Business Plan Template, Exams of Business

Download Business Plan Template and more Exams Business in PDF only on Docsity! The following business plan template can be customized for your company. This plan can also be found in Appendix B of the NASCLA Contractors Guide to Business Law and Project Management, South Carolina Commercial Contractors, 8th Edition. You may want to work through this plan as you review each chapter, as some of the business plan section topics are covered in more depth. Business Plan Outline Section 1: Cover Sheet 1a. Name of Business 1b. Contact Information Section 2: Executive Summary 2a. Plan Highlights 2b. Keys to Success Section 3: Company Summary 3a. Vision 3b. Mission 3c. Legal Structure 3d. Management and Personnel Plan 3e. Proposed Location 3f. Facilities Requirements 3g. Operational Hours Section 4: Products and/or Service 4a. Product and/or Service Description 4b. Vendors 4c. Technology 4d. Expansion Opportunities Section 5: Market Analysis 5a. Target Market Defi nition 5b. Market Needs 5c. Market Trends 5d. Market Growth 5e. Competitive Comparison Section 6: Marketing Strategy 6a. Value Proposition 6b. Competitive Edge 6c. Pricing Strategy 6d. Promotion Strategy 6e. Marketing Programs Section 7: Financial Plan 7a. Sales Forecast and Assumptions 7b. Profi t and Loss Pro Forma 7c. Source of Financing Note: You may also refer to the Financial Management chapter of the NASCLA Contractors Guide to Business Law and Project Management, South Carolina Commercial Contractors, 8th Edition, for additional fi nancial documents such as a balance sheet, income statement, and statement of cash fl ows. The profi t and loss pro forma is a good tool for newly-established businesses to determine how much revenue is needed to break even. Business Plan Template 000200010272189347_CH18_AppB.pdf February 23, 2019 10:49:11 Section 1: Cover Sheet The cover sheet should contain the name of the business, address, phone number, fax number, email address, and contact name. Some cover sheets also contain a confi dentiality statement. Section 2: Executive Summary A business plan normally starts with an executive summary, which should be concise and interesting. This summary includes the highlights of your plan and serves as an introduction to the rest of your plan. Topics in your executive summary should include, but not be limited to, the following: Business name Business location Product or service off ered Purpose of the plan Projected sales Profi tability Keys to success The executive summary should only be a page or two long. Although the executive summary appears fi rst in the printed document, most business plan developers do not write it until after the plan is complete. Section 3: Company Summary 1. Vision and Mission: Include a vision and mission statement for your company. The vision should be a short statement about the company’s aspirations for the future. The mission describes the company’s primary business purpose or goal. These statements outline the business concept and provide a concise defi nition of where your company fi ts in the market. 2. Legal Structure: Defi ne the legal structure of your company (i.e., sole proprietorship, partnership, corporation, or limited liability company). Explain why you chose this structure and the benefi ts it will provide to you and your company. Legal structure is covered in Chapter 2. 3. Management: Outline the key management personnel needed to run your business. Can you run the business yourself or do you need to hire managers to help run the operations? What are the job responsibilities of these managers? 4. Employees: How many employees do you require? What are the job responsibilities of the employees? 5. Location: Describe the location of your business. You do not need to provide a specifi c address if you do not have one, but identify the area (e.g., downtown location, at home, in a rural area). Explain why this location will provide you with the best opportunity for success. 6. Facility Requirements: Identify your facility requirements. Do you need offi ce space, a production area, storage space, or mobile storage? You may want to draw a diagram of the space. 7. Hours of Operation: What are your hours of operation? Explain how these hours will provide the maximum benefi t to your customer. How will you handle emergency situations that arise outside of normal working hours? Section 4: Product or Service Description Defi ning your product or service (or both) may seem simple. You must describe not only your product or service but how you will provide it to your customers. For example, you may be a general contractor, but without reliable subcontractors and suppliers, you may not be able to complete your projects in the time frame promised to the customer. 000200010272189347_CH18_AppB.indd B-2 23/02/19 10:46 AM Cost of Goods Sold (COGS) Cost of goods sold shows the cost of materials and production of the goods a business sells. For each year, enter your inventory cost and the cost to produce the fi nal product for the customer and add together to show the totals. This total represents the cost of goods sold. Year 1 Year 2 Year 3 Inventory Production Payroll Total Transfer COGS numbers into the profi t-and-loss worksheet. Management Salaries Determine how many managers or supervisors you will need to operate your business. A published salary survey will help you estimate what they earn in your type of business and in your region. Determine if you will need to add managers or supervisors in years two and three if you have an increase in business. Number of Managers Manager Annual Salary Total Management Salaries Year 1 Year 2 Year 3 Enter the total management salaries in the respective boxes on your spreadsheet. Payroll Taxes Payroll taxes are calculated at approximately 13% of the salaries listed on your spreadsheet. A formula has been entered to calculate that amount automatically. Payroll taxes include the following items: Social Security, also known as FICA (a set percentage deducted from an employee’s check and EMPLOYER MATCHED) Medicare, also called FICA Medicare (a set percentage deducted from an employee’s check and EMPLOYER MATCHED) FUTA - Federal Unemployment Tax Act, authorizes the IRS to use monies for job service and training funded through the federal employment agency; EMPLOYER PAID ONLY SUTA - State Unemployment Tax Act, authorizes the state to use monies for job service/training and retraining of displaced workers; EMPLOYER-PAID ONLY FUI - Federal Unemployment Insurance; EMPLOYER-PAID ONLY SUI - State Unemployment Insurance; EMPLOYER-PAID ONLY More details on payroll taxes are provided in Chapter 15. 000200010272189347_CH18_AppB.indd B-5 23/02/19 10:46 AM Outside Services These services apply to people or businesses who provide services to your company not directly related to the sales or income of the company. They would not appear on your payroll. Estimate your annual expenses for the following outside services. Keep in mind that the cost may be higher in the fi rst year due to start-up needs. The cost may drop in the second year and then level off in the third year. Year 1 Year 2 Year 3 Lawyer Accountant Technology Consultant Total Enter the year totals into the spreadsheet. Advertising and Promotion Consider the type of marketing you will need. If you are creating a radio, print media, online, social media, or TV ad, get an estimate on what that would cost. Don’t forget to calculate the frequency of advertising you will do. For example, let’s say a magazine ad costs $1,000 for a quarter-page ad and the magazine comes out monthly. Your advertising cost would be $12,000 a year. You may want to advertise by printing fl yers and mailing them out. Calculate the printing costs as well as the postage to send out the fl yers. Year 1 Year 2 Year 3 Radio TV Newspaper Magazine Flyers Direct Mail Special Events Online Ads Other (i.e., social media) Please Specify: Total Enter the year totals into the spreadsheet. Rent If you rent a facility, determine the rental costs per year. If you have not decided on a location, you may want to look at a few locations and calculate an average rent cost to determine a fi gure for this category. Keep in mind the square footage requirements that you have set out. 000200010272189347_CH18_AppB.indd B-6 23/02/19 10:46 AM Annual Rent Location #1 Location #2 Location #3 Average of all three locations If you are going to stay in one location, your rent should remain fi xed over three years. If you plan on expanding in years two and three, you may want to increase rent accordingly. Enter the average of all three locations in the rent column on your spreadsheet. Offi ce Supplies Offi ce supplies include items such as paper, pens, printer cartridges, tape, and other materials as well as cleaning supplies. As your business increases, the consumption of these supplies may increase accordingly. Year 1 Year 2 Year 3 Offi ce Supplies Cleaning Supplies Total Enter the year totals into the spreadsheet. Dues, Subscriptions, and Licenses You may want to join a Chamber of Commerce or trade group or subscribe to trade publications. Your business may also need a license to operate. For example, if you are starting a plumbing company, you may be required to get a contractor’s license. Year 1 Year 2 Year 3 Chamber of Commerce Membership Business Organization Membership (i.e., National Homebuilders Association) Magazine/Newspaper Subscriptions Business License Fees Total Enter the year totals into the spreadsheet. 000200010272189347_CH18_AppB.indd B-7 23/02/19 10:46 AM Business Insurance By law, businesses are required to carry workers’ compensation insurance. Business liability insurance protects your business against accidents such as fi re, fl ooding, burglary, etc. Business liability insurance is not required by law but by contract. For example, most landlords require you to carry business liability insurance, as do banks and governmental agencies with which you have a contract. Insurance and risk management are covered in more detail in the managing risk chapter (Chapter 4). Year 1 Year 2 Year 3 Workers’ Compensation Business Liability Total Enter the annual totals into the spreadsheet. 000200010272189347_CH18_AppB.indd B-10 23/02/19 10:46 AM Worksheet This is a scratch sheet for entering estimates and data that can then be entered in the spreadsheet. Year 1 Year 2 Year 3 Income Sales Total Income 0.00 0.00 0.00 Cost of Goods Sold Inventory Cost Production Payroll Cost Total COGS 0.00 0.00 0.00 Gross Profi t 0.00 0.00 0.00 Expense Management Salaries Payroll Taxes 0.00 0.00 0.00 Outside Services Advertising and Promotion Rent Offi ce Supplies Dues, Subscriptions, and Licenses Travel Meals and Entertainment Automobile Expense Utilities/Telephone Insurance Auto Insurance Group Medical Business Insurance Total Expense 0.00 0.00 0.00 Net Income 0.00 0.00 0.00 000200010272189347_CH18_AppB.indd B-11 23/02/19 10:46 AM