Company Name: Business Plan
Your Name
Your Contact Information
Effective Date
COMPANY NAME: BUSINESS PLAN................................................................ 1
A. Executive Summary ........................................................................................................ ....................... 3
B. Business Profile....................................................................................................................................... 4
Your business objectives ......................................................................................................................... 4
Growth expectations and strategy ............................................................................................................ 4
C. Ownership and Management.................................................................................................................
Ownership.................................................................................................................... .............................
Management and advisors ........................................................................................................................
Professional services ....................................................................................................... .........................
6
6
6
6
D. Business Environment Analysis............................................................................................................. 7
History ..................................................................................................................... ................................. 7
Industry overview...................................................................................................................................... 7
Industry position............................................................................................................ ............................ 7
E. Marketing Plan............................................................................................................ ............................
Target market ...........................................................................................................................................
Competitors.................................................................................................................. .............................
Competitive advantages............................................................................................................................
Sales and marketing planning................................................................................................. ..................
9
9
9
9
10
F. Operations................................................................................................................ ................................ 11
Location .................................................................................................................................................... 11
Equipment.................................................................................................................... ............................. 11
Suppliers ........................................................................................................................................... ........ 11
Cost centres................................................................................................................. .............................. 11
Human resources.............................................................................................................. ......................... 12
Sales........................................................................................................................................................... 12
Customer Service ............................................................................................................ .......................... 12
G. Financial Statements............................................................................................................ ................... 13
Balance Sheet............................................................................................................................................ 13
Income Statement............................................................................................................. ......................... 14
Cash Flow Forecast .................................................................................................................................. 15
Financing needs.............................................................................................................. ........................... 16
Current banking arrangements................................................................................................. .................. 16
I. Personal Financial Statement................................................................................................. ............... 18
Net worth ................................................................................................................................................. 18
Employment history .......................................................................................................... ....................... 19
J. Appendix................................................................................................................................................... 20
A. Executive Summary
Your executive summary should include:

A brief description of your business, including industry sector, the market you will
serve and your competitive advantage

The purpose of your business plan, whether it’s to secure financing, attract an
executive team or to lay-out your long-term strategy

A description of your product or service, its stage of development and its
competitive advantages

A description of critical factors that will make a difference to your success, as well
as your most vulnerable areas and how you plan to guard against them

An outline of the legal structure of your company

A summary of your management team’s experience and credentials

A list of potential customers, and a description of your market potential

A description of your financial forecasts and how they were determined

Your financing requirements (if any), and how and when the money will be
paid back

If you have an existing company, include a brief company history and the
company’s achievements
B. Business Profile
Your business profile should answer the following questions:
What is your legally registered business name?
What is your trade name (if different than above)?
What is the contact information for your business (address, phone and fax
numbers, email address)?
Is this a new or existing business?
What date was your business established?
What form of ownership does your business have?
 Sole proprietorship
Date of trade name registration:
 Partnership
Date of registration:
 Corporation
Date of incorporation:
What products or services does your business provide?
What industry sector do you operate in?
 Retail
 Manufacturing
 Service
 Franchise
 Other _______________________________________________
Your business objectives
What are the key objectives of your business in the short term (first year)?
What are the key objectives of your business in the long term (three to five years)?
Growth expectations and strategy
Where do you expect your business to be at the end of this year, in three years
and in five years?
How will you achieve this growth?

In the first year:

At three years:

At five years:
C. Ownership and Management
Ownership
Who are the owners of your business, and what is each owner’s percentage share of
the company? Add the resume of each owner to the appendix.
Name: _________________________________________ Ownership %: ____
Management and advisors
What are the major categories of business management in your company? (e.g.,
marketing, sales, administration, etc.) Add an organizational chart to the appendix.
Who is on your company’s management team? In addition to a resume, include a
short biography of each member of your management team to the appendix,
including their management strengths, credentials and commitment level.
Name: _________________________________________
Who is on your company’s board of directors or board of advisors? In addition to a
resume, include a short biography of each member of your board to the appendix,
including their credentials and commitment level.
Name: _________________________________________
Professional services
If you have engaged the services of an accountant, lawyer, banker or other
consultants, list them here.
Name:___________________________
Company:________________________
Service:__________________________
D. Business Environment Analysis
History
If your business is already operating, summarize your business from the time it was
started to date, including work done to date and sales you have made.
Industry overview
What is the total size of your industry? (e.g., potential sales, number of
customers, etc.)
Who are the major players in your industry?
What are the critical success factors for your industry?
What kind of long term outlook does your industry have?
Are there seasonal factors that affect the industry?
Are there economic factors that affect the industry? (e.g., interest rates, taxes,
consumer spending, economic cycle, currency rates, etc.)
Are there government factors that affect the industry? (e.g., regulatory, free
trade, etc.)
Are there social factors that affect the industry? (e.g., current affairs, trends, fads,
etc.)
Are there technological factors that affect the industry? (e.g., changes that could
affect production or the nature of your product, etc.)
Are there environmental factors that affect the industry? (e.g., pollution regulations,
recycling)
Industry position
What are the strengths of your product or service?
What are the weaknesses of your product or service?
Why is your product or service unique?
How will you protect what makes your product or service unique? (e.g., patent,
trademark, copyright, etc.)
What are the barriers to entry in your industry? (e.g., technology, investment, patents
or trademarks) In other words, how easy is it for your competitors to duplicate your
unique product or service?
E. Marketing Plan
Target market
Who buys your products or services?
What is the size of your target market in dollar terms?
What is your share of this market?
What is the geographic area of your target market?
What is your competitors’ share of the market?
How do you segment your customer base?
What are the key trends or changes you anticipate within your target market for the
short and long terms?
Competitors
Who are your major competitors?
What are the strengths and weaknesses of your competitors?
What type of threat do your competitors pose to your business and its growth
potential?
Competitive advantages
Why would customers prefer your product or service to that of your competitors?
What are the specific benefits of your products or services?
How will your products or services meet the needs of your target market?
Do you have any trademarks, copyrights, licenses or guarantees associated with
your products or services?
Sales and marketing planning
What market research have you conducted? Attach detailed research to the
appendix.
How will you attract customers?
How will you advertise your products or services? (e.g. direct mail, online, radio,
newspaper, etc.)
How will you distribute your products or services? (e.g. mail, wholesaler, retail,
online, etc.)
F. Operations
Location
Where will your business operate?
How large is your office and/or factory?
What are the terms of any lease(s) related to your location?
Equipment
What are the terms of any lease(s) related to equipment you require in order to
operate your business?
Suppliers
Who are your major suppliers? If possible, include letters of intent from suppliers in
the appendix.
How easily can you switch suppliers?
What payment terms do you have with your suppliers? Include supporting
documentation in the appendix.
Do you have established Service Level Agreements with your suppliers?
Cost centres
What are your overhead costs? Include supporting documentation in the appendix.
How are overhead costs allocated?
How much do your products or services cost to provide? Include supporting
documentation in the appendix.
What are your inventory costing and control methods? Include supporting
documentation in the appendix.
Human resources
How many full-time and part-time employees do you have?
Add to appendix:
 The number of employees you will have in your first year, second year and
third year
 List titles and salaries for those employees
Sales
Do you have established sales and sales support processes?
Will you utilize a direct sales force, inside sales etc.?
How will orders be processed? How will invoices be processed?
Customer Service
How will you handle customer complaints? Do you have a customer service
telephone number for customers to contact you?
G. Financial Statements
Balance Sheet
Include the following information for the past five years broken down by year, if
available.
Prepared as of (day/month/year):
Assets
Liabilities and shareholder equity
Current assets:
Cash
Accounts receivable
Inventory
Prepaid expenses
Other
Total current assets
Current liabilities:
Short-term bank debt
Accounts payable
Income taxes payable
Long-term debt [due within one year]
Other
Total current liabilities
Fixed assets:
Land
Buildings
Equipment
Subtract accumulated depreciation
Total fixed assets
Long-term liabilities:
Long-term debt
Other liabilities
Total long-term liabilities
Intangible assets:
Goodwill
Patents
Trademarks
Other
Total intangible assets
Total assets
Shareholder equity:
Cash equity contribution
Authorized stock or share capital
Retained earnings
Total shareholder equity
Total liabilities and shareholder
equity
Income Statement
If your business has been established for some time, include the following
information for the past five years broken down by year. If your business is new
or a start-up, estimate your future income projections on a quarterly basis for the
next year.
Prepared as of (day/month/year):
Revenue or sales
Minus:
Cost of goods/services sold Gross profit margin
Minus:
Selling expenses
Office expenses
Payroll expenses
Interest expenses
General expenses
Total operating expenses
Operating profit
Minus: Business taxes payable Owners’
drawings
Depreciation
Other
Subtotal
Net income
Cash Flow Forecast
Project the following information for the next 12 months.
Prepared as of (day/month/year):
Month: _____ _____ _____ _____ _____ _____ _____, etc.
Cash receipts
Cash from sales:
Current month
Previous months (accounts receivable)
Cash equity contribution
Other cash received
Total cash receipts
Cash disbursements
Equipment (purchases, rentals, down payment on leases)
Rent
Salaries
General
Management
Materials
Inventory
Marketing and promotion
General and administrative expenses
Bank interest
Principal portion of long-term debt payments
Taxes
Other:
_______________________________
_______________________________
____________________________
Total cash disbursements
Net cash position
Monthly surplus or deficit
Cumulative cash flow or deficit to date
H. Financing Requirements
Financing needs
1
How much of your own funds have you invested in your business, to date?
2
How do you plan to further fund your business to support future growth?
3
What is the source of these funds?
4
What major business purchases or changes have you made this year, or will
you make next year?
5
Do you need to borrow money? Yes No If so, how much?
6
If you need to borrow, what type of financing do your require?
 Line of credit
 Mortgage
 Equipment loan or lease
 Other: _______________________________
7
What will your bank loan(s) be specifically used for?
8
How will you repay your loan?
9
What type of security can you offer?
 Cash
 Equipment
 GICs (Guaranteed Investment Certificate)
 Principal residence
 Savings bonds
 Leaseholds
 Owner-occupied business property
 Personal guarantee
 Other: __________________________________
Current banking arrangements
Which financial institution do you currently bank with?
Branch address
Account number(s)
Type(s) of loan(s) outstanding
Repayment terms
I. Personal Financial Statement
Assets
You
Spouse
Combined
You
Spouse
Combined
Cash
Savings and chequing account balances
GICs, Canadian Savings Bonds
Stocks, bonds, mutual funds,
RRSPs
Your residence
Other real estate
Vehicle(s)
Other:
Total assets
Liabilities
Credit card balances
Personal loans, line of credit Income
taxes owing
Residential mortgages
Other real estate mortgages
Other:
Total liabilities
Net worth
Total assets minus total liabilities
Description of assets and liabilities
What is the address of your residence
or other property?
How is it registered (e.g., with or without
your spouse)?
Make, model and year of vehicle(s)
You
Spouse
Combined
Describe your investment portfolio(s)
Provide details for mortgages or loans on—or secured by—property or other
assets:
Financial institution
Outstanding balance
Repayment terms
Provide details of the credit cards you hold and the outstanding balances on each:
Type of card
Account number
Cardholders
Outstanding balance
Employment history
Describe your most recent employment:
Company: __________________________________________
Address: __________________________________________
Phone number: _____________________
Annual income: _____________
Responsibilities: __________________________________________
Employment period: __________________________________________
J. Appendix
In addition to the items mentioned throughout this business plan manual, you
should include the following items that are applicable to your business:

Evidence of credit worthiness, which could include letters of credit from
existing suppliers or a personal credit history from a credit bureau

Current leases for facilities, equipment, cars, etc.

Letters of reference

Completed and currant contracts, including loan agreements, purchase
agreements for high-priced items, service contracts, etc.

Letters or intent from potential customers

A brand strategy and/or creative strategy – consider hiring a graphic
designer to mock up a logo, letterhead and Web page

Legal documents related to your business, including articles of
incorporation, titles, insurance policies, partnership agreements, patents,
trademarks, etc.