifyouareusing thebusinessplantosecurefinancing,thisistheplace tomakethatknown.Forexample:Submittedto McScroogeBankandTrustCompany. 1.ThisdocumentisFactSheetHE7109,aseriesoftheHomeEconomicsDepartment,FloridaCooperativeExtensionService,InstituteofFood andAgriculturalSciences,UniversityofFlorida.Publicationdate:November1991. 2.NaydaI.Torres,AssociateProfessorandFamilyandConsumerEconomicsSpecialist,andGlennD.Israel,AssociateProfessorandProgram andEvaluationSpecialist,CooperativeExtensionService,InstituteofFoodandAgriculturalSciences,UniversityofFlorida,GainesvilleFL 32611.

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YourBusinessPlanWorkbook Page2ExecutiveSummaryThisisabrief(onepage)summaryofthe businessplanpurposesandobjectives.Startwitha statementdescribingwhatthereaderisabouttoread, i.e.,"Thefollowinginformationhasbeencompiledto describetheproposed..."Addressthefollowing questionsandaddanyadditionalinformationthatwill helpyouachieveyourgoals.Beclear,conciseand specific. Whatisthepurposeofthisplan?Willitbeused as: Anoperatingguide? Afinancingproposal? Afeasibilityplan? Whatbusinessstructurehaveyouchosen(i.e., soleproprietorship,partnership,corporation). Whoaretheprincipalsandwhataretheir proportionsofownership? Whywilltheventurebesuccessful? Forafinancingproposal: Whoisrequestingthefundsandhowmuchis needed? Whatwillthemoneybeusedfor? Howwillthefundsberepaid? Whatcollateralwillbeofferedtosecuretheloan? Whydoesaloanorinvestmentmakesense? (Impactonlocaleconomy,jobcreation,increased taxbase,investmentinthefutureofthe community,etc.)TableofContentsWhenyouorsomeoneelseislookingoveryour businessplan,itiseasiertolocatesectionsofitif thereisatableofcontents(asinglepageshowing majortopicsandpagereferences).DescriptionoftheBusinessAnswerasmanyofthefollowingquestionsasare appropriate: Whatbusinessareyouin? Typeofbusiness(retail,wholesale,service provider,manufacturing,mailorder): Presentstatusofbusiness(start-up,expansion ofagoingconcern,takeoverofexisting business): Whatisthenatureoftheproduct(s), services(s)?Describe.Usediagrams, illustrationsorpicturesifpracticableand helpful. Whatamountofinventorymustyoukeepon hand? Whatwillbespecialaboutyourbusiness? Whyareyougoingtodothis? Whywillthisbeprofitable? Whywillyoubebetterthanyour competition?(SeeMarketAnalysisand Planning) Ifthisisanewbusiness,whendoyouplanto getitstarted?Whatisyourtargetdate? Listthehoursanddaysyouwillbeopen.Is thisaseasonalbusiness?Ifso,inwhich monthsdoyouanticipateyourgreatestsales? NOTE:Ifyourswillbeaseasonalbusiness, besuretheseasonalityisreflectedinyour narrativeandfinancialprojectionswith appropriatefootnotes. BusinessHistory(ifalreadyexisting) Founded-Bywhom?When? Whyisitbeingsold?Expanded? Howwasthepurchasepricedetermined? Givethebreakdownforbuilding, improvements,inventoryandgoodwill.

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YourBusinessPlanWorkbook Page3 Ifthebusinessisgoingdownhill,why? Howcanyouturnitaround? Howwillyourmanagementmakethe businessmoreprofitable? Whatchangesdoyouplantomakeinthe business? Ifyouareplanningtostartanewbusiness, completethefollowingquestionsafteryou havecompletedtheappropriatelatersections. Summarizetheabilitiesyouhavewhich willmakethisprofitable. Summarizeyourexperienceinthislineof businessfromyourresume. Summarizeyourresearchintothislineof business. Summarizeyoureffortstosecure supplies,servicesandcredit.Doyou havelettersofintentfromprospective suppliers? Ifyouwillbedoinganycontractwork, whataretheterms?Referenceanyfirm contractandincludeitasasupporting document. Howbigwillyourbusinessbeinoneyear? 5years? 10years? Howwillyoudescribethebusiness? Toyourfamily? Toyourcustomers? Toyourinvestors? Whatare/willbeyourspecialcompetencies? Whatpermits,requirements,and/orlicenseswill youberequiredtoobtain? Localbusinesslicenses: Howwillyoubeaffectedbylocalzoningand planningregulations? Isyourbusinessnameregisteredwiththe state? Doyouhaveataxnumber? Willyouneedahealthinspectionorlicense? Otherstaterequirements: Willyouneedanyfederallicenses? Otherregulations: Insurance:Describeyourpotentialbusinessrisks andtellwhatinsurancecoverageyouwill purchasetoprotectyourself(fire,liability, workerscompensation,productliability,etc.)MarketAnalysisandPlanningAMarketAnalysisbeginswiththeanswerto ``Whoismymarket?''Whoneedsyourproductor service?Canyouvisualizeyourcustomers?Arethey commercial?Industrial?Residential?Seasonal? Howdoyouplantoreachthem? Whatmarketdoyouintendtoserve?Whatis thetotalmarket?Isitallofthepeopleinthe UnitedState?IntheSoutheast?Florida?A multicountyarea?Yourlocalcommunity? Whatpercentage(segment)ofthatmarketis yours?Nowandinthefuture? Whatisthepresentsizeandgrowthpotentialof themarket?Ifitgrows,willyoursharegrowtoo? Whatwillyoudotoattractandkeepyour segmentofthismarketwithregardtothe following? Productquality Price Publicrelations Personalselling Howwillyoupriceyourmerchandiseorservices?

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YourBusinessPlanWorkbook Page4 Howwillyouserviceyourmarket?Willyou strivetoprovidebetterservice,betterproducts,or cheaperprices?Whatareyourplansfor satisfyingyourmarket? Howwillyouhandlecreditsales? Willyouextendyourowncredit? Willyouacceptmajorcreditcards? Whoisyourtargetcustomer(s)?Describetheir age,sexoccupation,lifestyle,needs,buyinghabits, income,etc.Aretheywealthy,poor,orofmiddle income?Aretheyoldoryoung?Lookatthe statisticsofyourmarketareatoanswerthese questions. Howisthecompetition? Brieflydescribeyourcompetition.Howdo youcomparewiththem?Howistheir businessdoing?Howmanyofthese businessesseemprosperous?Howmany seemasthoughthey'rebarelygettingby?Is thereroomforonemorebusinesslikeyours? Tellhowyouroperationissimilarand dissimilartotheirs. Doyourcompetitorshaveanyapparent advantagesoveryou?Howdoyouintendto overcometheseadvantages? Isthemarketsaturated?Howmanysimilar businesseswerediscontinuedinthelastthree years?Canyoudeterminewhytheyfailed? Whatareyourplansconcerningfuture competitors? Whatisyourmarketplan? Whatareyourmarketstrategies?Your productwillsellbecauseoneormoreofthe followingisattractive:theproductfeatures themselves,pricing(high,medium,low),the distributionsystemworkswellandis convenient,oryouradvertising(promotion)is successful. Describehowyouplantopromoteyour product/service.(Whattypeofpromotion willyouutilizeword-of-mouth,advertising, directmail,personalcontacts,sponsoring events,orothermeans?) Ifyouplantoadvertise,statewhatmediaor combinationofmediayouwilluse:radio, television,newspaper,magazines,telephone book,yellowpages,orother?Discusswhy youbelievethismethodtobethemost effective,andwhatsegmentofyourmarket youexpecttobeabletoreach. Discussthecontentofyourpromotionof advertising.Howwillyouinformthemarket astowhatyourproduct/serviceis?Howwill youdescribeit?Whyisitattractive?How andwhatwillyousayaboutyourbusiness address,businesshours,andphonenumber? Whattypeofimagedoyouwantyour advertisingtoproject,andwhy? NOTE:Whenyouaredesigningyour advertising,rememberthatyouaresellingto satisfysomeoneelse'sneed,soreferbackto yourmarketanalysistoexamineandevaluate thatneed.OperationsandLocationIfyouarelikemosthomebusinessowners,you willendupdoingmostoftheworkforawhile.Still, itisimportantforyoutofigureout,inadvance, exactlyhowyouaregoingtogeteverythingdonewith thetimeandmoneyyouhaveavailable.Berealistic aboutyourabilitytodoalltheworkthatmaybe involved. Whoisresponsibleforeachpartofthestartup andoperations?(Complete Table1.) Whoareyoursuppliers?Changeasappropriate. (Complete Table2.) Whereareyoulocated? Sinceyouareconsideringaplanforahome business,thelocationbecomesthehome address,butthereareotherfactorstobe consideredinlocation.Forexample,many mail-ordercustomerswillnotbuyfromyou unlessyouhaveareasonableaddress.That iswhymanyhomebusinessownershavepost officeboxesinaverywell-knownbusiness area.

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YourBusinessPlanWorkbook Page5 Whatarethephysicalfeaturesofyour Table1. NameOperationTimeNeededMoneyNeeded Table2. NameAddressProductTermsCostsShippingTime location(parkingspace,stepstoclimb, heatingandcooling,waitingspaceandfitting space,ifapplicable)?Willanychangesor repairsbeneeded?Howmuchwilltheycost? Howmuchspacewillyouneedforstorage? Forproduction?Forshipping,etc.? Shouldyouconsidermovingtoastorefront location?Atwhatpointinthesuccessofthe businessshouldyouconsidermoving? Addingon? Areyouconvenientlylocated?Easyfor customers/supplierstolocate?Ispublic transportationavailable?Isyourlocation conducivetodrop-incustomers?Willyou pickupanddeliver?OwnershipandManagementTohaveanaccurateideaofwhatthebusiness mustmakeinordertosupportitselfandyou,include yourownpersonalfinancialstatements,taxreturns forthepastthreeyears,andapersonalfamilybudget. Thisisusefulinformationforyouintermsoffinancial expectationsandismandatoryifyouareattempting tosecurefinancingfromanoutsidesource. Whatisyourbusinessandmanagementexperience? Whateducationhaveyouhad,includingbothformal andinformalcourses,whichcontributestoyour managerialabilities? Attachresumesforallkeymanagementpersonnel behindthispage.(Useanystandardformfor personaldata.) Areyouphysicallysuitedtothejob? Doyouhavedirectoperationaland/ormanagerial experienceinthistypeofbusiness? Describeyourorganizationalstructureandincludea briefdescriptionofwhodoeswhat.(Includean organizationalchartifnecessary.) Listproposedsalariesandwages. Whatothermanagementresourceswillbeutilized (accountant,lawyer,SmallBusinessDevelopment Center,etc.)?

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YourBusinessPlanWorkbook Page6Discusslocalcontactswhomayassistyouinyour business.PersonnelandServices Whatareyouranticipatedneedsforemployees? Whatskillsmustyouremployeeshave? Willyouhavetotrainpeople,andatwhatcost (money,time)? Whatkindsofemployeepolicieswillyouhave? Howwillyouhandlelayoffsorfirings?FinancialSourcesandUsesIfyouareseekingoutsidefinancing,youwillneed todescribetheprojecttobefinanced,statewherethe moneytopayfortheprojectwillcomefrom(sources) andhowitwillbeused(uses).Themostcommon usesareequipment,spaceimprovements,inventory andworkingcapital. SourcesofFunds (Complete Table3 andadd narrativesasrequired) UsesofFunds (Complete Table4) Table3. VentureCapital $ Loans $ Mortgages $ Equity $ TotalAvailableCash $The"TotalAvailableCash"shouldequalor Table4. PurchaseofProperty $ Construction $ CapitalGoods $ Inventory $ OperatingCapital $ Other $ TotalFundsNeeded $exceed"TotalFundsNeeded"foryourbusinessto beadequatelyfinanced. Includethefollowingfinancialstatementswith yourloanapplication: Capitalequipmentlist Currentbalancesheetandincomestatement (lessthen90daysold) Break-evenanalysis Profitandloss,seeProjectedProfitandLoss Statement detailbymonth,firstyear detailbyquarter,secondyear notesofexplanationandassumptions Cashflowprojections,seeCashFlow ProjectionChart detailbymonth,firstyear detailbyquarter,secondyear notesofexplanationandassumptions Projectedbalancesheet notesofexplanationandassumptions Foranexistingbusiness profitandlossstatement(lastthree years) balancesheets(lastthreeyears),see BalanceSheet businesstaxreturn(lastthreeyears)SupportingDocuments Personalresumesforallprincipals

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YourBusinessPlanWorkbook Page7 Personalfinancialstatementsandguaranteesfor allprincipals,seePersonalFinancialStatement Lettersofreference Letterofintentfromprospectivesuppliersor customers Copiesofallleases,contracts,oragreements, deedsorotherlegaldocuments Anyotherinformationthatmighthelpyourcause oranswerpotentialquestionsSOURCERowe,BarbaraR.andMarionT.Bentley. AHome BasedBusinessWorkshop:YourBusinessPlan. CooperativeExtensionService,UtahState University,1987.WORKSHEETSTable5. ProjectedProfitandLossStatementMonths1-6 Table6. ProjectedProfitandLossStatementMonths7-12 Table7. CashFlowProjectionsMonths1-6 Table8. CashFlowProjectionsMonths7-12 Table9. BalanceSheet Table10. PersonalFinancialStatement

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YourBusinessPlanWorkbook Page8 Table5. PROJECTEDPROFITANDLOSSSTATEMENT Month1 Month2 Month3 Month4 Month5 Month6 TotalNetSales CostofSales GROSSPROFIT CONTROLLABLE EXPENSES Salary PayrollTaxes Security Advertising Automobile Duesand Subscriptions Legaland Accounting OfficeSupplies Telephone Utilities Miscellaneous Controllable Expenses TOTAL FIXEDEXPENSES Depreciation Insurance Rent Taxesand Licenses LoanPayments (Interest) FixedExpenses TOTAL TOTALEXPENSES NETPROFIT (LOSS) (beforetaxes)

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YourBusinessPlanWorkbook Page9 Table6. PROJECTEDPROFITANDLOSSSTATEMENT Month7 Month8 Month9 Month10 Month11 Month12 Total TotalNetSales CostofSales GROSSPROFIT CONTROLLABLE EXPENSES Salary PayrollTaxes Security Advertising Automobile Duesand Subscriptions Legaland Accounting OfficeSupplies Telephone Utilities Miscellaneous Controllable Expenses TOTAL FIXEDEXPENSES Depreciation Insurance Rent Taxesand Licenses LoanPayments (Interest) FixedExpenses TOTAL TOTALEXPENSES NETPROFIT (LOSS) (beforetaxes)

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YourBusinessPlanWorkbook Page10 Table7. CASHFLOWPROJECTIONS Start-Uporprior toloan Month1 Month2 Month3 Month4 Month5 Month6 Cash(beg.ofmonth) Cashonhand CashinBank CashinInvestments TOTALCASH Income(duringmonth) CashSales CreditSalesPmts. InvestmentIncome Loans OtherCashIncome TotalIncome TOTALCASH& INCOME Expenses (duringmonth) Inventoryor NewMaterial Wages (includingowners) Taxes EquipmentExpense Overhead SellingExpense Transportation LoanRepayment (principal) OtherCashExpenses TOTALEXPENSES CASHFLOWEXPENSES (endofmonth) CASHFLOWCUMULATIVE (monthly)

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YourBusinessPlanWorkbook Page11 Table8. CASHFLOWPROJECTIONS Start-Uporprior toloan Month7 Month8 Month9 Month10 Month11 Month12 Total Cash(beg.ofmonth) Cashonhand CashinBank CashinInvestments TOTALCASH Income(duringmonth) CashSales CreditSalesPmts. InvestmentIncome Loans OtherCashIncome TotalIncome TOTALCASH& INCOME Expenses (duringmonth) Inventoryor NewMaterial Wages (includingowners) Taxes EquipmentExpense Overhead SellingExpense Transportation LoanRepayment (principal) OtherCashExpenses TOTALEXPENSES CASHFLOWEXPENSES (endofmonth) CASHFLOW CUMULATIVE(monthly)

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YourBusinessPlanWorkbook Page12 Table9. BALANCESHEET _____________,19____ YEARIYEARII CurrentAssets Cash $ $ Accountsreceivable $ $ Inventory $ $ FixedAssets RealEstate $ $ Fixturesandequipment $ $ Vehicles $ $ OtherAssets License $ $ Goodwill $ $ TOTALASSETS $ $ CurrentLiabilities Notespayable(duewithinoneyear) $ $ Accountspayable $ $ Accruedexpenses $ $ Taxesowed $ $ TOTALLIABILITIES $ $ NETWORTH(AssetsminusLiabilities) $ $ TOTALLIABILITIESplusNETWORTHshouldequalASSETS

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YourBusinessPlanWorkbook Page13 Table10. PERSONALFINANCIALSTATEMENT ____________,19____ ASSETS Cash $ Savingsaccounts $ Stocks,bonds,othersecurities $ Accounts/Notesreceivable $ Lifeinsurancecashvalue $ Rebate/Refunds $ Autos/Othervehicles $ Realestate $ Vestedpensionplan/RetirementAccounts $ Otherassets $ TOTALASSETS $ LIABILITIES Accountspayable $ Contractspayable $ Notespayable $ Taxespayable $ Realestateloans $ Otherliabilities $ TOTALLIABILITIES $ TOTALASSETS $ LESSTOTALLIABILITIES $ NETWORTH $