Chartered Professional Accountant
more than numbers.
What is a Business
It is a written summary of what is
to be accomplished by being in business and how to organize resources to
achieve the goals set out in the plan.
It is a plan for operating the
business and measuring the progress towards those goals.
It is the most important document
to create and review regularly.
Why Create a Business Plan?
To encourage realism.
To identify customers,
markets, pricing strategy and competition.
To improve business
management by focusing on the business goals.
To save time, energy and
To establish the amount of
financing required when needed, and demonstrate to a lender how a loan
is to be repaid.
To help convince a lender
that the borrower is well managed and is a good loan risk.
Headings to include in a
The Executive Summary
- Introductory Summary
- Table of Contents
- Description of the Industry
- Description of the Business Venture
- Business Goals
- Marketing Plan
- Sales Forecast
- Production Plan for Manufacturing
- Production Plan for Retail & Service
- Corporate Structure
- Risk Assessment
- Action Plan
- Financial Statements
- Financial Forecasts
- Financing and Capitalization
- Operating Loan
- Present Financing
- Personal Net Worth Statement
- Letters of Intent
- List of Inventory
- List of Leasehold Improvements
- List of Capital Assets
- Price Lists
- Description of Insurance Coverage
- Accounts Receivable Summary
- Accounts Payable Summary
- Copies of Legal Agreements
Specifics to Consider in a Business Plan:
- What products and services do you plan
- Where do you want the selling to
- How are you going to promote and
market your business?
- Who is your market?
- Do you have reliable and efficient
suppliers and alternative suppliers?
- Who is the competition to your
- What are your sales and revenue
- How much money do you need to operate
- What will you do if your business
exceeds your expectations?
- What does your business expansion plan
- What management skills do you possess,
and who will supply the expertise you lack?
- What is your contingency plan if you
do not reach your sales targets or if your partners disagree with your
- What is your succession plan if you or
your partners die or become inactive?
PLAN FOR SUCCESS
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