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lliance Business Consulting offers business and computer consulting, and related services, to businesses that have a passion and drive for excellence. Alliance believes that there are very few adventures in life that offer more personal challenge or joy than creating the self-employed business of your dreams. We are confident that with our assistance, you get the tools you need to succeed.
Business Plan Description
...The following are the parts of a general business plan. The business plan should cover all the following areas, and answer all the questions. The format, the content, the research and the language are all crucial parts of any professional business plan. Do not be overwhelmed by the extensive nature of this document, let our consultants write it up for you completely.
1. Executive Summary/Business Description
Briefly describe:
- if this is a new business venture, expansion of an existing business or the purchase of an existing business;
- the type of business activity in which you are engaged (manufacturing, wholesale, retail, food processing, service, high technology, etc.);
- your product or service and its uniqueness;
- the market to be served;
- your advantage over the competition;
- the main objectives of your organization;
- your management background;
- the project time frames involved.
(This should be no more than a one page summary of your business plan.)
In addition, briefly describe what form of business structure you have chosen:
- sole proprietorship;
- partnership (enclose agreement);
- corporation (enclose shareholders agreement);
- co-operative (enclose membership agreement).
Include:
- date the business was registered/incorporated;
- the business name and address;
- the business phone number;
- the principal(s) name(s) and telephone number(s);
- the percentage of business or number of shares held by each (in partnership or corporation);
- the Web site address and relevant e-mail addresses.
2. Project Costs and Project Funding
Identify the costs of the proposed business venture and the sources of the project funding.
Project Cost Summary |
|
|---|---|
| Land and Buildings | ____________________ |
| Leasehold Improvements (renovations) | ____________________ |
| Equipment/Furniture | ____________________ |
| Other Assets (goodwill, franchise, etc.) | ____________________ |
| Vehicles (if used in the business) | ____________________ |
| Inventory (opening cost) | ____________________ |
| Other Start-Up Expenses as per Cash Flow (accounting, taxes and licenses, insurance, rent, supplies, etc.) | ____________________ |
| Working Capital | ____________________ |
| Total Project Cost | ____________________ |
Project Funding |
|
| Equity - cash - contributed assets |
____________________ ____________________ ____________________ |
| Land and Building Mortgage | ____________________ |
| Equipment Loan | ____________________ |
| Other Loan | ____________________ |
| Line of Credit (L/C) | ____________________ |
| Grant/Subsidy | ____________________ |
| Total Project Funding | ____________________ |
*Total Project Costs and Project Funding must be Equal
3. Product/Service
- Describe the products to be produced or the services/good to be provided.
- What makes your product/service unique, or, how is your business different from others in the industry?
- What are the features/advantages that will entice customers to buy from you (i.e., convenience, service, performance)?
- Will you offer any product or service guarantees/warranties?
- Provide information on any patents, trade secrets, or other technical advantages over the competition.
4. Marketing
- Identify the total market for your product or service.
- To whom are you targeting your product or service?
- Identify your competition detailing their strengths and weaknesses and your opportunities and threats relative to them.
- How will your competition react to you entering the market?
- What are your past sales (if applicable) and future projections?
- What price (manufacture, wholesale, retail, etc.) do you intend to charge for you product/service and how does it compare to the competition?
- What are your selling terms (cash or credit)?
- Identify promotional campaigns that will be used.
5. Operating Requirements
- Identify your facility requirements as to the size, location, and type of premises. Include drawings of the proposed building layout. Attach the most recent real estate appraisal, offers to purchase or lease agreement, supplier quotations, etc.
- Indicate why you have selected this location.
- Provide details relating to special requirements as to water, power, compressed air, ventilation, heat, air conditioning, drainage, disposal, Department of Health requirements, etc. Attach most recent approvals from Public Health, Liquor Licensing, City zoning, etc.
- Provide a detailed listing (including legal descriptions) of the land and building(s), leasehold improvements, equipment and furniture, vehicles, inventory and other assets. The listing should include the proposed purchase price of each asset.
- Provide a general description of the day-to-day operations of the business (include hours of business, days open, seasonality of business, suppliers and their credit terms, etc.).
- Provide product/manufactured cost estimates (if applicable).
6. Management
- What is the proposed organization chart of the company (i.e. who does what)? Include a brief job description for each position.
- Provide brief management biographies of the key personnel (include their ages and backgrounds in this type of business).
- State the compensation package (salary, bonus, profit sharing, etc.) for each member of management.
7. Personnel
- List employees (not owner or manager) using the following headings:
- position: full-time, part-time, seasonal, temporary;
- method of payment: hourly, monthly, commission, etc.
- Provide a job description for each position, identifying the responsibilities and duties involved. Include what skill level is needed.
- If job training is required, identify the duration and the cost of the training.
8. References
Identify your:
| Name | Phone Number | ||
|---|---|---|---|
| Accountant | _______________ | _______________ | _______________ |
| Banker | _______________ | _______________ | _______________ |
| Consultant | _______________ | _______________ | _______________ |
| Insurance Company | _______________ | _______________ | _______________ |
| Lawyer | _______________ | _______________ | _______________ |
9. Financial Projections
Provide a projected (pro-forma) three year cash flow, balance sheet and profit or loss statement.
10. Additional Information
It is common for a financial institution to request that the principal(s) submit, with a loan application, a statement of personal net worth. This form is usually provided by the financial institution. If applicable, historical financial statements on the business venture may also be requested. Other supplementary and supporting documents for your business plan should be included in appendices.
Note: As suggested by the Government of Saskechewan, and can be found at "http://canadabusiness.gc.ca".
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