Industry, Company, Products or Services
Industry
What is the current status and prospects for your industry?
What is the market size?
What are the growth trends?
What is the role of technology in your business?

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The Company and the Concept
What is the general concept of business?
Who will be the Principle Customers?


Products & Services
Describe each Product or Service to be sold.
What is the primary End Use Application?
What Unique Features will you offer?
What are the opportunities for Expansion or New Products?

 Entry & Growth Strategy
What are the "Key Success Variables" in the Marketing Plan?
How will you penetrate the market?
How fast will you grow and to what size in five years?

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Market Research and Analysis

Customers
Who will your customers be and where will they come from?
Can those customers be reached?
What are the needs and wants of those customers?
What do you estimate to be the demand for your service?
Do they have the ability to buy what you are selling?
Are there any current orders or contracts for your service?


Market Size & Trends
What is the size of your total market and share for the next 5 years?
What is the potential annual growth of your business for 5 years?
What factors will affect that growth?

  Competition & Competitive Edges
Who are the major competitors in the area?
What are the strengths and weaknesses of these competitors?
Are there any substitute or alternative products?
Is your product better than the competition and why?
Who are the service, quality and cost leaders in the area?
Can you capture the competitor share of the market and how?

Ongoing Business Evaluation
How will you assess your future target market?
Have you developed a budget for Training & Development?

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Marketing Plan

Overall Marketing Strategy
What are your specific Marketing Philosophies and Strategies?
Are your customers local, regional, national or international?

Pricing
What is your pricing strategy?
What are the prices to be charged?
How do they compare to the competitor pricing?
If the price is below competition, how will you maintain profitability?

Sales Tactics
Describe the methods that will be used to generate sales:
Magazines
Direct Mail
Newspapers
Internet
Brochures, Flyers
Television, Radio
Networking - Word of mouth, Referrals, Trade Associations
Telemarketing
Sales people
A budget for sales promotion will be needed
Specific targets and response rates need to be identified

Distribution
How will you get your product to the market?
All costs need to be identified  (Shipping, Warehousing, Trucks)

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Design, Development and Manufacturing Plan

Regulatory Issues
Is there a strong lead-time to bring your product to market?
Are there any special licenses, copyrights or patents that will
need to be secured?

Geographical Location
Planned location of business.
Proximity to customer base/suppliers.
Affordable rent (Hidden Costs?)
Parking availability.
Traffic patterns.
Utility costs.
Zoning regulations.

Management Team
Organization
Describe key management roles and who will fill each position
Discuss relevant experience, skills, track records and budget
responsibility.
Describe exact responsibilities.
What type of support personnel will be required?
How will new employees be found?

Management Compensation
How are salaries to be paid?
Stock Ownership.
What is the initial contribution of each principal?
What is the percentage of profit to be distributed?

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Critical Risks, Problems and Assumptions

Risks
Running out of cash.
Price cutting by competitors.
Industry trends.
Sales projections not achieved.
Contingencies.
Strategies to minimize risks.
Higher than anticipated costs.

Financial Plan
Income Statement for 3 - 5 years.
Income Statement -  Period of Time
Must show between 3 and 5 years of information
Monthly, Quarterly  and Annually
All Sources of Revenue
All Fixed & Variable Costs

Balance Sheet for 3 - 5 years.
Assets
Cash
Accounts Receivable
Property
Machinery
Equipment

Liabilities
Accounts Payable
Short Term Debt
Long Term Debt
Owners Equity
Founders Capital
Addt'l Paid in Capital
Retained Earnings

Cash Flow for 3 - 5 years.
Cash Flow From Operating Activity
Net Income
Accounts Payable
Accounts Receivable

Cash Flow From Investing Activity
Purchase of Plant Assets
Purchases of Securities
Sale of Securities

Cash Flow From Financing Activity
Payment on Loans

Break - Even Analysis
How long will it be before you start turning a profit?
Most firms have a negative cash flow during the first year.
Do you have enough reserves to hold you over?
Monthly Vs. cumulative Break-Even.

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Executive Summary
 Explanation of the business idea and fundamentals

Opportunity and Strategy
 What is the opportunity?
 What is the strategy for entering the market?
 What is your plan to grow and expand the business?

Target Market & Projections
 Identify & explain the Industry and the market?
 Who are your primary customers?
 What is your plan to reach these customers?

Amount of Initial Investment
 What is the initial investment?
 How will this be obtained?
 How many parties & what is the percentage of their participation?

Competitive advantages
 Product, service and strategy advantages.
 Competitor strengths and weaknesses.

Economics, Profitability and Harvest Potential
 Gross and operating margins
 Profitability
 Break-Even
 Cashflow
 Keep or sell business in future




Management Team
 Knowledge, experience and skills of lead entrepreneur.
 General management experience.
 Bios of team and Board of Directors


Financing Options
Banks
Look at Company history - Difficult for Start-ups.
Owner experience in Business.
Client is required to invest some of their own capital.

Investors
Private Groups
Public Offerings
Investors may or may not participate in day to day activity

Venture Capital    
Looks for High Returns in short period of time.
Owner must usually relinquish some control of company.
Out of 100 Proposals, 10 are viewed, 1 is approved.

Other
Family/ Friends
Personal Savings
Government guaranteed loans 
Credit cards

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