At Businesstools,we have developed an actionable Business Profitability Improvement Plan containing detailed business strategies to help you reduce costs,beat your competitors,attract more customers and boost sales.For enquiries,call: 07030949450.

Business is a game just like football,table tennis,basketball etc.Sometimes,you win, other times,you lose.The more strategic you are,the greater your chances of winning.

Business opportunities are like buses,they'll always keep coming.

Nolan Bushnell wrote,"The critical ingredient is getting off your butt and doing something.It's as simple as that.A lot of people have ideas,but there are few who decide to do something about them now.Not tomorrow.Not next week.But today.The true entrepreneur is a doer,not a dreamer.

"Good business leaders create a vision,passionately own the vision and relentlessly drive it to conclusion."-Jack Welch.

Orison Swett Maden wrote,"The golden rule for every businessman is this: Put yourself in your customer's place."

One of the major causes of business failure is venturing into business for the wrong reason.Are you starting a business just because you can? or perhaps to fulfil someone else's desires? Starting a business requires a lot of hard work so make sure you are doing it for the right reason.

Choosing an unprofitable business is another cause of business failure.It's one thing to start a business,however make sure it's a profitable one.Even though you generate lots of activity,if the profits never materialise to the extent necessary to sustain the business,the venture will not stand the test of time.

"Leadership is doing what is right when no one is watching."-George Van Valkenburg

FREE BUSINESS PLAN TEMPLATE
















Table of Contents.


Executive Summary 1-1
Mission 2-1
Company Overview 3-1
Legal Business Description 3-2
Strategic Alliances 3-3
Product 4-1
Current Product 4-2
Research and Development 4-3
Production and Delivery 4-4
The Market 5-1
Market Definition 5-2
Customer Profile 5-3
Marketing Plan 5-4
Sales Strategy 5-5
Distribution Channels 5-6
Advertising & Promotion 5-7
Competition 6-1
Risk/Opportunity 7-1
Management Team
Personnel 8-1
Financial Plan 9-1
Assumptions 9-2
Financial Statements 9-3
Conclusion 9-4
Exhibits 10-1



Executive Summary



Mission
Our company's mission is to [describe your ultimate goal, or insert your mission statement].



Company
[The Company] was founded in [date] and [describe what your business does, such as baby products manufacturer, distributor of pencils, provider of medical services]. It is a [legal form of your company, such as LLC, S-Corporation, C-Corporation, Partnership, Proprietorship]. Our principal offices are located at [x].



Business
We make [describe product, or service that you make or provide].


Our company is at the [seed, start-up, growth] stage of business, having just [developed our first product, hired our first salesman, booked our first national order].


In the most recent [period], our company achieved sales of [x], and showed a [profit, loss, break-even]. With the financing contemplated herein, our company expected to achieve [x] in sales and [x] in pretax profits in 19[xx] and achieve [x] in sales and [x] in pretax profits in 19[xx+1]. We can achieve this because the funds will allow us to [describe what you will do with the funds, such as a) marketing for your new product, b) build or expand facilities to meet increased demand, c) add retail locations or others means of distribution, d) increase research and development for new products or to improve existing ones.




Product or Service

[The company] produces the following products; [list products here briefly, in order of highest sales or significance in product line].


Alternatively, [The company] delivers the following services; [list services here briefly, in order of highest sales or significance in product line].


Presently, our [product or service] is in the [introductory, growth, maturity] stage. We plan to follow this [product or service] with extensions to our line which include [x,y,and z].


Critical factors in the [production of our product, or delivery of our service are [x, and y]. Our [product or service] is unique because [x,y,or z] and/or we have an advantage in the marketplace because of our [patent, speed to market, brand name].


The Market
We define our market as [manufacture and sale of writing and drawing instruments, low fat cheese, oral care products]. This market was approximately [$x] at [wholesale or retail] last [period available], according to [site resource], and is expected to grow to [$x] by the year [x], according to [site resource].


Who are your customers? Where are they, and how do you reach them? Are they buying your product / service from someone else?
How will you educate customers to buy from you? Why will they care?







Competition
We compete directly with [name competition]. or We have no direct competition, but there are alternatives to our [product or service] in the marketplace. Our [product or service] is unique because of [x] and/or we have a competitive advantage because of our [speed to market, established brand name, low cost producer status].



Risk/Opportunity
The greatest risks we have in our business today are [market risk, pricing risk, product risk, management risk]. We feel we can overcome these risks because of [x].
The opportunities before us are significant; we have the opportunity to [dominate a niche in the marketplace, become a major force in the industry] if we can [x].



Management Team
Our team has the following members to achieve our plan. [x] men and women who have a combined [x] years of experience; [y] years in marketing, [y] years in product development, and [y] years in [other disciplines].



Capital Requirements
We seek [$] of additional [equity, sub-debt, or senior financing] which will enable us to [describe why you need the funds, and why the opportunity is exciting]. We can provide and exit for this [loan, investment] within [x] years by [a dividend of excess profits, recapitalizations, sale of company, or public offering].



Financial Plan


At this point the investor must have a clear idea of where your business stands today. If you bore him or make the information he needs hard to find, you get canned. You must provide a snapshot, however sparse, of your financial position.



Balance Sheet Summary
Assets:
Liabilities:
Book Value:






Mission


Mission Statement
Our goal is to become [describe your ultimate goal, or insert your mission statement; example; the leading manufacturer and marketer of branded in-line skate replacement wheels or the first name in low fat cheese].



We aspire to carry a reputation in the marketplace for developing and delivering [time saving, better-way products sold at a fair price for uses in the {x} market]. We can achieve this by [cutting edge product development, close understanding of market trends and needs, innovative and profitable merchandising and packaging].



To accomplish our goal, [your company name] needs [capital, management talent, larger, more efficient facilities].



In pursuit of our goal, we resolve to treat stakeholders, customers, and the community with [description of the reputation your company seeks]. These groups see our company as providing [describe benefits to each group of being associated with your company].

The Company

[The Company] was founded in [date] and [describe what your business does, such as baby products manufacturer, distributor of pencils, provider of medical services]. The legal name of the business is [x]. Include dba in the legal name.


It is a [legal form of your company, such as LLC, S-Corporation, C-Corporation, Partnership, Proprietorship]. Our principal offices are located at [list primary address as well as any other facilities]. We have approximately [x] square feet of office space and [x] square feet of [factory or warehouse]. Our current capacity is [x] units per month. If we exceed [x] units per month, we will need additional space. We expect this facility to be adequate for the company's needs for [two years, a year, a week] after funding.



Regulations and permits
[Your Company Name] operates in the [toxic waste, weapons and armaments, genetic engineering, explosives] industry, or [uses controlled substances in the manufacturing process or delivery of service], and falls under the jurisdiction of the [name government agency].


[Your Company Name] has all necessary permits to operate, and has an up-to-date record of inspections. These permits include; [list briefly here]. These agencies regulate our business in the following manner; [we must document and account for uses and disposal of all toxic materials or we must document and background check all employees with access to the launch codes for our missiles].



Strategic Alliances

[Your Company Name] has developed important and profitable strategic alliances with the following larger, more established business; [describe each company, it's position in the marketplace, the details of the alliance, and what risks are involved in the alliance]. For example, we have developed marketing agreements with [x], the [market leader in gummed erasers] which will enable us to sell, along side them, our [extra messy children's pencils].


The side by side positioning at retail, as well as the ability to share wholesale sales leads with their established customer base can help us penetrate the market more quickly.


The risk in the relationship is that they may [decide to sell pencils themselves] and cut us out of the process.



Another type of strategic relationship that benefits the company is our development joint venture with [x]. We would never be able to fund the research of the new [low fat Swiss cheese that melts smoothly], but with access to their prior research in [smooth melting cheddar] we cut our development time in half. By using some of their [equipment, or people] who we not being utilized fully, we were able to avoid the expense of [major capital expenditures, additions to the payroll]. We have agreed to pay a royalty of [x] to this development partner for their role in this products ultimate success.


We have a strategic relationship with a number of suppliers. In exchange for a blanket commitment to purchase [more than 80% of our supply of a specific raw material from them], they have agreed to [not make it available to the market at large for six months, or to give us a preferential price].


[Your Company Name] also has strategic Original Equipment Manufacturer relationships with a number of customers. This allows us to sell a large and steady volume of [in-line skate wheels] to [boot manufacturers, who use them to sell complete skate sets]. This gets many units of our product out in to the marketplace, however, it provides little or no brand awareness for us.



The Business

[Your Company Name] is a [manufacturer, distributor, marketer, service provider] of [describe your product or service].


Our company is at the [seed, start-up, growth] stage of business, having just [developed our first product, hired our first salesman, booked our first national order].



Product or Service
Explain how your product works or how the service is used. What burning marketplace needs are addressed by your product? What value do you add to the product?

[The company] produces the following products; [list products here, in order of highest sales or significance in product line]. Be sure to refer readers to product pictures, diagrams, patents, and other descriptive material.



Or, Alternatively
[The company] delivers the following services; [list services here briefly, in order of highest sales or significance in product line].
Be sure to refer readers to brochures and material describing your service.



Presently, our [product or service] is in the [introductory, growth, maturity] stage. We first developed our [product or service] in 19[xx] and have made [x] improvements and redesigns since then. Provide a history of product developments, introductions, and improvements leading up to the present day. Table form may be appropriate.




Unique features of Product.
Our products are unique because of [of secret ingredient, our patented process, our proprietary manufacturing process].


Others in the market are able to provide somewhat similar [products or services], but we are able to differentiate ourselves in the market because of [x].


We have [applied, been granted, licensed] a patent for [x], an abstract of which can be found in appendix [x]. We have integrated this into our process which others will not be able to duplicate. Our lead product, [x] addresses the following customer needs [x] and delivers [x] benefits to customers.


Tell us about the unique value-added characteristics your product line or process provides to customers and how these characteristics translate into a competitive advantage for your company.



Research and Development
Our research and development is headed by [name of person or contractor] whose major objective is to use market input to [develop products that solve problems or provide superior benefits to customers]. Last [period], our R & D yielded the following products and innovations; [list products or innovations]. [Your Company name] has spent [% of revenues, or absolute $] in the past year in R & D, and plans to spend [% or $] in the next [period].


Our R & D occasionally yields innovation without input from customers or the marketplace. Our product selection criteria in this case is as follows; [relatively low investment requirements, positive return on investment, fit with present strategy, feasibilty of development and production, relatively low risk, time to see intended results, buyer in common]. Our R & D will require additional resources in the future. These will include [people, capital expenditures] to [speed up development process, test results more efficiently].




Production
Our [product, service] is [manufactured in house, assembled in house from components from various vendors, (service) provided by our staff, or subcontracted to field consultants]. [Raw materials, sub-assemblies, components] used in our products are readily available from a variety of manufacturers who can meet our quality standards.


Critical factors in the [production of our product, or delivery of our service are [x, and y].


Enumerate and explain capital equipment, material, and labor requirements. Are the above items readily available? Do you have multiple supply sources? List inventory requirements, quality and technical specifications, hazardous materials


Uniqueness
Our [product or service] is unique because [x,y,or z] and/or we have an advantage in the marketplace because of our [patent, speed to market, brand name].



















The Market


Market Definition
What markets are you competing in? If you make glove-compartment hinges, don't gush about the $80 billion automobile market. You make hinges -- not cars -- for that market, so tell us how many hinges were sold last year. Are there other markets where you sell your products?


We [expect to compete, are competing] in the [define niche] of the [define industry]. This market was approximately [$x] at [wholesale or retail] last [period available], according to [site resource]. We believe, the major future trend in the industry will be toward [environmentally oriented, miniaturized, high quality, value oriented] product offerings.


Market research [cite source] suggests this market will [grow/shrink] to [$x] by the year [19xx]. We expect the niche in which we compete to [grow,shrink, remain stagnant] during this time. The major forces affecting this change will be [falling cost of computers, explosion of home based businesses, tendency for baby boomers to have less kids- and pamper their pets]. The area of greatest growth within the industry will be [x].

Identify where you got this information, and how up to date it is.



Market Segment
We define our market segment as [the writing and drawing instrument segment of the school/home/office products industry, the low fat dairy products segment of the food industry]. This segment has been [volatile, steady] in the last few years. Industry experts [name them] forecast [x] for the industry in the next few years.

The major market segments [segment a, segment b, segment c]. List, in general, the types of customers you are likely to reach (retailers, electrical contractors, catalog buyers, etc.)] The [a] segment of the market is based on [product type] that retail in the [x to y] price range. Most of the sales in the segment are delivered through the [catalogs, retailers, manufacturers reps, OEM's].



A typical customer for our product is a person who currently may use [alternative product or service] for [what purpose]. They are motivated to buy our product because of [its value, its quality, its usefulness]. We know this from [customer responses, trade show input, ad inquiries] and feel our customers perceive our products as [good value, superior performance, great taste].



Our product, does, however, have the following weaknesses; [higher price point than most other cheeses, weak brand identity in a commodity market]. We are working to position our product as [x] in order to reduce this vulnerability.



Marketing
Our marketing plan is based on the following fundamentals;
We expect to penetrate the [x] segment of the market[s] and achieve this by using the [retail, mail order, multi-level marketing, internet] as our primary distribution channel[s]. In time, we plan to capture [%] share of the market.




Position
We will position our product as [good value for price, top quality, cheap and fun], which is a position not presently being addressed by the competition. One demographic group in particular, the [elderly, hispanic, generationX, techies] has a particular need for this product, and we tailor our positioning accordingly.




Pricing
Our pricing strategy is [describe policy or, at least philosophy]. Is this pricing based on cost? Gross margin objectives? Market?

We arrive at our pricing based on [cost, gross margin objectives, market prices, perceived value].


We review this pricing [monthly, quarterly, annually] to ensure that potential profits are not squandered. Customers seem willing to pay as much as [x] because of [explain reasoning].




Distribution channels
The distribution channels we use for our product are [wholesalers, cataloguers, mass merchant retailers, consolidators, shopfront, export, internet ]. These make sense for delivering our product to the end user because [customer profile, geography, seasonal swings]. The competition uses the [[wholesalers, cataloguers, mass merchant retailers, consolidators] channel. Our channel will prove more advantageous because [x].


Our major current customers include; [list top five, with one or two sentence descriptions]. The attached chart [see appendix z] demonstrates how our product reaches the customer.



Advertising & promotion


[Your Company Name] has developed a comprehensive advertising and promotion strategy, which will be implemented by the best possible firm when funding is completed. We expect to have a presence in several national magazines as well as the trade press. We will produce our own ads and be a part of ad campaigns of our JV partners or OEMs. Our publicity plan is to remain in constant contact with editors and writers of the [trade journals that serve our industry] and seek stories and coverage that will [enhance our reputation, introduce us to buyers].

We plan to promote our product through a variety of [on site product sampling, demonstrations at high profile events, give-aways at fund raisers] and other high leverage events. The objective of all our promotions is to [expand the audience, position our product as a premium brand, strengthen our ties to the community].


[Your company name] participates in the following trade shows; [list trade shows, briefly describe organization that sponsors it and who attends, and describe presence there]. We have a regular [20 foot display booth of knock down construction which allows us to display our existing products and introduce new ones, or we prefer to attend trade shows as visitors and walk the show while displaying our wares only to pre-qualified buyers who will come to our nearby hospitality suite]. The following factors are taken into account when considering a trade show; will this event help deliver our message to our target audience? Does the location of the show have significance? Is the time frame convenient? Is it a "must-go show"?










Competition

Tell us about key competitors in regard to product, price, location, promotion, management, and financial position. False or incomplete information here translates as dishonesty and negligence to investors, bankers, etc. Do not delude yourself (or your investors) about your competition.

Look in your telephone book's yellow pages. Look in the industrial directories at your local library. Search on-line databases that provide competitive profiles of other companies. Read industry magazines and look for advertisers.

We have no direct competition, but there are alternatives to our [product or service] in the marketplace.
or
We compete directly with [name competitor a, b, and c].


Provide a sample of each...[example...Acme Inc. is a $3 million sales manufacturer and marketer of pencils in the Northeast region. Acme Inc. is a division of Acme Corp, a public company with $800 million sales. The division sells pencils, pens, and other writing and drawing instruments. The recent trend for the division has been static, as the parent has not provided working capital to modernize machinery. Acme Inc. is managed by one Vice President who has been there for six months. The previous manager worked there for 11 months.]


The competition [does,doesn't] [use the same means of distribution as the company, advertise in the same trade journals]. If the advertising is regular-it probably works!


Our [product or service] is unique because of [x] and/or we have a competitive advantage because of our [speed to market, established brand name, low cost producer status].



Risk/Opportunity

Business Risks

Some of the major risks facing our development include [limited operating history; limited resources; market uncertainties; production uncertainties; limited management experience, dependence on key management].


Opportunities

Although our business today has its share of risk, we feel we can overcome these risks because of [x]. We will address [market risk] by [doing a comprehensive study, partnering with a larger company who knows the market]. We feel we can address [pricing risk, product risk, management risk] by focusing on [x].


If we are able to overcome these risks, our company has the opportunity to [dominate a niche in the marketplace, become a major force in the industry]. We feel our brand could become know as the [place entrepreneurs look for financing help, the place people look for good tasting, low fat cheese]. We think we can achieve this goal in the next [x] years.


Specifically, our lead product [x], has the chance to [change the industry, affect many lives, improve performance in the [x] field]. This would also enable us to tap markets we have not yet begun to approach, such as [international sales, ethnic market, genX].



Management Team

Tell us not only about your managers, but how they work together as a team.

Our team has the following members to achieve our plan. [x] men and women who have a combined [x] years of experience; [y] years in marketing, [y] years in product development, and [y] years in [other disciplines].


Frankly, if you have more than a few people filling these positions, you're lucky. Tell us who you have, how much they have aged, and how much of the company they own.



Officers and Key Employees

[A], President

[B], Vice President of Marketing

[C], Vice President of Sales

[D], Vice President of Finance

[E], Vice President of R & D

[F], Vice President of Operations

[G], Controller

[H], Corporate Attorney




Personnel

Job Title Quantity Expected staff turnover Skills necessary Date required
[e.g. Office Manager] [1] [2-3 years] [Relevant qualifications in Office Management. At least 2 years experience.] [Dec 09]



Recruitment options [How do you intend on obtaining your required staff? Advertising in local magazines, online advertising etc.

Training program

Remuneration











Ownership
The company has authorized [x] shares of common stock, of which [100] are issued and outstanding. The following persons or organizations are significant owners of the company;

Name # Shares Held % Ownership
[A. B. Founder] 52 [52%]
[C. R. Inventor] 22 [22%]
Management Team 10 [10%]
[Seed Ventures] 10 [10%]



Professional Support
We have strung together a team of professionals, including;
[Corporate Attorney]
[Accounting Firm]
[Other Consultants]



Board of [Advisors, Directors]
We have also secured the assistance and support of the following business and industry experts to help in the decision making, strategizing, and opportunity pouncing process;

Highlight your board members, detailing where and why they add strategic importance, what experience they have and what contacts they can contribute.











Financial Plan



Assumptions
The financial projections assume the following;


.

• We expect to be able to sell at the rate of [x] units per month within [x] months of introduction.

• Cost of good sold will [decrease as a percentage] as we are able to buy more efficiently in the marketplace and use our new equipment to produce more units at lower cost.


• Gross profit will remain static as [new introductions will be at higher margins, while we expect margins of older lines to erode].

• We have assumed that our suppliers will be willing to grant us terms of [x] until we reach monthly purchases of [x].At that time, we have assumed that our terms will be stretched to [x] days.

• We have also assumed that we can collect our billings within [x] days.

• We have assumed that the first part of our [loan , investment] will be made in [months], and the balance in [months]

• We can reach break even by the [x] month. Sales are expected to be at the [$x] level by that time.

"To think is easy.To act is difficult.To act as one thinks is more difficult."-Johann Wolfang Von Goeth.

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"I like thinking big.If you're going to be thinking anything,you might as well think big."-Donald Trump.

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