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Ahmed Rabea
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Table of Contents
1. Executive Summary ..................................................................... 1
2. Company Overview ..................................................................... 2
a. Company Summary .............................................................2
b. Vision Statement .................................................................2
c. Mission Statement...............................................................2
d. Values and Philosophy.........................................................2
e. Goals and Objectives ...........................................................2
f. Legal Form ...........................................................................3
g. Company History .................................................................3
h. Location ...............................................................................3
i. Market Overview .................................................................3
j. Operational Overview .........................................................3
3. Company Overview Sheet ........................................................... 5
4. Business Description ................................................................... 6
a. Opportunity .........................................................................6
b. Product Overview ................................................................6
c. Features and Benefits ..........................................................6
d. Key Participants ...................................................................7
e. Pricing ..................................................................................7
5. Business Overview Sheet............................................................. 8
6. Market Analysis ......................................................................... 10
a. Industry Category ............................................................. 10
b. Market Segmentation....................................................... 10
c. Competition ...................................................................... 11
d. SWOT Analysis .................................................................. 11
7. Market Overview Sheet............................................................. 13
8. Operating Plan ........................................................................... 15
a. Ordering Product and Service .......................................... 15
b. Payment............................................................................ 15
c. Technology ....................................................................... 15
d. Product and Service Sourcing ........................................... 15
e. Supply Chain Management .............................................. 15
 f. Inventory Management .................................................... 16
g. Key Customers .................................................................. 16
h. Organizational Structure and Key Employees .................. 16
i. Roles and Responsibilities ................................................ 16
j. Facilities and Equipment .................................................. 17
k. Premises ........................................................................... 17
9. Marketing and Sales Plan .......................................................... 18
a. Key Message ..................................................................... 18
b. Marketing Strategy and Activities .................................... 18
i. Product .......................................................................... 18
ii. Place .............................................................................. 18
iii. Promotions ............................................................... 18
• Promotional Budget ...................................................... 19
iv. Price .......................................................................... 19
v. Process .......................................................................... 19
vi. Distribution Channels ............................................... 19
vii. People ....................................................................... 20
viii. Physical Evidence ...................................................... 20
c. Growth Strategy ............................................................... 20
d. Sales Strategy ................................................................... 20
i. Unique Selling Points..................................................... 20
ii. Sales Plan....................................................................... 20
iii. Sales Process............................................................. 21
iv. 12 Months Sales Forecast ......................................... 21
10. Financial Plan ........................................................................ 23
a. Start Up Cost..................................................................... 23
b. Opening Day Balance Sheet.............................................. 25
c. Personal Financial Statement ........................................... 25
d. 12 Months Projected Profit and Loss ............................... 25
e. 3-Years Projected Profit and Loss (OPTIONAL)................. 27
f. Projected Cash Flow ......................................................... 27
g. 3-Years Cash Flow Statement (OPTIONAL) ....................... 27
h. Projected Balance Sheet ................................................... 27
i. Break-even Analysis .......................................................... 27

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11. Conclusion and Recommendations ....................................... 29
12. Annexes ................................................................................. 30
a. SWOT Analysis Worksheet ............................................... 30
b. Competitive Analysis Worksheet...................................... 31
c. Competitor Data Collection Form .................................... 33
d. Marketing Strategy Expense Sheet .................................. 34
e. Pricing Strategy Worksheet .............................................. 35
f. Distribution Channels Assessment Worksheet ................ 36
g. Startup Cost Sheet ............................................................ 37
h. Profit Loss Model Sheet .................................................... 38
i. Other Documents ............................................................. 39

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1. Executive Summary
What will be your product or service? Who will be your customers? Who are the owners? What
do you think the future holds for your business and your industry?

If applying for a loan, state clearly how much you want? precisely how you are going to use
it? and how the money will make your business more profitable? thereby ensuring repayment.

• Opportunity: What problem will the business solve?

• Mission: How will your business solve these problems?

• Solution: How will the service uniquely solve the problem identified? Brief
description of your product or service

• Goals and Objectives: Where do you expect the business to be in one year, three
years, five years?

• Market focus: What market and ideal customers will the business target?

• Competitive advantage: How does the business intend to succeed against its
competitors? Who are you up against, and what unique selling proposition will help
you succeed?

• Ownership: Who are the major stakeholders in the company? Key management and
what do they bring to your success

• Expected returns: What are the key milestones for revenue, profits, growth, and
customers?

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2. Company Overview

a. Company Summary
Introduce the company briefly, brand name, meaning of the name, slogan or tag line (if any)
and what it means, registered name, age of the company, brief description of what you do and
stand for. Owner and founders (if any), goals, achievements and forecasted milestones.

b. Vision Statement
What do you want to be in 10 or 15 years, how do you see your business in 100 or 15 years?
It doesn’t have to be SMART objectives, rather it’s a measurable dream. Think of what you dream
and how are you going to know that you reached your dream. Its better be short, clear two or three
sentences.

c. Mission Statement
How are you going to achieve your vision, it is more detailed than the vision but still clear
and short. Your basic reason for existence, and your guideline for survival. What your business offer
to your customers, employees, owners and other stakeholders. The mission statement could be
defined in terms of: Your Target Audience (who are they?). Products, Services or Offerings. Location
of Business, Geographic Region. Technology. Concern for Survival. Philosophy (beliefs, values,
aspirations and philosophical priorities). Self-Concept (what are our strengths?). Concern for Public
Image. Concern for Employees

d. Values and Philosophy

What values does your business live by? Honesty, integrity, fun, innovation and community
are values that might be important to your business philosophy.

e. Goals and Objectives

Goals are destinations—where you want your business to be. Objectives are progress
markers along the way to goal achievement. For example, a goal might be to have a healthy,
successful company that is a leader in customer service and that has a loyal customer following.
Objectives might be annual sales targets and some specific measures of customer satisfaction.

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f. Legal Form
Sole proprietor, Partnership, Corporation, Limited liability corporation (LLC)? Why have you
selected this form? If there is more than one owner, explain how ownership is divided. If you have
investors, explain the percentage of shares they own. This information is important to investors and
lenders.

g. Company History
This provides the back story, especially the personal story, of why the business was
founded. Use this section to give the overarching history of the company from its start and bring
the reader up-to-date on where the company is now in terms of sales, profits, key services, and
customers.

h. Location
The people you're communicating with through your business plan will have an interest in
the location of your company. In this section, describe the location of your business and other
details, like area particulars and rent typically charged in surrounding areas. The objective is to
suggest a high traffic area in a good location that would produce a great number of sales. Other
statistics might include the number of businesses, hotels, hospitals, schools and the population
data of the area. These can help predict sales figures as well.

i. Market Overview
This outlines the target market and related needs that the company will address. Include
brief descriptions of offered services and targeted markets and customer types. This section can be
a general overview as more details will be suggested in a later section of this plan. Also, describe
your industry and what makes your business competitive: Is the industry growing, mature or stable?
What is the industry outlook long-term and short-term? How will your business take advantage of
projected industry changes and trends? What might happen to your competitors and how will your
business successfully compete?

j. Operational Overview
This describes the operational details of the business. List any potential employees needed
on the payroll to make the business run.

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3. Company Overview Sheet

Business Name

Company Vision

Company Mission
Statement

Company Values
and Philosophy

1. A

Goals and
2. B
Objectives
Milestones 3. C

4. D

Legal Form and

Ownership

1. A
Industry
2. B
Competitors

3. C

4. D

Target Market

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4. Business Description
a. Opportunity
Describe the current market for the business’ offered service. At a high level, what is the
market and who are its participants; is it business customers or consumers; what is the specific
geography, etc.? More details on the market will be provided in the next section of the plan. Next,
describe the current state of available services and how the business will offer better. Also discuss
any additional services the company plans to offer in the future.

b. Product Overview
Describe the service offerings of the business in as much detail as possible. If it is effective
to include pictures, this would be a good place to place them. What do you sell, and how is it
manufactured or provided? Include details of relationships with suppliers, manufacturers and/or
partners that are essential to delivering the product or service to customers. Every business needs
to solve a problem that its customers face. Explain what the problem is and how your product or
service solves it. What are its benefits, features and unique selling proposition? Yours won’t be the
only solution (every business has competitors), but you need to explain why your solution is better
than the others, targets a customer base your competitors are ignoring, or has some other
characteristic that gives it a competitive edge.

c. Features and Benefits

List all of your major products or services. For each product or service describe the most
important features. What is special about it? Then, describe the benefits. That is, what will the
product do for the customer?

Note the difference between features and benefits, and think about them. For example, a
house that gives shelter and lasts a long time is made with certain materials and to a certain
design; those are its features. Its benefits include pride of ownership, financial security, providing
for the family, and inclusion in a neighborhood. You build features into your product so that you
can sell the benefits.

What after‐sale services will you give? Some examples are delivery, warranty, service
contracts, support, follow‐up, and refund policy. Do you have a patent on your product or a patent
pending? Do you have exclusive agreements with suppliers or vendors to sell a product or service
that none of your competitors sell? Do you have the license for a product, technology or service
that’s in high demand and/or short supply?

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d. Key Participants
Identify any strategic partners in the business, such as critical suppliers, distributors,
referral partners, or any others. In some businesses, products are custom-made and any break in
their supply will impact the business. There may be key contributors to the services offered, so it is
important to identify them.

e. Pricing
How you will price your product or service: Describe the pricing, fee, subscription or leasing
structure of your product or service. How does your product or service fit into the competitive
landscape in terms of pricing—are you on the low end, mid-range or high end? How will that pricing
strategy help you attract customers? What is your projected profit margin?

Provide pricing of the service, gross margin projects, and upgrade paths. Describe why the
company’s pricing will be attractive to the target market. Have a gauge on the competitor’s pricing
and explain how the business’ service is unique to justify its pricing structure.

Note the difference between working hours and billable hours. All working hours are not
billable. If the business has employees with differing skill levels (for example, in a law practice,
there are associates, paralegals, lawyers, partners, etc.), indicate the various billing rates.

Communicate rates clearly to clients and customers. If there are potential additional fees
which will be passed on to clients or customers, define and establish them up front.

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5. Business Overview Sheet

Business Name

1. A

2. B
Opportunities
3. C

4. D

Product/ Service
Idea

Special Benefits

Unique Features

Limits and
Liabilities

Production and
Delivery

Suppliers

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Intellectual Property
Special Permits

Product/Service
Description

Pricing Strategy

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6. Market Analysis
a. Industry Category
Begin with the broader descriptions of the market opportunity. For instance, if the intended
business is a travel agency, the industry type would be service industry. In this particular market,
the global revenues are projected to exceed $183 billion, but the local agency will have a much
smaller market. Identify the potential clientele in the company’s local geography that might fit into
the target demographic group. This section will also identify any industry regulations and evaluate
trends in market growth and stability.

Facts about your industry such as what is the total size of your market? What percent share
of the market will you have? (This is important only if you think you will be a major factor in the
market.). Current demand in target market. Trends in target market—growth trends, trends in
consumer preferences, and trends in product development. Growth potential and opportunity for a
business of your size. What barriers to entry do you face in entering this market with your new
company? Some typical barriers are: 1) High capital costs. 2) High production costs. 3) High
marketing costs. 4) Consumer acceptance and brand recognition. 5) Training and skills. 6) Unique
technology and patents. 7) Unions. 8) Shipping costs. And of course, how will you overcome the
barriers? How could the following affect your company? 1) Change in technology. 2) Change in
government regulations. 3) Change in the economy. 4) Change in your industry.

b. Market Segmentation
This section defines the main market segments and those the business is targeting now. A
market segment is a group of people (or other businesses) within the industry, identify smaller
segments, such as luxury travel or exotic cruisers. The market can also be segmented by criteria
such as quality, price, range of products, geography, demographics, and others. A few other
elements to consider answer questions such as: Is the segment growing, shrinking, or will it be flat
for the next few years? What percentage of the market will be reachable? What share of the market
is anticipated within the next 2-3 years? Graphics are best used in a section like this to either show
growth (line graph) or percentages of markets or groups (pie chart).

Identify your targeted customers, their characteristics, and their geographic locations,
otherwise known as their demographics. The description will be completely different depending on
whether you plan to sell to other businesses or directly to consumers. If you sell a consumer
product, but sell it through a channel of distributors, wholesalers, and retailers, you must carefully
analyze both the end consumer and the middleman businesses to which you sell.

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You may have more than one customer group. Identify the most important groups. Then, for
each customer group, construct what is called a demographic profile: Age, Gender, Location,
Income level, Social class and occupation, Education, Other (specific to your industry).

For business customers, the demographic factors might be: Industry (or portion of an
industry), Location, Size of firm, Quality, technology, and price preferences, Other (specific to your
industry).

In one short paragraph, define your niche, your unique corner of the market.

c. Competition
All businesses compete in one way or another. It may be with specific, direct competitors or
it may be with the way customers have been doing things for a long time. When identifying the
competition, identify who else is providing services to solve the same problem the business seeks
to address. What are the business’ advantages over these competitors? How will the company’s
voice be heard over the noise of competitors? Sometimes a business plan includes a matrix of
features and compares how each business offers or does not offer those features. This section
reflects how the company’s solution is different and better suited for the identified target market
compared to the competition.

What products and companies will compete with you? List your major competitors: (Names
and addresses). Will they compete with you across the board, or just for certain products, certain
customers, or in certain locations? Will you have important indirect competitors? (For example,
video rental stores compete with theaters, although they are different types of businesses). How will
your products or services compare with the competition?

d. SWOT Analysis
A SWOT analysis may be included by completing the boxes below to assess the business’
current environment’s strengths and weaknesses (internal) and opportunities and threats (external).
This is a good exercise to go through on an annual basis. After completing the analysis, provide
thoughts on: how the business’ strengths can help maximize opportunities and minimize threats;
how its weaknesses can slow the company’s ability to capitalize on the opportunities; and how the
business’ weaknesses could expose it to threats.

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STRENGTHS WEAKNESSES
• Advantage • Disadvantages
• Capabilities • Gap in capabilities
• Assets, people • Cash Flow
• Experience • Suppliers
• Financial reserves • Experience
• Value proposition • Areas to improve
• Price, value, quality • Causes of lose sales

SWOT
OPPORTUNITIES THREATS
• Areas to improve • Economy
• New segments movement
• Industry trends • Obstacles faced
• New products
• Competitor actions
• New innovations
• Key partnership • Political impacts
• Environmental
effects
• Loss of key staff
• Market demand

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7. Market Overview Sheet

Business Name

Industry Category

Market Size

Market Demand and

Growth

Barriers

Barriers
Overcoming

Target Market
Groups

Niche Segment

Key Competitors

Key Advantageous

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Key Strengths

Kea Weaknesses

Key Opportunities

Key Threats

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8. Operating Plan
a. Ordering Product and Service
Describe the company’s procedures for delivering services to its customers. As a service
company, determine how to keep track of the customer base, form of communications, and how
best to manage sales and data. How will you will produce your product or deliver your service?
Describe your production methods, the equipment you’ll use and how much it will cost to produce
what you sell.

b. Payment
Describe the standard payment terms and the payment methods accepted. Describe the
pricing plans (one-time service fees, hourly-based fees, markups, and any other fees) and any
impact on cash flow. If you plan to sell to customers on credit, explain: Whether this is typical in
your industry (do customers expect it)? What your credit policies will be. How much credit will you
extend? What are the criteria for extending credit? How will you check new customers’
creditworthiness? What credit terms will you offer? Detail how much it will cost you to offer credit,
and show that you’ve built these costs into your pricing structure. How will you handle slow-paying
customers? Explain your policies, such as when you will follow up on late payments, and when you
will get an attorney or collections agency involved.

c. Technology
If technology is critical to the business, whether it is part of the service offering or is
fundamental to delivering a service, describe the key technologies used that are proprietary. If the
business data (company or customer) is at risk, describe the data security plan in place, as well as
any backup or recovery in the case of a disaster or outage.

d. Product and Service Sourcing

If you depend on different sources to provide your products and services such as shipment
or delivery companies, support and maintenance companies, or outsourced services such as contact
centers, explain: What products or services that has dependencies? What are those dependencies?
List the name, address, contact numbers, emails, websites of third party providers. What is the level
of credibility and history of providers? List back-up providers. Payment terms.

e. Supply Chain Management

List your key suppliers, including: Names, addresses, websites. Type and amount of
inventory furnished. Their credit and delivery policies. History and reliability. Do you expect any

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supply shortages or short-term delivery problems? If so, how will you handle them? Do you have
more than one supplier for critical items (as a backup)? Do you expect the cost of supplies to hold
steady or fluctuate? If the latter, how will you deal with changing costs? What are your suppliers’
payment terms?

f. Inventory Management
If your business requires inventory, explain: What kind of inventory will you keep on hand
(raw materials, supplies, finished products)? What will be the average value of inventory (in other
words, how much are you investing in inventory)? What rate of inventory turnover do you expect?
How does this compare to industry averages? Will you need more inventory than normal during
certain seasons? (For instance, a retailer might need additional inventory for the holiday shopping
season). What is your lead time for ordering inventory?

g. Key Customers
Identify any customers that are important to the success of the business due to a
partnership, volume, or pathway to a new market. Also identify any customers who bring in more
than 10% of the company’s revenues.

h. Organizational Structure and Key Employees

Develop and include an organization chart. This should include both roles that you’ve
already filled and roles you plan to fill in the future. Describe unique skills or experiences that are
required of the current team. If necessary, describe any proprietary recruiting or training processes
in place. List key employees that are necessary for success. Include an organization chart to
support this section.

What type of personnel will your business need? Explain details such as: What types of
employees? Are there any licensing or educational requirements? How many employees will you
need? Will you ever hire freelancers or independent contractors? Include job descriptions. What is
the pay structure (hourly, salaried, base plus commission, etc.)? How do you plan to find qualified
employees and contractors? What type of training is needed and how will you train employees?

i. Roles and Responsibilities

Describe roles and responsibilities of departments, teams, employees. Include job
description for all existing and forecasted posts.

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j. Facilities and Equipment

Describe the type of business facility, whether leased, owned, or a shared business
premises. Provide a listing of business locations, their purpose, and future plans for these facilities.
If there are no facilities, and the business plans to buy or lease them, include that in this plan.

k. Premises
In this section, expand on that information with details such as: The size of your location.
The type of building (retail, industrial, commercial, etc.). Zoning restrictions. Accessibility for
customers, employees, suppliers and transportation if necessary. Costs including rent,
maintenance, utilities, insurance and any buildout or remodeling costs. Utilities. Layout requirement
to operation or governmental rules and restrictions.

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9. Marketing and Sales Plan

a. Key Message
Describe the key messages that will elevate services in the target customers’ eyes. If there is
sample collateral or graphical images of some messages, include them.

b. Marketing Strategy and Activities

i. Product

How will you will produce your product or deliver your service? Describe your production
methods, the equipment you’ll use and how much it will cost to produce what you sell. How will you
maintain consistency? Describe the quality control procedures you’ll use.

ii. Place

Probably you do not have a precise location picked out yet, even if you have selected a
location or you acquired one. This is the time to think about what you want and need in a location.
Many startups run successfully from home for a while. Here, analyze your location criteria as they
will affect your customers. Is your location important to your customers? If yes, how?

If customers come to your place of business: Is it convenient? Parking? Interior spaces?

Zoning? Types of businesses nearby? Not out of the way? Is it consistent with your image? Is it what
customers want and expect? Where is the competition located? Is it better for you to be near them
(like car dealers or fast food restaurants) or distant (like convenience food stores)?

iii. Promotions

How will you get the word out to customers? Advertising: What media, why, and how often?
Why this mix and not some other? Have you identified low‐cost methods to get the most out of your
promotional budget? Will you use methods other than paid advertising, such as trade shows,
catalogs, dealer incentives, word of mouth (how will you stimulate it?), and network of friends or
professionals? What image do you want to project? How do you want customers to see you?
Advertising may include: Online, Print, Radio, Cable television, Out-of-home, Sponsorships,

In addition to advertising, what plans do you have for graphic image support? This includes
things like logo design, cards and letterhead, brochures, signage, and interior design (if customers
come to your place of business). Should you have a system to identify repeat customers and then
systematically contact them?

Which of the following promotion options provide the company the best chance of product
recognition, qualified leads, store traffic, or appointments? Media advertising (newspaper,
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magazine, television, radio). Direct mail. Telephone solicitation. Seminars or business conferences.
Joint advertising with other companies. Word of mouth or fixed signage. Networking. Referrals.
Digital marketing such as social media, email marketing, SEO, content marketing or blogging. Print
marketing materials (brochures, flyers, business cards). Public relations. Trade shows. Provide
limited free consultations (such as free job pricing for Contractors, free landscaping consultation
for landscapers, or free pricing opinions for real estate agents). Sponsor local sports teams or other
community events. Give free informational talks either at the business offices or for local
businesses offering complementary services (such as a real estate agent providing seminars about
preparing a home to bring to market). Do free work for local non-profits (such as an ad agency
designing a local farmer’s market’s website for free)

• Promotional Budget

How much will you spend on the items listed above? Before startup? (These numbers will go
into your startup budget.) Ongoing? (These numbers will go into your operating plan budget.)

iv. Price

Explain your method or methods of setting prices. For most small businesses, having the
lowest price is not a good policy. It robs you of needed profit margin; customers may not care as
much about price as you think; and large competitors can underprice you anyway. Usually you will
do better to have average prices and compete on quality and service. Does your pricing strategy fit
with what was revealed in your competitive analysis? Does it reflect your positioning? Compare your
prices with those of the competition. Are they higher, lower, the same? Why? How important is price
as a competitive factor to your customers? Do your intended customers really make their purchase
decisions mostly on price? What will be your customer service and credit policies?

What would be your pricing strategy? Competition-based pricing, Cost-plus pricing, Dynamic
pricing, Penetration pricing, Price skimming, Premium pricing, Loss leader pricing, Psychological
pricing, Value pricing or another.

v. Process

It describes a series of actions that are taken in delivering the product or service to the
customer. Each step that you take and the methods that you choose to use for these processes
must be done in a way that minimizes the costs on your part, whilst also maximizing benefits and
value for your customer.

vi. Distribution Channels

How do you sell your products or services? Retail, direct (mail order, Web, catalog),
wholesale, your own sales force, agents, independent representatives, bid on contracts, e-
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commerce. Also describe strategic partnerships or key distributors relationships and how would
they contribute to your business, if any.

vii. People

It is anyone directly, or indirectly, involved in the business-side of the enterprise. From

product development to sales employees to customer service and support. Employing and retaining
the right people is imperative in both the long and short term success of your business.

viii. Physical Evidence

Describe how will you communicate the legitimacy, credibility, reliability or other qualities of
your products or services. You need to validate your brand as well as your product or service
through brand display, sponsorships, business cards, letterheads, product demos, service trails,
sample distributions (freebies), expert testimonials and reviews, customer ratings and reviews, etc.

c. Growth Strategy
It is the plan of action that allows you to achieve a higher level of market share than you
currently have through overcoming current and future challenges to realize its goals for expansion.
There are four basic growth strategies you can employ to expand your business: market
penetration, product development, market expansion and diversification.

d. Sales Strategy
i. Unique Selling Points

Define the factors that differentiates your products or services from its competitors, such as
the lowest cost, the highest quality or the first-ever product of its kind. Your USP must be linked to
your target audience, it should solve or contribute in solving your customer’s problem or need. List
all your USPs starting with the most distinctive, articulate your promise to your customer and tie it
to your products and services.

ii. Sales Plan

Sales plan is your roadmap for the coming year or years. It’s where you set specific sales
goals for your business and define the actions you’ll need to take to reach them. If done right, it
can help you take a more strategic, big-picture approach to growing your business.

For sales plan: 1) Identify your goals (revenue, margin, quantity, or any measurement of
growth), Is there a new market you want to enter? Do you want to grow your team? Launch a new
product or service? 2) Get specific about your targets, Test your assumptions. Is there demand for
your product or service? What sort of competition will you face? 3) Allocate resources, do you have
enough full- and part-time employees to implement the plan? Will anybody be away on vacation or
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maternity leave? Can you get help from employees who aren’t in sales or marketing roles? How
much money will you need to invest to achieve every target? Do you need any new systems or do
you have something already in place? What kinds of marketing materials do you have to support
your sales team? 4) Define your key performance indicators (KPI).

iii. Sales Process

Your sales process defines steps to be followed and roles for team members, putting it
down on paper allows you to plan, forecast, evaluate performance and optimize what you do. 1)
Briefly describe the steps of your actual sales process or the best fit sales process, most common
steps are: Prospecting, Preparation, Approach (Connecting), Qualifying, Nurturing (Building Trust),
Presentation, Handling objections, Closing, and Follow-up. 2) Map the details of your process, how
many emails do you need to send? How many phone calls are you making? Who are you talking to?
Whatever the building blocks of the sale are, define those and that becomes your process. It may
include details about: generating leads, sending proposals, negotiations, sales confirmation,
delivery, receiving final payments, etc. 3) Define your KPIs, you can track prospects progress,
measure how many leads are successful, measure average time for full sales cycle, measure service
turnaround time, sales to date this month, sales to date this year, closing rate, burn rate (How
much money you are spending in your sales process), average sales price, lifetime customer value,
customer acquisition cost, churn rate (How many customers repurchase your services or products).
4) Follow-up and measure performance. 5) Use technology to simplify monitoring. 6) Start
forecasting your sales. 7) Increase sales through increasing average order size and improving
conversion rate.

iv. 12 Months Sales Forecast

If you’ve already made some sales, you can use those as a basis for your projections. If, like
most startups, you haven’t sold anything yet, you’ll need to create estimates based on your market
research, your proposed marketing strategies and your industry data.

Create two forecasts: a “best guess” scenario (what you really expect) and a “worst case”
scenario (one you’re confident you can reach no matter what). Keep notes on the research and
assumptions that go into developing these sales forecasts. Financing sources will want to know
what you based the numbers on.

After reading the Marketing Plan section, the reader should understand who your target
customers are, how you plan to market to them, what sales and distribution channels you will use,
and how you will position your product/service relative to the competition.

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10. Financial Plan

a. Start Up Cost
The following table shows a sample of ongoing and one-time cost items that the business
might need in order to open. Many businesses are paid on credit over time and do not have cash
coming in immediately. It is necessary to make assumptions about how many months of recurring
items, in addition to one-time expenses, to estimate when cash will begin to flow into the company.
To begin with, the company will have to fund out of savings or an initial investment. There is a
blank table in the Annexes to complete potential start-up cost projections. You Can use the
attached excel file as a template to assist you up

In the body of this section, be sure to explain all of the assumptions behind the figures.
How did you come up with these expenses? If you’ve secured or expect to secure loans, explain the
source/s, amount/s and terms. If you’ve secured or expect to secure investors, explain how much
each investor will contribute and what percentage of ownership each receives in return.

Be sure to include extra capital for unexpected expenses. Opening a new business almost
always ends up costing more than expected, and you need to be prepared. List this figure in the
Start-Up Expenses template under “Reserve for Contingencies.” How much should you set aside for
contingencies? You can talk to other business owners in your industry to get a ballpark figure. If
you can’t come up with a figure this way, a good rule of thumb is to set aside 20% to 25% of your
total startup costs for contingencies.

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START-UP COSTS
Your Office-Based Agency January 1, 20xx
COST ITEMS MONTHS COST/ MONTH ONE-TIME COST TOTAL COST
Advertising/Marketing 3 $300 $2,000 $2,900
Employee Salaries* 4 $500 $2 $2,002
Employee Payroll Taxes and Benefits 4 $100 $1,500 $1,600
Rent/Lease Payments/Utilities 4 $750 $2,500 $5,500
Postage/Shipping 1 $25 $25 $50
Communication/Telephone 4 $70 $280 $560
Computer Equipment $0 $1,500 $1,500
Computer Software $0 $300 $300
Insurance $0 $60 $60
Interest Expense $0 $0 $0
Bank Service Charges $0 $0 $0
Supplies $0 $0 $0
Travel & Entertainment $0 $0 $0
Equipment $0 $2,500 $2,500
Furniture & Fixtures $0 $0 $0
Leasehold Improvements $0 $0 $0
Security Deposit(s) $0 $0 $0
Business Licenses/Permits/Fees $0 $5,000 $5,000
Professional Services - Legal, Accounting $0 $1,500 $1,500
Consultant(s) $0 $0 $0
Inventory $0 $0 $0
Cash-On-Hand (Working Capital) $0 $1,000 $1,000
Miscellaneous $0 $2,000 $2,000
ESTIMATED START-UP BUDGET $26,472
*Based on part-time employees. This may change once you hit your growth benchmark.

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b. Opening Day Balance Sheet

Use it to detail the expected state of your business finances on opening day. As with the
Start-Up Expenses sheet, be sure to explain the assumptions behind the figures. You Can use the
attached excel file as a template to assist you up

c. Personal Financial Statement

If you are using the business plan to seek financing, include personal financial statements
for each owner and each major stockholder. The personal financial statements should detail each
person’s assets and liabilities outside of the business and their personal net worth. Investors
and/or lenders typically expect business owners to use personal assets to finance a startup, and
they’ll want to see how much capital you have available from your personal finances.

d. 12 Months Projected Profit and Loss

The model below shows a sample of the projections a small business is forecasting for their
first 12 months of operations. The top portion of the table shows projected sales and gross profit.
This is a good place to begin creating the company’s sales forecast. The next section itemizes the
recurring expenses the business is projecting for the same months. These should be consistent
with the estimated start-up costs completed in the prior section. At the bottom of this model, it will
possible to see when the company is becoming profitable and what expense items are the most
impactful to its profitability. There is a blank table in the Annexes to complete the business’ own
start-up cost projections. You Can use the attached excel file as a template to assist you up.

Be sure to explain the assumptions behind the numbers in your P&L. Keep detailed notes
about how you came up with these figures; you may need this information to answer questions
from potential financing sources.

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PROFIT AND LOSS MODEL

Your Office-Based Agency January 1, 20xx
REVENUE JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
Estimated $13, $16, $7,00 $14, $16,4 $22, $23, $24,5 $22,0 $25, $27,3 $216,
$5,000
Sales 000 000 0 500 00 500 125 49 00 000 49 423
Less Sales
($35 ($206 ($23 ($28 ($1,2 ($1,6 ($2,4 ($6,27
Returns & $0 $0 $0 $0 $0
0) ) 4) 0) 00) 00) 00) 0)
Discounts
Service $1,2 $1,36 $3,30
$0 $0 $0 $0 $0 $250 $350 $100 $0 $0
Revenue 45 0 5
$1,5 $1,50
Other Revenue $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
00 0
$12, $16, $6,79 $14, $16,6 $22, $24, $23,3 $20,4 $26, $26,3 $214,
Net Sales $5,000
650 000 4 266 50 850 445 49 00 245 09 958
Cost of Goods $5,2 $6,4 $2,80 $5,8 $6,56 $9,0 $9,2 $9,82 $8,80 $10, $10,9 $86,5
$2,000
Sold* 00 00 0 00 0 00 50 0 0 000 40 69
$7,4 $9,6 $3,99 $8,4 $10,0 $13, $15, $13,5 $11,6 $16, $15,3 $128,
Gross Profit $3,000
50 00 4 66 90 850 195 29 00 245 69 389
EXPENSES JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
Salaries & $2,5 $3,5 $5,00 $5,0 $5,00 $8,0 $9,0 $9,00 $9,00 $9,0 $9,00 $76,5
$2,500
Wages 00 00 0 00 0 00 00 0 0 00 0 00
Marketing/Adv $1,2 $1,20 $9,55
$400 $450 $450 $450 $900 $900 $900 $900 $900 $900
ertising 00 0 0
Sales $1,1 $1,1 $1,22 $1,10 $1,2 $1,36 $10,8
$250 $650 $800 $350 $725 $820
Commissions 25 56 7 0 50 7 21
$1,2 $1,2 $1,25 $1,2 $1,25 $1,2 $1,2 $1,25 $1,25 $1,2 $1,25 $15,0
Rent $1,250
50 50 0 50 0 50 50 0 0 50 0 00
$2,65
Utilities $250 $150 $200 $200 $200 $250 $250 $250 $200 $200 $250 $250
0
Website $2,20
$175 $175 $175 $175 $175 $175 $175 $175 $175 $175 $225 $225
Expenses 0
Internet/Phon $1,32
$110 $110 $110 $110 $110 $110 $110 $110 $110 $110 $110 $110
e 0
$1,98
Insurance $165 $165 $165 $165 $165 $165 $165 $165 $165 $165 $165 $165
0
$1,82
Travel $100 $0 $0 $250 $0 $0 $0 $0 $675 $800 $0 $0
5
Legal/Accounti $2,40
$1,200 $0 $0 $450 $0 $500 $0 $0 $0 $0 $0 $250
ng 0
$1,50
Office Supplies $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125
0
Interest
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Expense
$5,5 $6,7 $8,52 $8,6 $9,29 $12, $13, $13,8 $13,8 $13, $13,9 $125,
Total Expenses $6,525
75 75 5 50 5 100 131 27 25 575 42 746
Income Before ($3,52 $1,8 $2,8 ($4,5 ($18 $1,7 $2,0 ($29 ($2,2 $2,6 $1,42 $2,64
$795
Taxes 5) 75 25 31) 4) 50 64 8) 25) 70 7 3
Income Tax ($680 ($334
($529) $281 $424 ($28) $119 $263 $310 ($45) $401 $214 $396
Expense ) )
($2,99 $1,5 $2,4 ($3,8 ($15 $1,4 $1,7 ($25 ($1,8 $2,2 $1,21 $2,24
NET INCOME $676
6) 94 01 51) 6) 88 54 3) 91) 70 3 6
*In the service industry, Cost of Goods Sold is the monetized value of the time spent on the client.

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e. 3-Years Projected Profit and Loss (OPTIONAL)

A three-year profit and loss projection is not essential to a business plan. However, you may
want to create one if you expect your business’s financials to change substantially after the first
year, or if investors or lenders require it. You Can use the attached excel file as a template to assist
you up.

f. Projected Cash Flow

The cash flow statement tracks how much cash your business has on hand at any given
time. Once your business is up and running, you’ll want to keep close tabs on your cash flow
statement. For now, however, you’re creating a cash flow projection. Think of the cash flow
projection as a forecast for your business checking account. It details when you need to spend
money on things such as inventory, rent and payroll, and when you expect to receive payments
from customers and clients. For example, you may make a sale, have to buy inventory to fulfill the
sale, and not collect payment from the customer for 30, 60 or 90 days. The cash flow projection
takes these factors into account, helping you budget for upcoming expenses so your business
doesn’t run out of money. You Can use the attached excel file as a template to assist you up.

g. 3-Years Cash Flow Statement (OPTIONAL)

Depending on your needs and the purpose of your business plan, you may also want to
include a 3-year cash flow statement. You Can use the attached excel file as a template to assist you
up.

h. Projected Balance Sheet

A balance sheet subtracts the company’s liabilities from its assets to arrive at the owner’s
equity. You already created an opening day balance sheet in Section 1. Now, download the Balance
Sheet (Projected), and create a projected balance sheet showing the estimated financial condition of
your business at the end of its first year. The major difference between the two is that the projected
balance sheet includes any owner’s equity resulting from the business’s first year in operation.
Lenders and investors may want to see this projection. You Can use the attached excel file as a
template to assist you up.

i. Break-even Analysis
The break-even analysis projects the sales volume you need in order to cover your costs. In
other words, when will the business break even? using your profit and loss projections, enter your
expected fixed and variable costs. Adjust the categories to reflect your own business. You can even
create a couple of different break-even analyses for different scenarios. For example, your payroll
costs will vary depending on whether you hire full-time employees or use independent contractors.
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Creating different break-even analyses can help you determine the best option. You Can use the
attached excel file as a template to assist you up

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11. Conclusion and Recommendations

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12. Annexes

a. SWOT Analysis Worksheet

Strengths Weaknesses Opportunities Threats
Product/ Service
Offering

Brand/ Marketing

Staff/HR

Finance

Operations/
Management

Market

Can any of your strengths help with improving your weaknesses or combating your threats? If
so, please describe how below.

Based on the information above, what are your immediate goals/next steps?

Based on the information above, what are your long-term goals/next steps?

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b. Competitive Analysis Worksheet

For each factor listed in the first column, assess whether you think it’s a strength or a
weakness (S or W) for your business and for your competitors. Then rank how important each factor
is to your target customer on a scale of 1 to 5 (1 = very important; 5 = not very important). Use this
information to explain your competitive advantages and disadvantages.

Competitor Importance to
FACTOR Me Competitor B Competitor C
A Customer

Products

Price

Quality

Selection

Service

Reliability

Stability

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Competitor Importance to
FACTOR Me Competitor B Competitor C
A Customer

Expertise

Company
Reputation

Location

Appearance

Sales Method

Credit Policies

Advertising

Image

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c. Competitor Data Collection Form

Competitor Name

Price

Benefits/Features

Size/profitability

Market strategy

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d. Marketing Strategy Expense Sheet

Target Market 1 Target Market 2 Target Market 3

One-Time
Expenses

Monthly or Annual
Expenses

Labor Costs

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e. Pricing Strategy Worksheet

Business Name

Which of the following pricing strategies will you employ? Circle one.

Cost Plus Value Based Other:

The costs of making/obtaining your Based on your competitive

product or providing your service, advantage and brand
plus enough to make a profit (perceived value)

Provide an explanation of your pricing model selection.

Include strategy info on your major product lines/service offerings. List industry/market practices and any
considerations to be discussed with your mentor.

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f. Distribution Channels Assessment Worksheet

Distribution Channel 1 Distribution Channel 2 Distribution Channel 3

Ease of Entry

Geographic
Proximity

Costs

Competitors’
Positions

Management
Experience

Staffing
Capabilities

Marketing
Needs

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g. Startup Cost Sheet

START-UP COSTS

Your Office-Based Agency January 1, 20xx

COST ITEMS MONTHS COST/ MONTH ONE-TIME COST TOTAL COST

Advertising/Marketing

Employee Salaries

Employee Payroll Taxes and Benefits

Rent/Lease Payments/Utilities

Postage/Shipping

Communication/Telephone

Computer Equipment

Computer Software

Insurance

Interest Expense

Bank Service Charges

Supplies

Travel & Entertainment

Equipment

Furniture & Fixtures

Leasehold Improvements

Security Deposit(s)

Business Licenses/Permits/Fees

Professional Services - Legal, Accounting

Consultant(s)

Inventory

Cash-On-Hand (Working Capital)

Miscellaneous

ESTIMATED START-UP BUDGET

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h. Profit Loss Model Sheet

PROFIT-LOSS MODEL
Your Office-Based Agency January 1, 20xx
REVENUE JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
Estimated Product
Sales
Less Sales Returns &
Discounts
Service Revenue
Other Revenue
Net Sales
Cost of Goods Sold
Gross Profit
EXPENSES JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
Salaries & Wages
Marketing/Advertising
Sales Commissions
Rent
Utilities
Website Expenses
Internet/Phone
Insurance
Travel
Legal/Accounting
Office Supplies
Interest Expense
Other 1
Total Expenses
Income Before Taxes
Income Tax Expense
NET INCOME
* In the service industry, Cost of Goods Sold is the monetized value of the time spent on the client.

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i. Other Documents
Don’t slow your readers down by cluttering your business plan with supporting documents,
such as contracts or licenses. Instead, put these documents in the Appendices, and refer to them in
the body of the plan so readers can find them if needed.

Below are some elements many business owners include in their Appendices.

1. Agreements (Leases, contracts, purchase orders, letters of intent, etc.)

2. Intellectual property (trademarks, licenses, patents, etc.)

3. Resumes of owners/key employees

4. Advertising/marketing materials

5. Public relations/publicity

6. Blueprints/plans

7. List of equipment

8. Market research studies

9. List of assets that can be used as collateral

You can also include any other materials that will give readers a fuller picture of your
business or support the projections and assumptions you make in your plan. For instance, you
might want to include photos of your proposed location, illustrations or photos of a product you are
patenting, or charts showing the projected growth of your market.

After reviewing the Appendices, the reader should feel satisfied that the assumptions
throughout the plan are backed up by documentation and evidence.

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