NOTE: the following outline was created in the 1990s before the advent of internet e-commerce
BUSINESS PLANNING OUTLINE Answer These Questions to Create Your Own business plan Download as Word and Excel files (bus-planner.zip)
SECTION I: STATEMENT OF PURPOSE
A brief (one paragraph)
statement of the business plan objectives.
In General:
What is the purpose of
this plan? Will it be used as an: operating guide? financing proposal?
What is the business structure (i.e., sole proprietorship, partnership, corporation,
S corp, etc)?
Who are the principals?
What is to be done?
Why will it be
successful?
For A Financing Proposal:
Who is asking for money?
How much money is being
requested?
What is the money
needed for?
How will the funds
benefit the business?
How will the funds be
paid?
Why does the loan or
investment make sense?
SECTION II: DESCRIPTION OF THE BUSINESS
What the business is (or will be); e.g. merchandising, manufacturing, service?
What is the nature of
the product(s) or service(s)?
What market you intend
to service, the size of the market, and your expected share;
Why you can service
that market better than your competition;
Why you have chosen
your particular location;
What management and
other personnel are required and available for the operation;
Why your investment or
someone elses money (debt/equity) will make your business profitable.
Status of business:
start-up, expansion of a going concern, or a take-over of an existing
business?
What is the business
form: sole proprietorship, partnership, corporation?
Who are the customers?
Why is your business
going to be profitable?
When will (did) your
business open?
What hours of the day
and days of the week will you be in operation?
For a New Business:
Why will you be
successful in this business?
What is your experience
in this business?
Have you spoken with
other people in this kind of business? What was their response?
What will be special
about your business?
Have you spoken with suppliers to find out what managerial and/or
technical help they can provide?
Have you asked about
trade credit?
If you will be doing contract work, what are the terms? Attach firm contracts as supporting documents.
Do you have letters of
intent for prospective suppliers of purchases?
For a Take-Over:
When and by whom was
the business founded?
Why is the owner
selling it?
How did you arrive at a
purchase price for the business?
What is the trend of
sales?
If the business is
going downhill, why? How can you turn it around?
How will your
management make the business more profitable?
SECTION III: THE MARKET
Generally explain who
needs your product or service, and why.
Who is your market? Describe characteristics: age, sex, profession, income of
market segments
What is the present
size of the market?
What percent of the
market will you have?
What is the market's
growth potential?
As the market grows,
does your share increase or decrease?
How are you going to
satisfy your market?
How will you attract
and keep this market?
How can you expand your
market?
How are you going to
price your service, product, or merchandise to make a fair profit and,
at the same time, be competitive?
What price do you
anticipate getting for your product?
Is the price
competitive?
Why will someone pay
your price?
How did you arrive at
the price? Is it profitable?
What special advantages
do you offer that may justify higher price (you don't necessarily have
to engage in direct price competition)?
Will you offer credit
to your customers (accounts receivable)? If so, is this really
necessary? Can you afford to extend credit? Can you afford bad debts?
SECTION IV: COMPETITION
Who are your five
nearest competitors? List them by name.
How will your operation
be better than theirs?
How is their business:
steady? increasing? decreasing? Why?
How are their
operations similar and dissimilar to yours?
What are their
strengths and/or weaknesses?
What have you learned
from watching their operations?
SECTION V: PHYSICAL LOCATION OF THE BUSINESS (if not on-line)
What is your business address?
What are the physical
features of your building?
Is your building leased
or owned? State the terms.
If renovations are
needed, what are they? What is the expected cost? Get quotes in WRITING
from more than one contractor. Include quotes as supporting documents.
What is the
neighborhood like (stable, changing, improving, deteriorating)? Are
there other special permits or licenses you may need?
Does the zoning permit
your kind of business?
What kind of businesses
are in the area?
Have you considered
other areas? Why is this one the desirable site for your business?
Why is this the right
building and location for your business?
How does this location
affect your operating costs?
SECTION VI: LEGAL STRUCTURE
Describe the legal structure of your business. State whether you have or intend to incorporate your business as a C or an S corporation, form a general or limited partnership, or if you're a sole proprietor or LLC
SECTION VII: MANAGEMENT
What is your business background?
What managementexperience have you had?
What education have you had (including both formal and informal learning experiences) which have bearing on your managerial abilities?
Personal data: age, where you live and have lived, special abilities and interests, reasons for going into business?
Are you physically suited to the job? Stamina counts.
Why are you going to besuccessful at this venture?
Do you have direct operational experience in this type of business?
Do you have managerial experience in this type of business?
Do you have managerialexperience acquired elsewhere - whether in totally different kinds of businesses, or as an offshoot of club or team membership, civic or church work, etc.?
Who does what? Who reports to whom? Where do final decisions get made?
What will management be paid?
What other re-sources will be available (accountant, lawyer)?
If the purpose of the plan is to support a funding application include as an exhibit
a personal financial statement and your resume
Include an organizational chart to lay out who's in charge of what in your company. Show how each person's unique experience will contribute to the success of your venture. Consider including resumes and CVs of key members of your team.
SECTION VIII: PERSONNEL
What are your personnel
needs now? In the near future? In five years?
What skills must they
have?
Are the people you need
available?
Will your employees be
full or part-time?
Will you pay salaries
or hourly wages?
Will you provide fringe
benefits? If so, what? Have you calculated the cost of these fringe
benefits?
Will you utilize
overtime?
Will you have to train
people? If so, at what cost to the business (both time of more
experienced workers and money)?
SECTION IX: APPLICATION AND EFFECT OF LOAN OR INVESTMENT
How is the loan or
investment to be spent? This can be fairly general (working capital,
new equipment, inventory, supplies).
What item or items will
be purchased?
What is the specific
model name and/or number of your purchase(s)?
Who is the supplier?
What is the price?
How much did you (will
you) pay in sales tax, installation charges and/or freight fees?
How will the loan or
investment (your own or others) make your business more profitable?