sample business plan presentation

Business Plan Writing Business Plan Writing WorkshopWorkshop

This presentation was created and compiled by staff at the Farmingdale State Small Business This presentation was created and compiled by staff at the Farmingdale State Small Business Development Center.Development Center.

Presented By:Presented By:Small Business Development CenterSmall Business Development Center

IntroductionIntroductionFarmingdale Small Business Farmingdale Small Business Development CenterDevelopment CenterSmall Business AdministrationSmall Business Administration

AgendaAgenda9am – 4pm9am – 4pm

Welcome and IntroductionsWelcome and IntroductionsIce Breaker Ice Breaker Business Plan OutlineBusiness Plan OutlineWriting WorkshopWriting WorkshopLunch BreakLunch BreakWriting Workshop Writing Workshop Questions and AppointmentsQuestions and Appointments

Business PlanBusiness PlanWhat?What?– RoadmapRoadmap– Self-checking toolSelf-checking tool– Funding toolFunding tool– Operating guideOperating guideWhy?Why?– 1,000,001 questions1,000,001 questions– Infinite number of Infinite number of

possibilitiespossibilities– Distractions galoreDistractions galoreHow Long?How Long?– 6-9 pages for the 6-9 pages for the

narrative, plus narrative, plus financials/ appendicesfinancials/ appendices

General RulesGeneral RulesMake it an interesting read!Make it an interesting read!– Bullet pointsBullet points– Balance creativity while still getting Balance creativity while still getting your point acrossyour point across

– Use short (1-3 sentence) paragraphsUse short (1-3 sentence) paragraphs– Be careful with using industry jargonBe careful with using industry jargonWrite with objectivityWrite with objectivity– Consider using the third-personConsider using the third-personFocus more on initial future (1-2 Focus more on initial future (1-2 years), less on later yearsyears), less on later years

Outline of a Business Outline of a Business PlanPlan

Cover SheetCover SheetExecutive SummaryExecutive SummaryTable of ContentsTable of Contents

1)1) Statement of PurposeStatement of Purpose2)2) Company HistoryCompany History3)3) Business DescriptionBusiness Description4)4) Products and ServicesProducts and Services

Outline of a Business Outline of a Business PlanPlan

5)5) Market AnalysisMarket Analysisa.a. CustomersCustomersb.b. CompetitionCompetitionc.c. Marketing StrategyMarketing Strategy

6)6) ManagementManagement7)7) OperationsOperations8)8) Financial PlanFinancial Plan9)9) Appendices Appendices

Cover SheetCover SheetIdentity informationIdentity information– The words “Business Plan”The words “Business Plan”– Your name and business nameYour name and business name– Company logoCompany logo– AddressAddress– Telephone numberTelephone number– Fax NumberFax Number– Email AddressEmail Address– Web Address (URL)Web Address (URL)Submission dateSubmission dateLooks vs. contentLooks vs. content

Executive SummaryExecutive SummaryMost important part of the planMost important part of the plan30-second test30-second testConcise explanationConcise explanation– Venture objectivesVenture objectives– Market prospectsMarket prospects– Financial forecastsFinancial forecasts– Sources and usesSources and usesWRITTEN LASTWRITTEN LAST

Table of ContentsTable of ContentsInclude page numbersInclude page numbersList of headingsList of headings– MajorMajor– SubsectionsSubsectionsSame font!Same font!

Statement of PurposeStatement of PurposeThe business plan’s objectives: financing The business plan’s objectives: financing or operating guide or operating guide FinancingFinancing– How much money is needed?How much money is needed?– What will the money be used for?What will the money be used for?– How will the funds benefit the business?How will the funds benefit the business?– Why does this loan or investment make business Why does this loan or investment make business sense?sense?

– How will the funds be repaid?How will the funds be repaid?Operating guideOperating guide– Who will use it?Who will use it?– Will it layout strategy plans?Will it layout strategy plans?– How will it be updated?How will it be updated?Becoming self-sufficientBecoming self-sufficient

Sample: Statement of Sample: Statement of PurposePurpose

This business plan is written to secure This business plan is written to secure financing in the amount of $24,000, which financing in the amount of $24,000, which will cover the following costs:will cover the following costs:

•$10,000 in equipment$10,000 in equipment•$14,000 in operating capital$14,000 in operating capitalThe loan will supplement the owner’s The loan will supplement the owner’s

equity investment of $20,000, and will be equity investment of $20,000, and will be repaid beginning the month after disbursement repaid beginning the month after disbursement according to lender terms. Funds will play a according to lender terms. Funds will play a crucial role in sustaining the business as crucial role in sustaining the business as the client base grows, and will allow the the client base grows, and will allow the business to become self-sufficient by the business to become self-sufficient by the beginning of year two.beginning of year two.

Company HistoryCompany HistoryMission Statement Mission Statement Basic product descriptionBasic product descriptionNames of principals and brief background on eachNames of principals and brief background on eachLegalities: business typeLegalities: business typeCompany locationCompany locationNumber of employeesNumber of employeesCustomer highlightsCustomer highlightsYour niche and unique qualitiesYour niche and unique qualitiesStrategic alliancesStrategic alliancesAwards and meritsAwards and meritsCompany milestones (business formation, opening date, Company milestones (business formation, opening date, hiring employees, revenue levels/ growth) hiring employees, revenue levels/ growth) 1-3 year plan – future milestones to reach (sales 1-3 year plan – future milestones to reach (sales goals, hiring employees)goals, hiring employees)

Sample: Company History (1 Sample: Company History (1 of 2)of 2)

ABC Child Care strives to become the ABC Child Care strives to become the most-well known and reputable service most-well known and reputable service provider in the XYZ area, with a targeted provider in the XYZ area, with a targeted focus on safety, enrichment, and comfort. focus on safety, enrichment, and comfort. The Company was founded based on a growing The Company was founded based on a growing trend: quality child care is a key issue for trend: quality child care is a key issue for working parents, and has now become a top working parents, and has now become a top priority for New York State. priority for New York State.

The business is owned and operated by The business is owned and operated by its co-founders, John and Jane Doe. Each has its co-founders, John and Jane Doe. Each has had extensive experience working with had extensive experience working with children prior to opening ABC, in both a children prior to opening ABC, in both a teaching and managing capacity. Since teaching and managing capacity. Since opening in March of XXXX, ABC Building opening in March of XXXX, ABC Building Blocks Child Care has reached the following Blocks Child Care has reached the following milestones: milestones:

Sample: Company History (2 Sample: Company History (2 of 2)of 2)

• Incorporated as a New York State S-Corporation and Incorporated as a New York State S-Corporation and became licensed in March, XXXXbecame licensed in March, XXXX

• Renovated owned residence of principal to operate, Renovated owned residence of principal to operate, at 123 Main Street, Anytown, NY in March XXXXat 123 Main Street, Anytown, NY in March XXXX

• Enlisted first 6 full-time clients in April XXXXEnlisted first 6 full-time clients in April XXXX• Reached monthly break even with 8 full-time clients Reached monthly break even with 8 full-time clients in June XXXXin June XXXX

• Hired full-time staff teacher June XXXXHired full-time staff teacher June XXXX• $50,000 in revenue by September XXXX$50,000 in revenue by September XXXX

ABC plans to reach its capacity of 12 children by the end ABC plans to reach its capacity of 12 children by the end of December XXXX, where projected monthly income will be of December XXXX, where projected monthly income will be $10,000. By June of the following year, the ABC will look $10,000. By June of the following year, the ABC will look to expand to a center-based day care, with a capacity of to expand to a center-based day care, with a capacity of up to 60 children. Existing clients and waiting list will up to 60 children. Existing clients and waiting list will be transferred and housed in new facility. Please see be transferred and housed in new facility. Please see appendix for projections and growth chart. appendix for projections and growth chart.

Business DescriptionBusiness DescriptionMission statementMission statementLegalities: business typeLegalities: business typeBasic product or service descriptionBasic product or service descriptionNew, takeover, expansion, franchiseNew, takeover, expansion, franchiseGeneral strategy planGeneral strategy plan– List of planned milestones (business List of planned milestones (business formation, opening date, hiring employees, formation, opening date, hiring employees, reaching certain revenue goals)reaching certain revenue goals)

Planned strategic alliancesPlanned strategic alliancesWork already doneWork already doneExperience in the businessExperience in the business

Sample: Business Description (1 Sample: Business Description (1 of 3)of 3)

JavaNet will provide customers with a unique and JavaNet will provide customers with a unique and innovative environment for enjoying great coffee, innovative environment for enjoying great coffee, specialty beverages, and bakery items. JavaNet, soon to be specialty beverages, and bakery items. JavaNet, soon to be located in downtown Eugene on 10th and Oak, will offer the located in downtown Eugene on 10th and Oak, will offer the community easy and affordable access to the Internet. community easy and affordable access to the Internet. JavaNet will provide full access to email, WWW, FTP, JavaNet will provide full access to email, WWW, FTP, Usenet and other Internet applications such as Telnet and Usenet and other Internet applications such as Telnet and Gopher.Gopher.JavaNet will appeal to individuals of all ages and JavaNet will appeal to individuals of all ages and backgrounds. The instructional Internet classes, and the backgrounds. The instructional Internet classes, and the helpful staff that JavaNet provides, will appeal to the helpful staff that JavaNet provides, will appeal to the audience that does not associate themselves with the audience that does not associate themselves with the computer age. This educational aspect will attract younger computer age. This educational aspect will attract younger and elderly members of the community who are rapidly and elderly members of the community who are rapidly gaining interest in the unique resources that online gaining interest in the unique resources that online communications have to offer. The downtown location will communications have to offer. The downtown location will provide business people with convenient access to their provide business people with convenient access to their morning coffee and online needs.morning coffee and online needs.


JavaNet is a privately held Oregon Limited JavaNet is a privately held Oregon Limited Liability Corporation. Cale Bruckner, the founder Liability Corporation. Cale Bruckner, the founder of JavaNet, is the majority owner. Luke Walsh, of JavaNet, is the majority owner. Luke Walsh, Doug Wilson, and John Underwood, all hold minority Doug Wilson, and John Underwood, all hold minority stock positions as private investors.stock positions as private investors.JavaNet's start-up costs will cover coffee making JavaNet's start-up costs will cover coffee making equipment, site renovation and modification, equipment, site renovation and modification, capital to cover losses in the first year, and the capital to cover losses in the first year, and the communications equipment necessary to get its communications equipment necessary to get its customers online.customers online.The communications equipment necessary to provide The communications equipment necessary to provide JavaNet's customers with a high-speed connection JavaNet's customers with a high-speed connection to the Internet and the services it has to offer to the Internet and the services it has to offer make up a large portion of the start-up costs. make up a large portion of the start-up costs. These costs will include the computer terminals These costs will include the computer terminals and all costs associated with their set-up. Costs and all costs associated with their set-up. Costs will also be designated for the purchase of two will also be designated for the purchase of two laser printers and a scanner.laser printers and a scanner.

In addition, costs will be allocated for the In addition, costs will be allocated for the purchase of coffee making equipment. One espresso purchase of coffee making equipment. One espresso machine, an automatic coffee grinder, and minor machine, an automatic coffee grinder, and minor additional equipment will be purchased from additional equipment will be purchased from Allann Brothers.Allann Brothers.The site at 10th and Oak will require funds for The site at 10th and Oak will require funds for renovation and modification. A single estimated renovation and modification. A single estimated figure will be allocated for this purpose. The figure will be allocated for this purpose. The renovation/modification cost estimate will renovation/modification cost estimate will include the costs associated with preparing the include the costs associated with preparing the site for opening business.site for opening business.Please refer to the attached appendix for Please refer to the attached appendix for strategic goals and measures during the first 24 strategic goals and measures during the first 24 months.months.


Products and ServicesProducts and ServicesDetailed description of products Detailed description of products or services or services Indicate stage of development: Indicate stage of development: in-process, prototypes, samplesin-process, prototypes, samplesPatents or trademarks, legal Patents or trademarks, legal contracts, licensing agreements, contracts, licensing agreements, regulations, certificationsregulations, certifications““The Brochure Section”The Brochure Section”

Sample: Products and Services (1 Sample: Products and Services (1 of 3)of 3)

At ABC Building Blocks Child Care, we continually At ABC Building Blocks Child Care, we continually work to provide the most well-balanced day care work to provide the most well-balanced day care schedule possible for the children. Every day is schedule possible for the children. Every day is a mix of lesson time and free play with a weekly a mix of lesson time and free play with a weekly theme, generally a number or letter. Most theme, generally a number or letter. Most children arrive between 7:30 and 9:30am. The children arrive between 7:30 and 9:30am. The early arrivals eat breakfast at the facility and early arrivals eat breakfast at the facility and then engage in free play as the other children then engage in free play as the other children arrive and join them. At 9:30, all of the arrive and join them. At 9:30, all of the children sit down for a snack. All food served children sit down for a snack. All food served meets the guidelines set forth by the New York meets the guidelines set forth by the New York State Child and Adult Care Food Program. After State Child and Adult Care Food Program. After snack, there is a lesson. Each day, the program snack, there is a lesson. Each day, the program begins with the pledge of allegiance and then begins with the pledge of allegiance and then moves to activities related to the calendar.moves to activities related to the calendar.

Sample: Products and Services (2 Sample: Products and Services (2 of 3)of 3)

The program includes discussion of the months of The program includes discussion of the months of the year, days of the week, seasons, holidays, and the year, days of the week, seasons, holidays, and the weather. During the lesson, two-to-four the weather. During the lesson, two-to-four worksheets (made up in advance) on the topic of worksheets (made up in advance) on the topic of the week are used. the week are used. The sheets include tracing of the letter or number The sheets include tracing of the letter or number the children are learning, coloring pictures of the children are learning, coloring pictures of the related objects, matching games, etc. At least the related objects, matching games, etc. At least once each week, the children use paints, glue, and once each week, the children use paints, glue, and scissors to complete a project or craft pertaining scissors to complete a project or craft pertaining to the scheduled theme.to the scheduled theme.After lessons, the children read a book, or are After lessons, the children read a book, or are taught a new song. This is followed by free play taught a new song. This is followed by free play prior to lunch. It is a goal of the center to prior to lunch. It is a goal of the center to bring the children outdoors, weather permitting, bring the children outdoors, weather permitting, each day. At noon, lunch is served, and is each day. At noon, lunch is served, and is generally a hot meal, consisting of a meat, generally a hot meal, consisting of a meat, vegetable, fruit, and grain (such as pasta, rice, vegetable, fruit, and grain (such as pasta, rice, or bread) as per the New York State guidelines.or bread) as per the New York State guidelines.

After lunch, the morning program is repeated After lunch, the morning program is repeated and expanded. This is followed by afternoon and expanded. This is followed by afternoon snack at 2:30pm. Since parents begin pickups snack at 2:30pm. Since parents begin pickups at 3:30pm, the children are allowed free play at 3:30pm, the children are allowed free play with developmental toys such as puzzles, with developmental toys such as puzzles, blocks, and Legos, all of which are kept blocks, and Legos, all of which are kept within their reach.within their reach.Diapers are changed as needed throughout the Diapers are changed as needed throughout the day and records are kept of the changes. The day and records are kept of the changes. The younger children are put down to nap either younger children are put down to nap either in porta-cribs or on mats during the morning in porta-cribs or on mats during the morning or afternoon hours as dictated by their or afternoon hours as dictated by their individual schedules and the parent’s wishes. individual schedules and the parent’s wishes. Hands-on computer training is planned once Hands-on computer training is planned once the center moves to its new location and the center moves to its new location and space permits a computer center.space permits a computer center.

Sample Products and Services (3 Sample Products and Services (3 of 3)of 3)

Additional Sample: Additional Sample: Products and Services (1 of Products and Services (1 of

3)3)JavaNet will provide full access to email, WWW, JavaNet will provide full access to email, WWW, FTP, Usenet and other Internet applications such FTP, Usenet and other Internet applications such as Telnet and Gopher. Printing, scanning, and as Telnet and Gopher. Printing, scanning, and introductory courses to the Internet will also introductory courses to the Internet will also be available to the customer. JavaNet will also be available to the customer. JavaNet will also provide customers with a unique and innovative provide customers with a unique and innovative environment for enjoying great coffee, specialty environment for enjoying great coffee, specialty beverages, and bakery items.beverages, and bakery items.JavaNet will provide its customers with full JavaNet will provide its customers with full access to the Internet and common computer access to the Internet and common computer software and hardware. Some of the Internet and software and hardware. Some of the Internet and computing services available to JavaNet computing services available to JavaNet customers are listed below:customers are listed below:

• Access to external POP3 email accounts.Access to external POP3 email accounts.• Customers can sign up for a JavaNet email Customers can sign up for a JavaNet email account. This account will be managed by account. This account will be managed by JavaNet servers and accessible from computer JavaNet servers and accessible from computer systems outside the JavaNet network. systems outside the JavaNet network.


3)3)• FTP, Telnet, Gopher, and other popular Internet FTP, Telnet, Gopher, and other popular Internet utilities will be available.utilities will be available.

• Access to Netscape or Internet Explorer browser.Access to Netscape or Internet Explorer browser.• Access to laser and color printing. Access to laser and color printing. • Access to popular software applications like Adobe Access to popular software applications like Adobe Photoshop and Microsoft Word. Photoshop and Microsoft Word.

JavaNet will also provide its customers with access to JavaNet will also provide its customers with access to introductory Internet and email classes. These classes introductory Internet and email classes. These classes will be held in the afternoon and late in the evening. will be held in the afternoon and late in the evening. By providing these classes, JavaNet will build a client By providing these classes, JavaNet will build a client base familiar with its services. The computers, Internet base familiar with its services. The computers, Internet access, and classes wouldn't mean half as much if taken access, and classes wouldn't mean half as much if taken out of the environment JavaNet will provide. Good out of the environment JavaNet will provide. Good coffee, specialty drinks, bakery goods, and a coffee, specialty drinks, bakery goods, and a comfortable environment will provide JavaNet customers comfortable environment will provide JavaNet customers with a home away from home. A place to enjoy the with a home away from home. A place to enjoy the benefits of computing in a comfortable and well-kept benefits of computing in a comfortable and well-kept environment.environment.


3)3)JavaNet will obtain computer support and Internet JavaNet will obtain computer support and Internet access from Bellevue Computers located in Eugene. access from Bellevue Computers located in Eugene. Bellevue will provide the Internet connections, network Bellevue will provide the Internet connections, network consulting, and the hardware required to run the consulting, and the hardware required to run the JavaNetwork. Allann Brothers will provide JavaNet with JavaNetwork. Allann Brothers will provide JavaNet with coffee equipment, bulk coffee, and paper supplies. At coffee equipment, bulk coffee, and paper supplies. At this time, a contract for the bakery items has not been this time, a contract for the bakery items has not been completed. JavaNet is currently negotiating with Humble completed. JavaNet is currently negotiating with Humble Bagel and the French Horn to fulfill the requirement.Bagel and the French Horn to fulfill the requirement.JavaNet will invest in high-speed computers to provide JavaNet will invest in high-speed computers to provide its customers with a fast and efficient connection to its customers with a fast and efficient connection to the Internet. The computers will be reliable and fun to the Internet. The computers will be reliable and fun to work with. JavaNet will continue to upgrade and modify work with. JavaNet will continue to upgrade and modify the systems to stay current with communications the systems to stay current with communications technology. One of the main attractions associated with technology. One of the main attractions associated with Internet cafes, is the state of the art equipment Internet cafes, is the state of the art equipment available for use. Not everyone has a Pentium PC in available for use. Not everyone has a Pentium PC in their home or office.their home or office.

Market AnalysisMarket AnalysisIndustry analysis Industry analysis Customers: individual, businessCustomers: individual, businessCompetitionCompetitionMarketing StrategyMarketing StrategyCite Sources!Cite Sources!

Market Analysis: Industry Market Analysis: Industry AnalysisAnalysis

Market backgroundMarket backgroundIndustry-wide information, Industry-wide information, trendstrendsLocal industry information, Local industry information, trendstrendsMarket capture and expectations Market capture and expectations Social, economic, legal, Social, economic, legal, technological issuestechnological issues

Market Analysis: Market Analysis: CustomersCustomers

Customer definition, consistencyCustomer definition, consistencyIndividual customer demographicsIndividual customer demographics– Location, age, gender, occupationLocation, age, gender, occupation– Ethnic group, lifestyle, education, Ethnic group, lifestyle, education, income income

Business customer demographicsBusiness customer demographics– Sector, location, structureSector, location, structure– Sales level, distribution Sales level, distribution classification, number of employeesclassification, number of employees

Sample: Market AnalysisSample: Market AnalysisThe child care industry is an ever expanding segment of The child care industry is an ever expanding segment of today’s business world necessitated by the increase in today’s business world necessitated by the increase in families who have two working parents. In Anytown and the families who have two working parents. In Anytown and the surrounding areas, these individuals are predominantly surrounding areas, these individuals are predominantly between the ages of 30 and 45 years old with a median age of between the ages of 30 and 45 years old with a median age of 36.6. The majority have completed high school and many have 36.6. The majority have completed high school and many have varying degrees of college education. While the dual incomes varying degrees of college education. While the dual incomes (most families earn between $65,000 and $100,000) provide (most families earn between $65,000 and $100,000) provide some disposable income, approximately 65% have at least two some disposable income, approximately 65% have at least two children under the age of sixteen. These people are wealthy children under the age of sixteen. These people are wealthy enough to be able to afford day care, but unlikely to have enough to be able to afford day care, but unlikely to have live-in help. live-in help. Demographic research conducted uncovered the following:Demographic research conducted uncovered the following:

• the population of children under the age of six years the population of children under the age of six years old is 5,307 within the surrounding three-mile radiusold is 5,307 within the surrounding three-mile radius

• parents of these children seek quality daycare with parents of these children seek quality daycare with extended hours to accommodate long work days and extended hours to accommodate long work days and schedulesschedules

ABC Building Blocks will serve children under six years old, ABC Building Blocks will serve children under six years old, and open at 7:00am and remain open until 7:00pm. Parents can and open at 7:00am and remain open until 7:00pm. Parents can conveniently drop their children off on their way to work conveniently drop their children off on their way to work and pick them up on their way home.and pick them up on their way home.

CompetitionCompetitionRule of Three for Competitive StudyRule of Three for Competitive Study– Why your company is superiorWhy your company is superior– Trends in competitive companiesTrends in competitive companies– Similar and dissimilarSimilar and dissimilar– SWOT (strengths, weaknesses, SWOT (strengths, weaknesses, opportunities, threats)opportunities, threats)

– Lessons learnedLessons learned– AdvertisingAdvertising– Eye on the futureEye on the futureCompetitive grid and explanationCompetitive grid and explanation

Sample: Competition (1 Sample: Competition (1 of 2)of 2)

The main competitors in the retail coffee segment The main competitors in the retail coffee segment are Cafe Paradisio, Full City, Coffee Corner and are Cafe Paradisio, Full City, Coffee Corner and Allann Bros. These businesses are located in or Allann Bros. These businesses are located in or near the downtown area, and target a similar near the downtown area, and target a similar segment to JavaNet's (i.e. educated, upwardly-segment to JavaNet's (i.e. educated, upwardly-mobile students and business people).mobile students and business people).Competition from online service providers comes Competition from online service providers comes from locally-owned businesses as well as national from locally-owned businesses as well as national firms. There are approximately eight, local, firms. There are approximately eight, local, online service providers in Eugene. This number online service providers in Eugene. This number is expected to grow with the increasing demand is expected to grow with the increasing demand for Internet access. Larger, online service for Internet access. Larger, online service providers, such as AOL and CompuServe are also a providers, such as AOL and CompuServe are also a competitive threat to JavaNet. Due to the nature competitive threat to JavaNet. Due to the nature of the Internet, there are no geographical of the Internet, there are no geographical boundaries restricting competition.boundaries restricting competition.

Due to intense competition, cafe owners must Due to intense competition, cafe owners must look for ways to differentiate their place of look for ways to differentiate their place of business from others in order to achieve and business from others in order to achieve and maintain a competitive advantage. The founder of maintain a competitive advantage. The founder of JavaNet realizes the need for differentiation JavaNet realizes the need for differentiation and strongly believes that combining a cafe with and strongly believes that combining a cafe with complete Internet service is the key to success. complete Internet service is the key to success. The fact that no cyber-cafes are established in The fact that no cyber-cafes are established in Eugene, presents JavaNet with a chance to enter Eugene, presents JavaNet with a chance to enter the window of opportunity and enter into a the window of opportunity and enter into a profitable niche in the market.profitable niche in the market.JavaNet will be the first Internet cafe in JavaNet will be the first Internet cafe in Eugene. JavaNet will differentiate itself from Eugene. JavaNet will differentiate itself from the strictly-coffee cafes in Eugene by providing the strictly-coffee cafes in Eugene by providing its customers with Internet and computing its customers with Internet and computing services.services.

Sample: Competition (2 Sample: Competition (2 of 2)of 2)

Competitive GridCompetitive GridCompetitorCompetitor Bobo Salon and Bobo Salon and

StylingStyling JohnnyJohnny’’s Hairs Hair BEST CUTSBEST CUTS

OfferingsOfferings MenMen’’s/women's s/women's cut/styles/color cut/styles/color permsperms

MenMen’’s cuts s cuts onlyonly

MenMen’’s/ womens/ women’’s s cut/ style/ cut/ style/ color/ perms color/ perms

Service Service PricesPrices

Starts at $38Starts at $38 Starts at $50Starts at $50 Starts at $30Starts at $30

Retail Retail PricesPrices

100% markup 100% markup 100% markup100% markup 75% markup75% markup

LocationLocation High traffic, highly High traffic, highly visiblevisible

Moderate Moderate traffic, traffic, highly visiblehighly visible

High traffic,High traffic,not visiblenot visible

ExpertiseExpertise 20+years, up-to-date 20+years, up-to-date trendstrends

15+ years, 15+ years, young young hairstylistshairstylists

13+ years, up-13+ years, up-to-date trendsto-date trends

ServiceService Set hours, little Set hours, little schedule flexibilityschedule flexibility

Manager never Manager never therethere

Custom hours to Custom hours to suit clients suit clients needsneeds

TurnoverTurnover LowLow HighHigh Sole stylistSole stylist

CapacityCapacity 11 active chairs11 active chairs 8 active 8 active chairschairs

1 active chair1 active chair

Client BaseClient Base Over 4000Over 4000 ?? Over 300Over 300

Marketing StrategyMarketing StrategyObtaining a profitable share of Obtaining a profitable share of the entire marketplacethe entire marketplace– Product: sellable aspects, brand Product: sellable aspects, brand imageimage

– Pricing: cost-plus or economic Pricing: cost-plus or economic valuevalue

– Placement Placement – PromotionPromotion

Sample: Marketing Sample: Marketing StrategyStrategy

JavaNet will position itself as an upscale JavaNet will position itself as an upscale coffee house and Internet service provider. It coffee house and Internet service provider. It will serve high-quality coffee and espresso will serve high-quality coffee and espresso specialty drinks at a competitive price. Due to specialty drinks at a competitive price. Due to the number of cafes in Eugene, it is important the number of cafes in Eugene, it is important that JavaNet sets fair prices for its coffee. that JavaNet sets fair prices for its coffee. JavaNet will use advertising as its main source JavaNet will use advertising as its main source of promotion. Ads placed in The Register Guard, of promotion. Ads placed in The Register Guard, Eugene Weekly, and the Emerald will help build Eugene Weekly, and the Emerald will help build customer awareness. Accompanying the ad will be customer awareness. Accompanying the ad will be a coupon for a free hour of Internet travel. a coupon for a free hour of Internet travel. Furthermore, JavaNet will give away three free Furthermore, JavaNet will give away three free hours of Internet use to beginners who sign up hours of Internet use to beginners who sign up for an introduction to the Internet workshop for an introduction to the Internet workshop provided by JavaNet.provided by JavaNet.

ManagementManagementJob descriptions of the Job descriptions of the decision makersdecision makers““I do everything!”I do everything!”Compensation, benefitsCompensation, benefitsContribution and background as Contribution and background as leverage to performleverage to performAdvisory boardAdvisory board

Sample: Management (1 of Sample: Management (1 of 2)2)

Mr. Jarvis was born in Anytown, USA, and has lived Mr. Jarvis was born in Anytown, USA, and has lived there all his life. After graduating from local there all his life. After graduating from local schools and serving in the US Navy for three years, schools and serving in the US Navy for three years, he became a self-employed carpenter, taking night he became a self-employed carpenter, taking night courses in small business management and sales at the courses in small business management and sales at the University of California, with the aim of owning and University of California, with the aim of owning and managing a retail store. He currently serves on the managing a retail store. He currently serves on the local zoning board. He and his wife (a medical local zoning board. He and his wife (a medical secretary) live in Anytown with their two children.secretary) live in Anytown with their two children.Mr. Bo was born in Utah, attended schools in Texas, Mr. Bo was born in Utah, attended schools in Texas, Nebraska, and New York, and served four years in the Nebraska, and New York, and served four years in the Marines (rank upon separation: E-3). He test-drove Marines (rank upon separation: E-3). He test-drove motorcycles for a year, then served as parts manager motorcycles for a year, then served as parts manager for Wheely Cycles, Inc. before joining the Fatback for Wheely Cycles, Inc. before joining the Fatback Fish Division of Tasty Foods as a packer in March Fish Division of Tasty Foods as a packer in March 1989 in their East Machias, Maine, plant. In June 1989 in their East Machias, Maine, plant. In June 1996, he resigned as line foreman of the Frozen Food 1996, he resigned as line foreman of the Frozen Food Filleting Department to join Mr. Jarvis in Filleting Department to join Mr. Jarvis in Finestkind. He is unmarried and lives in Anytown.Finestkind. He is unmarried and lives in Anytown.

Sample: Management (2 of Sample: Management (2 of 2)2)

Both men are healthy and energetic. They believe their Both men are healthy and energetic. They believe their energies complement each other and help make Finestkind a energies complement each other and help make Finestkind a success. In particular, Mr. Bo knows all of the fishermen success. In particular, Mr. Bo knows all of the fishermen while Mr. Jarvis is a well-known member of the community. while Mr. Jarvis is a well-known member of the community. Because Mr. Bo has had experience in cost control and line Because Mr. Bo has had experience in cost control and line management, he will be responsible for the store and inventory management, he will be responsible for the store and inventory control. Mr. Jarvis will be primarily responsible for control. Mr. Jarvis will be primarily responsible for developing the wholesale business. They will set policies developing the wholesale business. They will set policies together. Personnel decisions will be made jointly.together. Personnel decisions will be made jointly.Salaries will be $1,500/ month for the first year to enable Salaries will be $1,500/ month for the first year to enable the business to pay off start-up costs. Mr. Jarvis’ wife earns the business to pay off start-up costs. Mr. Jarvis’ wife earns enough to support their family; Mr. Bo’s personal expenditures enough to support their family; Mr. Bo’s personal expenditures are low because he shares a house with five other men. In the are low because he shares a house with five other men. In the second year they will earn $2,000/ month; in the third year second year they will earn $2,000/ month; in the third year $2,500/ month with any profits returned to the business.$2,500/ month with any profits returned to the business.In order to augment their skills, they have enlisted the help In order to augment their skills, they have enlisted the help of Harris and Wakeman (CPAs), James, Garvey, and Kippers of Harris and Wakeman (CPAs), James, Garvey, and Kippers (attorneys), and Jake Stemmer, a retired banker who will be on (attorneys), and Jake Stemmer, a retired banker who will be on their advisor board. Other advisory board members are Steven their advisor board. Other advisory board members are Steven Tessus, business consultant; the University of California’s Tessus, business consultant; the University of California’s Venture Incubator Center’s John Lawrence; and Peter Shortt of Venture Incubator Center’s John Lawrence; and Peter Shortt of FFFR (First For Fish Retailers). This board will provide FFFR (First For Fish Retailers). This board will provide ongoing management.ongoing management.

Production/ OperationsProduction/ OperationsLogisticsLogistics– plant location, facilities needed, space plant location, facilities needed, space requirements, capital equipment needed, requirements, capital equipment needed, labor requirements labor requirements

– If applicable: purchasing policy, quality If applicable: purchasing policy, quality control program, inventory control system, control program, inventory control system, production cost breakdown, subcontractsproduction cost breakdown, subcontracts

Environmental and other issuesEnvironmental and other issuesFurther research and developmentFurther research and developmentWhat is done vs. what is TO BE doneWhat is done vs. what is TO BE done

Sample: Production/ Operations Sample: Production/ Operations (1 of 3)(1 of 3)

The Company’s facilities will include a 120-foot live-aboard The Company’s facilities will include a 120-foot live-aboard vessel designed specifically for diving. This vessel will vessel designed specifically for diving. This vessel will include private rooms, restaurant-like meals, a photo lab, include private rooms, restaurant-like meals, a photo lab, and a dive classroom for divers who want to brush up on dive and a dive classroom for divers who want to brush up on dive techniques, and a medical room for treatment of any injuries techniques, and a medical room for treatment of any injuries that might be incurred. Also aboard is a jacuzzi and that might be incurred. Also aboard is a jacuzzi and unlimited dry air supply for air tanks. unlimited dry air supply for air tanks. The land-based office will sit along the beach and have its The land-based office will sit along the beach and have its own covered port for maintaining the vessel and keeping it own covered port for maintaining the vessel and keeping it in good condition when not underway. The office will be in good condition when not underway. The office will be easily accessible on a paved road. The Company will carry easily accessible on a paved road. The Company will carry thirty air tanks, thirty pairs of masks, fins, and snorkels, thirty air tanks, thirty pairs of masks, fins, and snorkels, thirty weight belts, thirty BCU’s, thirty regulators, and thirty weight belts, thirty BCU’s, thirty regulators, and fifty pounds of weights. A number of different accessories fifty pounds of weights. A number of different accessories will be for rent by the dive. Such accessories include will be for rent by the dive. Such accessories include underwater cameras, dive knives, underwater lights, and underwater cameras, dive knives, underwater lights, and gloves, dive computers, and torpedos.gloves, dive computers, and torpedos.In order to maintain the quality of equipment, all of it, In order to maintain the quality of equipment, all of it, from the snorkel to the boat engine is inspected monthly by from the snorkel to the boat engine is inspected monthly by owners. Defective items will be returned to suppliers for a owners. Defective items will be returned to suppliers for a new product replacement. The air tanks will be checked new product replacement. The air tanks will be checked yearly as required by law by a licensed technician. yearly as required by law by a licensed technician.


All equipment will be hosed down with fresh All equipment will be hosed down with fresh water extensively after every dive to maintain water extensively after every dive to maintain its quality. Salt water will not remain on any its quality. Salt water will not remain on any equipment to be stored. The restaurant will equipment to be stored. The restaurant will maintain above standard health code regulations maintain above standard health code regulations with an extensive cleaning of the all-aluminum with an extensive cleaning of the all-aluminum kitchen.kitchen.To keep track of equipment, a weekly count will To keep track of equipment, a weekly count will be taken of all equipment aboard the vessel. be taken of all equipment aboard the vessel. There will be a count before passengers board There will be a count before passengers board and before passengers leave.and before passengers leave.Operations will be handled by the owners, by Operations will be handled by the owners, by which a handout will be given to all hands which a handout will be given to all hands daily as to what their assigned jobs will be. daily as to what their assigned jobs will be. The assignments will be fairly routine from day The assignments will be fairly routine from day to day. Before each dive, all divers will be to day. Before each dive, all divers will be surveyed, and given a thorough and illustrated surveyed, and given a thorough and illustrated briefing to clear up any confusion. briefing to clear up any confusion.


Four part-time hands will be hired at $15/ hour, Four part-time hands will be hired at $15/ hour, for 20 hours per week each. Owners will cover for 20 hours per week each. Owners will cover the employee payroll requirements: medicare, the employee payroll requirements: medicare, social security, worker’s compensation, social security, worker’s compensation, unemployment, which will amount to an additional unemployment, which will amount to an additional $4 per each employee hour worked. No medical $4 per each employee hour worked. No medical benefits will be offered.benefits will be offered.Sources of supply include: Jamison Scuba and Sources of supply include: Jamison Scuba and Water Lung (scuba equipment), Nighthawk Water Lung (scuba equipment), Nighthawk Solutions (lighting equipment), Bahamas Boats Solutions (lighting equipment), Bahamas Boats (live-aboard vessel), and Harvey Foods (food).(live-aboard vessel), and Harvey Foods (food).The Company will purchase supplies in bulk to The Company will purchase supplies in bulk to receive a discount on the merchandise. Bills receive a discount on the merchandise. Bills will be paid off within ten days of arrival to will be paid off within ten days of arrival to take advantage of the 2% discount. All orders take advantage of the 2% discount. All orders and payments are approved by owners.and payments are approved by owners.

Maximum sway at top caused by metal dilation: 18 cm (7 inches).

Pressure on foundation: 4.1 to 4.5 kg per square centimeter

15,000 iron pieces (excluding rivets).

2.5 million rivets.

40 tons of paint.

1671 steps to the top.

Maximum sway at top caused by wind: 12 cm (4.75 inches).

Maximum sway at top caused by metal dilation: 18 cm (7 inches).

Weight of elevator systems: 946,000 kg (1042.8 tons).

Total weight: 8.56 million kg (9441 tons).

Weight of foundations: 277,602 kg (306 tons).

Size of base area: 10,281.96 square meters (2.54 acres).

Cost of construction: 7.8 million francs ($1.5 million).

How Much $$$ Do I Need?How Much $$$ Do I Need?Determine start Determine start up costs and up costs and estimate monthly estimate monthly operating costs operating costs to determine your to determine your working capital working capital needsneeds

Financial PlanFinancial PlanTHE PRIMARY EVALUATING TOOLTHE PRIMARY EVALUATING TOOL– Support all informationSupport all information– Make conservative projectionsMake conservative projectionsStart-up Budget: amount needed Start-up Budget: amount needed to opento openOperating Budget: ongoing Operating Budget: ongoing expenses once openexpenses once openSources and Uses SheetSources and Uses Sheet

Financing Your New Financing Your New BusinessBusiness

Start up loans are Start up loans are very difficult to very difficult to obtainobtainChances are you have Chances are you have to rely on the funds to rely on the funds you can personally you can personally raiseraiseGrants?! Sidebar Grants?! Sidebar herehere– Matthew Lesko, NGCMatthew Lesko, NGC

Methods of FinancingMethods of FinancingPersonal fundsPersonal fundsFamily/ friend loans and giftsFamily/ friend loans and giftsAngel investorAngel investorVenture capitalVenture capitalGrantsGrantsPersonal loanPersonal loanBusiness loanBusiness loan

What is an SBA Guaranteed What is an SBA Guaranteed Loan?Loan?

Loan obtained from a financial Loan obtained from a financial institution, guaranteed by the institution, guaranteed by the SBASBALoans of various sizesLoans of various sizes

What are the What are the Requirements?Requirements?

An excellent personal and An excellent personal and business credit record business credit record Adequate collateralAdequate collateralCash investment: generally 20-Cash investment: generally 20-30% of total project30% of total projectExperience in the business you Experience in the business you are startingare startingA solid business planA solid business plan

Financial Plan: Startup Financial Plan: Startup BudgetBudget

Personnel (costs prior to opening)Personnel (costs prior to opening)Occupancy (lease, rent, or mortgage)Occupancy (lease, rent, or mortgage)Legal/ Professional FeesLegal/ Professional FeesEquipmentEquipmentSuppliesSuppliesSalary/ WagesSalary/ WagesUtilitiesUtilitiesPayroll ExpensesPayroll ExpensesInternetInternetLicenses/ PermitsLicenses/ PermitsInsuranceInsuranceAdvertising/ PromotionsAdvertising/ Promotions

Financial Plan: Operating Financial Plan: Operating BudgetBudget

PersonnelPersonnelLease/ Rent/ Lease/ Rent/ MortgageMortgageLoan PaymentsLoan PaymentsLegal FeesLegal FeesAccountingAccountingSuppliesSuppliesSalaries/ WagesSalaries/ WagesDues/ Dues/ Subscriptions/ FeesSubscriptions/ FeesRepairs/ Repairs/ MaintenanceMaintenance

InsuranceInsuranceAdvertising/ Advertising/ PromotionsPromotionsDepreciationDepreciationPayroll ExpensesPayroll ExpensesInternetInternetPayroll TaxesPayroll TaxesTravel/ Travel/ EntertainmentEntertainmentMiscellaneousMiscellaneous3-6 Months of 3-6 Months of Operating CapitalOperating Capital

Financial Plan: Sources and Financial Plan: Sources and UsesUses

Sources of fundsSources of fundsDetails of requested financingDetails of requested financing– AmountAmount– Use Use – TermsTerms

SOURCES & USES OF FUNDS

SOURCES OF FUNDS

INVESTM ENT CAPITALCash on HandInvestm ent by FounderInvestm ent by OthersIncentives and Grants

DEBT CAPITALBank Business LoanBank Personal LoanSBA Guaranteed LoanOther Loans

TOTAL

APPLICATION OF FUNDSRent & Security DepositsEquipm ent/ FixturesLeasehold Im provem entsInitial InventoryW orking CapitalInsuranceProfessional FeesAdvertisingSignageContingency Reserve

TOTAL

CASH FLOW PROJECTION Year OneM onth 1 2 3 4 5 6 7 8 9 10 11 12 Total

Cash In-FlowsSalesOther Incom e

Total In-Flows

Cash Out-FlowsCost of Goods SoldRent/ M ortgageOwner's SalaryOther SalariesAdvertising/ Prom otionUtilitiesLoan Paym ents (current)Loan Paym ents (previous)TelephoneOffice ExpenseDues/ SubscriptionsAccountingInsuranceProfessional FeesInternetRepairs/ M aintenanceLicenses/ Perm itsTravel/ Entertainm entLegal FeesBank ChargesM iscellaneous

Total Out-Flows

Beginning Cash Balance

Ending Cash Balance

Pro-Form a Incom e Statem entYear 1 2 3

SalesLess: Cost of Goods Sold

Gross Profit

Operating ExpensesRent/ M ortgageOwner's SalaryOther SalariesPayroll TaxesAdvertising & Prom otionTelephoneOffice ExpenseDues and SubscriptionsAccountingInsuranceProfessional FeesInternetRepairs & M aintenanceLicenses & Perm itsTravel & Entertainm entLegal FeesBank ChargesM iscellaneousDepreciationAm ortizationInterest

Total Operating Expenses

Net Profit Before Taxes

Pro-Form a Balance Sheet(Opening Day of Business)CURRENT ASSETSCash Accounts ReceivableInventoriesPrepaid ExpensesOther Current AssetsTOTAL CURRENT ASSETS

FIXED ASSETSLandLeasehold Im provem entsEquipm entVehiclesOther Fixed AssetsSubtotal Fixed AssetsLess: Accum ulated Depreciation

TOTAL FIXED ASSETS

TOTAL ASSETS

CURRENT LIABILITIESAccounts PayableShort-Term DebtAccrued ExpensesOther Current LiabilitiesTOTAL CURRENT LIABILITIES

LONG-TERM DEBT

OW NER'S EQUITYPaid-In CapitalRetained Earnings

TOTAL OW NER'S EQ UITY

TOTAL LIABILITIES & OW NER'S EQUITY

AppendicesAppendicesSupplemental materialsSupplemental materials– Resumes of management teamResumes of management team– Past three years of tax returnsPast three years of tax returns– Current bank statementsCurrent bank statements– Copies of existing loans or notesCopies of existing loans or notes– Interim income statement and balance Interim income statement and balance sheetsheet

– Personal financial statementPersonal financial statement– Copies of legal documentsCopies of legal documents– Copies of potential contractsCopies of potential contracts– Letters of referenceLetters of referenceTOTAL PACKAGE FOR A LOAN APPLICATIONTOTAL PACKAGE FOR A LOAN APPLICATION

Sample: Executive Summary (1 of Sample: Executive Summary (1 of 2)2)

JavaNet, unlike a typical cafe, will provide a unique JavaNet, unlike a typical cafe, will provide a unique forum for communication and entertainment through the forum for communication and entertainment through the medium of the Internet. JavaNet is the answer to an medium of the Internet. JavaNet is the answer to an increasing demand. The public wants: (1) access to the increasing demand. The public wants: (1) access to the methods of communication and volumes of information now methods of communication and volumes of information now available on the Internet, and (2) access at a cost available on the Internet, and (2) access at a cost they can afford and in such a way that they aren't they can afford and in such a way that they aren't socially, economically, or politically isolated. socially, economically, or politically isolated. JavaNet's goal is to provide the community with a JavaNet's goal is to provide the community with a social, educational, entertaining, atmosphere for social, educational, entertaining, atmosphere for worldwide communication.worldwide communication.This business plan is prepared to obtain financing in This business plan is prepared to obtain financing in the amount of $24,000. The supplemental financing is the amount of $24,000. The supplemental financing is required to begin work on site preparation and required to begin work on site preparation and modifications, equipment purchases, and to cover modifications, equipment purchases, and to cover expenses in the first year of operations. Additional expenses in the first year of operations. Additional financing has already been secured in the form of: (1) financing has already been secured in the form of: (1) $24,000 from the Oregon Economic Development Fund (2) $24,000 from the Oregon Economic Development Fund (2) $19,000 of personal savings from owner Cale Bruckner $19,000 of personal savings from owner Cale Bruckner (3) $36,000 from three investors (4) and $9,290 in the (3) $36,000 from three investors (4) and $9,290 in the form of short-term loans.form of short-term loans.

Sample: Executive Summary (2 of Sample: Executive Summary (2 of 2)2)

JavaNet will be incorporated as an LLC corporation. JavaNet will be incorporated as an LLC corporation. This will shield the owner Cale Bruckner, and the This will shield the owner Cale Bruckner, and the three outside investors, Luke Walsh, Doug Wilson, three outside investors, Luke Walsh, Doug Wilson, and John Underwood, from issues of personal and John Underwood, from issues of personal liability and double taxation. The investors will liability and double taxation. The investors will be treated as shareholders and therefore will not be treated as shareholders and therefore will not be liable for more than their individual personal be liable for more than their individual personal investment of $12,000 each.investment of $12,000 each.The financing, in addition to the capital The financing, in addition to the capital contributions from the owner, shareholders and the contributions from the owner, shareholders and the Oregon Economic Development Fund, will allow Oregon Economic Development Fund, will allow JavaNet to successfully open and maintain JavaNet to successfully open and maintain operations through year one. The large initial operations through year one. The large initial capital investment will allow JavaNet to provide capital investment will allow JavaNet to provide its customers with a full featured Internet cafe. A its customers with a full featured Internet cafe. A unique, upscale, and innovative environment is unique, upscale, and innovative environment is required to provide the customers with an required to provide the customers with an atmosphere that will spawn socialization. atmosphere that will spawn socialization. Successful operation in year one will provide Successful operation in year one will provide JavaNet with a customer base that will allow it to JavaNet with a customer base that will allow it to be self sufficient in year two.be self sufficient in year two.

planning

Summary Slide

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www.sba.gov (small business resources)www.sba.gov (small business resources)www.incorporate.com, www.incorporatenow.com, www.incorporate.com, www.incorporatenow.com, www.mycorporation.com (information on www.mycorporation.com (information on incorporating, LLC’s, sole proprietorships)incorporating, LLC’s, sole proprietorships)www.census.gov (Market research)www.census.gov (Market research)www.bplan.com (to browse sample plans for www.bplan.com (to browse sample plans for free)free)www.farmingdale.edu/sbdcwww.farmingdale.edu/sbdc

ResourcesResourcesDmnews.com (statistics on direct marketing, Dmnews.com (statistics on direct marketing, trends, consumer behavior)trends, consumer behavior)Clickz.com (online behavior stats)Clickz.com (online behavior stats)Competia.com/express/index.html (trade Competia.com/express/index.html (trade association database)association database)Hoovers.com (info on industries, specific Hoovers.com (info on industries, specific companies)companies)Proquest.com (article search)Proquest.com (article search)Findarticles.com (article search)Findarticles.com (article search)http://sbdcnet.utsa.edu (marketing research)http://sbdcnet.utsa.edu (marketing research)NY Department of Labor StatisticsNY Department of Labor Statisticswww.score.org (Service Corps of Retired www.score.org (Service Corps of Retired Executives)Executives)

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