SAMPLE BUSINESS PLAN

The real value of creating a business plan is not only in having the finished product in hand; the value lies in the process of researching and thinking about your business in a systematic way. The act of planning helps you to think things through thoroughly, study and research if you are not sure of the facts, and look at your ideas critically. It takes time now, but avoids costly, perhaps disastrous, mistakes later. A major aspect of preparing the business plan is to insure there is a market for you product or services and what it will cost to start the business.
This business plan outline shown below is a generic model suitable for all types of businesses. However, you should modify it to suit your particular circumstances. Pay particular attention to your writing style if you intend to use the plan to present to potential investors or for a loan. You will be judged by the quality and validity of your work as well as by your ideas.

It typically takes several weeks to complete a good plan. Most of that time is spent in research and re-thinking your ideas and assumptions. But then, that's the value of the process. So make time to do the job properly. Those who spend the time never regret the effort. And finally, be sure to keep detailed notes on your sources of information and on the assumptions underlying your financial data.

Contact the Las Cruces SCORE office to set up a business counseling appointment with a SCORE volunteer for assistance in getting started on your plan.

Table of Contents - Outline of how the plan is organized.

Executive Summary - Write this section last. We suggest that you make it two pages or fewer.
Explain the fundamentals of the proposed business: What will your product be? Who will your customers be? Who are the owners? What do you think the future holds for your business and your industry?  Make it enthusiastic, professional, complete, and concise.  If applying for a loan, state clearly how much you want, precisely how you are going to use it, and how the money will make your business more profitable, thereby ensuring repayment.

General Company Description - What business will you be in? What will you do?
Many companies have a brief mission statement, usually in 30 words or fewer, explaining their reason for being and their guiding principles. Company Goals and Objectives: Goals are destinations-where you want your business to be. Objectives are progress markers along the way to goal achievement.  Business Philosophy: What is important to you in business?
Your market potential: Who you will sell to and how much. Describe your industry. What changes do you foresee in the industry, short term and long term? Describe your most important company strengths and core competencies.  Legal form of ownership: Sole proprietor, Partnership, Corporation, Limited liability corporation (LLC).

Products and Services - Describe in depth your products or services (technical specifications, drawings, photos, sales brochures, and other bulky items belong in Appendices).  What factors will give you competitive advantages or disadvantages? Examples include level of quality or unique or proprietary features.  What are the pricing, fee, or leasing structures of your products or services?

Marketing Plan - No matter how good your product and your service, the venture cannot succeed without effective marketing. And this begins with careful, systematic research. It is very dangerous to assume that you already know about your intended market. You need to do market research to make sure you're on track. Use the business planning process as your opportunity to uncover data and to question your marketing efforts.

Operational Plan - Explain the daily operation of the business, its location, equipment, people, processes, and surrounding environment. Explain the following components of the business: Production; Location; Legal Environment; Personnel; Inventory; Suppliers and Credit Policies.

Management and Organization - Who will manage the business on a day-to-day basis? Include position descriptions for key employees. If you are seeking loans or investors, include resumes of owners and key employees. Consider the use of Professional and Advisory Support to include some of the following: Board of directors; Management advisory board; Attorney; Accountant; Insurance agent; Banker; Consultant or consultants; Mentors and key advisors.

Personal Financial Statement - Include personal financial statements for each owner and major stockholder, showing assets and liabilities held outside the business and personal net worth.

Startup Expenses and Capitalization - You will have many startup expenses before you even begin operating your business. It's important to estimate these expenses accurately and then to plan where you will get sufficient capital. This is a research project, and the more thorough your research efforts, the less chance that you will leave out important expenses or underestimate them.

Financial Plan - The financial plan consists of a 12-month profit and loss projection, a four-year profit and loss projection (optional), a cash-flow projection, a projected balance sheet, and a break-even calculation. Together they constitute a reasonable estimate of your company's financial future. More important, the process of thinking through the financial plan will improve your insight into the inner financial workings of your company.

Appendices - Include details and studies used in your business plan.