Business Plan Basics - The Controllership Group

Business Plan Basics
Presented by: Tim Garrison, CPA
From: The Controllership Group
Who Needs A Business Plan?
• Individuals starting a new business
• Managers that are responsible for a
business, product lines or profit centers
• Anyone trying to buy an existing business
Why Do a Business Plan
Start up of a business
Major change in an existing business
Investigate a business opportunity
Bankers and investors
New Ventures Business Type Is
Sole proprietor
Single Member Partnership (LLC
Sub S Corporation
What Is A Business Plan
• It is an opportunity to work on your
business rather than in it.
• Properly done it provides you direction on
where you are going. Not unlike a
• Forces you to investigate and research
everything that is or will be part of your
Plan Outline
• Executive Summary (compelling 2-3 pages it
actually is written last)
What is unique about your offering
What stage are you in 3-5 year vision
Market opportunity
Management – who is the complete team
Summarize financial highlights
Summary money invested and money needed, how it
will be used and terms of deal you are offering
Plan Outline
• The Company
• Background on company where organized
• Is it an LLC, LP, INC
• What are the revenues and profits if business
exists at this point
• Key players in directing company
Plan Outline
• Product/Industry
– Describe your product
– Where are you at (being researched, in
– What makes your service or product unique
– Where is industry going
– Competition
Plan Outline
• Market research, competitors and analysis
– Overview of market and your positioning
– Statistics on market (verifiable independent
resources increase credibility)
– Honest assessment of competitors
– What this means upside and downside
Plan Outline
• Marketing And Sales Approach
– Overview of your approach to the market
– How is your product priced?
– Promotion of product/service
– How is product or service sold?
Plan Outline
– Who Manages And Owns The Company
Describe the management
Who owns the business
How are these people paid and perks
Support team
Plan Outline
• Organization And Operating Plan
– What your organization looks like
– Short version of business processes
– Short version of systems in place
Plan Outline
• The financial Plan (below is typical for
equipment financing)
– 3 year projected balance sheet, cash flows
and income statements
– Assumptions on how $$$$ were arrived at
Plan Outline
• Proposed Company Offering
– If equity - what do you need and what are you
offering for it.
– If debt what do you need, interest rate and
repayment terms you are asking for.
– Uses of cash should be provided also
The Business Plan Team
• Your teams strengths will determine who
you need to add to your team to balance it.
• Few people should attempt this alone!!
• The team
– CPA or qualified business advisor
– Attorney
– Banker
– Insurance agent
– Your internal management team