Business Paln

OUTLINE FOR A BUSINESS PLAN

Cover Sheet

# Company’s name, address, phone/fax numbers, and the name of a contact.

Executive Summary

Should be short, usually no longer than two or three pages), yet summarizes all the highlights contained in the remainder of the Plan. Information that should be covered in the Executive Summary includes:

# Company name, address and phone number

# Purpose of the Plan

# Amount and purpose of the desired financing and how loan will be repaid

# Management team make up

# Product/Service and information concerning marketing and customer potential

# Abbreviated financial information

Table of Contents

# As detailed as possible, with page numbers for easy reference.

The Company, including Management

# Description of company, including size, ownership and form (proprietorship, corporation, etc.)

# Short and long term goals

# Principal owner-managers (list everyone owning more than five (5) percent)

# Management teams make up, responsibilities and skills (include detailed biography in Appendix Section at end of plan)

# Board of Directors

# External advisors such as accountants, lawyers

# SWOT (Strengths, Weaknesses, Opportunities, Threats)

Mission/Vision Statement

# Mission Statement

# Company Vision

Products or Services

# Description of Product/Service

# Advantages of Product/Service

# Proprietary Features

# Product Development Activities

# Product Liability

Industry Analysis

# Industry Overview

# Company Niche

# Industry Participants

# Industry Trends and Growth Patterns

Marketing Information

# Market size and history, demographics and size of customer base

# Your cost versus competition

# Competition, and how you plan to compete to gain market share

# Competitive edge (why your products/services will be successful)

# Pricing and profitability of products/services

# Advertising and promotion plans

# Marketing strategy, distribution channels and sales force

Facilities and Operations

# Location and description of facilities

# Capital equipment requirements

# Labor force needs

# Cost and quality control

# Suppliers and extent of outsourcing, if any

# Major Risks

# Major Obstacles to Success

Financial Information

If possible, have an outside source (such as an independent accountant or the SBDC at a nearby university) prepare the following information

# Desired financing, use of proceeds (provide quotes from sources such as capital equipment suppliers, contractors, etc. in the Appendix section)

# Payback and collateral

# Balance sheet and income statement for past two years (if new company, include financial information on major principals)

# Sales and cost data

# Profit and loss/cash flow forecast, by month for first year, by year for years two and three

# Breakeven analysis

# Summary of all significant assumptions used in forecast

Appendix

Include information such as biographical information on owners/management team members, quotes from equipment manufacturers/suppliers/contractors, and letters from potential/existing customers, published reports on industry trends, product catalogs, etc.

Income, and Expense Accounts

to consider in developing budget for new business

Income

Cash Sales

Credit Sales

Misc. Income

Accounts Receivable

Allowance for Bad Debts

Expenses

Inventory (Raw Material or products)

Owner/Management Salaries

Other Salaries and Wages

Payroll Taxes & Expenses Social Security, Medicare, Federal (FUTA) and State Unemployment Taxes, Unemployment Compensation, Worker’s Comp (when you start paying them)

Furniture/Equipment Purchased

Depreciation

Accounts Payable

Contracted Services

Repairs & Maintenance

Supplies (Office & Operating)

Advertising/Marketing

Car, Delivery, & Travel

Accounting & Legal

Rent

Telephone

Utilities

Insurance

Taxes & Licenses

Interest on Loans

Other (Specify)

Misc Small (very) items that may not fit elsewhere

Note – there may be other expense accounts that will need to be added as you grow, or that are particular to your business.

BUSINESS INSURANCE

Essential Coverage

Because a business is more vulnerable to liability and property damage claims than an individual, you will need to protect yourself from the potentially devastating effects of such claims through insurance. The following briefly describes some of the types of insurance that you need to consider for your business.

Bodily Injury and Property Damage Liability. This is similar in concept to the liability insurance you carry on your car, but contains additional provisions that apply to businesses. There are two types:

! General Liability Insurance: Protects the company against financial loss due to bodily injury and property damage claims arising out of the insured firm's legal liability. There are three basic policies: Owners', Landlords' and Tenants (OL&T), Manufacturers’ and Contractors' (M&C), and Comprehensive General Liability (CGL). Basic policies usually contain exclusions that you may want to insure against through additional coverage. Check to see if your policies cover the appropriate items below:

Products Completed operations

Owners and contractors protective Independent contractors

Elevator collision Employers non-ownership liability

Hired auto coverage Broadform property damage coverage

Contractual Personal injury

Garage liability Garagekeeper's legal liability

Professional liability Broadform comprehensive general

liability

Personal or family auto insurance is not generally adequate for vehicles used in commerce, whether owned by the company or by the firm's employees. Such vehicles should be included in your business liability coverage.

! Commercial Umbrella Insurance: Protects a business from truly catastrophic losses. It provides coverage above the limits of your general liability policies. Coverage for losses from perils not covered in your other insurance always carries large deductibles.

Workmen's Compensation Insurance: As an employer, you are obliged by law to provide your employees with safe working conditions and tools, competent fellow workers and warnings of any hazards in the workplace. An employee injured in the course of his or her duties is automatically entitled under workmen's compensation laws to four types of benefits -- medical, disability income, death, and rehabilitation. There are three elements in workmen's compensation insurance:

! Worker's Compensation. This coverage is required under the workmen's compensation statutes of the State of Louisiana.

! Employer's Liability Insurance: This covers claims under common law for work-related injuries suffered in the course of employment whether or not it is on the job site.

! All State Endorsement: This provides automatic coverage for workmen's compensation claims in states not listed in the policy declaration.

Desirable Coverage

Not all hazards are covered by the policies listed above. Depending on the nature of your business, you may need to consider some of the following forms of coverage.

! Inland Marine Coverage: An umbrella term for various types of policies covering business personal property that is frequently excluded or only covered to a limited degree by general policies. It covers such things as accounts receivable, valuable papers, customers’ goods, property in transit, neon signs and property away from premises.

! Business Interruption Insurance: Covers loss of profits and continuing fixed charges while the business is out of operation or limited in its capabilities following a fire or other disabling event. Other liabilities that can be insured against include loss of rents, extra expense of operation and leasehold interest coverage.

! Sprinkler Leakage Insurance: Insures against damage from accidental fire sprinkler discharge.

! Boiler and Machinery Insurance: Covers boiler failures or explosions, air conditioning and refrigeration systems, transformers and electrical panel boards, water heaters, piping, compressors, fans and electric motors.

! Glass Insurance: Covers the cost of replacing of plate glass damaged by almost all causes.

This list does not include all of the insurance possibilities available to businesses. It would be worth your time to discuss your business’ insurance needs with at least two qualified insurance agents.

The Coordinating and Development Corp.

5210 Hollywood Avenue, P. O. Box 37005

Shreveport, LA 71133-7005

Phone: (318) 632-2022

Fax/TDD: (318) 632-2099

E-mail: [email protected]

Copyright 2003, The Coordinating and Development Corporation. Redistribution to all others interested in economic development is strongly encouraged. Please cite The Coordinating and Development Corporation whenever portions are reproduced or redirected.