Business Planning
    Objectives of the Course
    Steps to Organizing and Developing Your Business
    The Purpose of Writing a Business Plan
    Key Points to Remember
    Vision/Mission Statement
    Analysis of Personal Strengths and Weaknesses
    Assessment of Personal Finances and Startup Costs
          Personal Finanaces
          Startup Costs
    Start of Your Business Plan
    Table of Contents
    Notes
    Executive Summary
    Operating Plan
            Analysis of Product
            Analysis of Services
            Capital Equipment List
    Notes
    Marketing Plan
    Merchandising/Sale Promotion
            Product Pricing Model
            Breakeven Analysis
    Example of Breakeven
    Example of Sales Goals
    Example of Goals vs. Actual
          Sample Breakeven Analysis
            Market Position and Annual Industry Sales
    Management Plan Sample to be Used in Classroom
    Staffing and Compensation
          Staffing Plan
            Sample Staffing Plan
    Notes
    Preparing the Loan Proposal
    Example of Financial Plan Format
    Example of Income Statement
    Long Range Plan
    Example
         Objectives, Responsibilities and Targets
            Priorities, Objectives, Responsibilities and Targets
    Succession Plan
    Appendix
    Key Terms and Concepts
    Review
    Test On Business Planning
 



 
 
 
 

Business Planning

The purpose of this program segment is to review basic business plan components Rents and how to develop one-month, one-year and five-year business plans. Other topics include mission, values, goals, objectives, strategies, succession planning, selling the business and employee development plans. It is said that 80 percent of business failures could have been avoided by proper planning. Business plans are comprehensive, written plans of action that establish financial or operational guidelines, along with objectives to chart the direction of a business. They also explain what a business is all about to employees, sources of capital and others.
Return To The Table Of Contents


Objectives of the Course

As a result of this course you will be able to:

  1. - Operations
  2. - Management
  3. - Financial
  4. - Long Range
  5. - Succession
Return To The Table Of Contents

Steps to Organizing and Developing Your Business

  1. Determine type of business you wish to start or maintain.
  2. Assess personal strengths, weaknesses, skills, abilities, education, and motivation for starting or maintaining a business.
  3. Assess personal finances and financing needed for business operating costs. Research SBA and other small business loan programs available.
  4. Locate the Standard Industrial Classification (SIC) Code for your business and industry by visiting your local library, chamber of commerce, business development corporation, trade group of professional association, etc.
  5. Research your industry to assess market potential.
  6. Research Federal and state licensing requirements for starting and operating your business.
  7. Determine business name and legal structure.
  8. If necessary, apply for fictitious name if you are not using your own name.
  9. Determine business location. Make sure the area (this includes your home) is zoned for the type of business you wish to start.
  10. If necessary, apply for business license.
  11. Choose a banking institution if you don't already have one.
  12. Research insurance and bonding requirements for providing your product and service.
  13. Obtain information on state taxes and state employer identification number.
  14. Obtain information on Federal taxes and Federal employer identification number.
  15. Prepare a business Plan.
Return To The Table Of Contents

The Purpose of Writing a Business Plan...

A properly prepared business plan is essentially a management and operating tool. ft should clearly define professional and personal objectives (are you starting a business, expanding a business, purchasing and existing business, or borrowing money), and strategies (what are your goals, what tasks will accomplish these goals, what is the proposed schedule, what responsibilities must be taken and by whom), and should be presented in quantifiable terms.

The purpose of writing a business plan is to:

  1. Provide you with a road map for working through all steps necessary to build a successful enterprise;
  2. Provide lenders and investors with a detailed plan of your business for the purpose of securing financing;
  3. Demonstrate to lenders and investors that you have thorough knowledge and understanding of your business;
  4. Prepare forecasts and budgets for determining whether starting or expanding this type of business will be profitable; and
  5. Assist you in setting and attaining goals, maintaining control, monitoring progress, and planning for future.
But whether you hire a consultant or write it yourself, your completed business plan will tell you definitively:
  1. What product(s)/service(s) you will offer and at what price;
  2. Who your customers are and how you will reach them;
  3. What your customers' needs and desires are and how they are currently being met;
  4. How your product(s)/service(s) better meet the needs and desires of your customer;
  5. What your manpower needs will be;
  6. How much money to borrow and how it will be repaid; and
  7. Where your business is headed and how it will get there.
Return To The Table Of Contents
 
 

Key Points to Remember...

Each state of development of your business plan must be carefully planned and realistic goals set. Make sure that all goals and objectives for growth and expansion are measurable and attainable. You must always be able to develop and assign tasks, meet deadlines, and monitor progress. Business failure inevitably results when:

  1. Strategies for operating the business are incorrectly defined;
  2. Details of implementing business strategies are lacking or unclear;
  3. Goals and objectives are not stated in quantifiable terms;
  4. Commitment of owners and key persons is insufficient for succeeding;
  5. Owners and employees of the organization do not share a common view or philosophy of the organization's purpose or future.
Return To The Table Of Contents


Vision/Mission Statement

Mission Statement

The purpose of the mission statement is to state the company's goals, commitment, and philosophy. An example of a mission statement would be:

"The mission of CAREERTEMPS Temporary Employment Agency is to place the most qualified individuals in temporary positions as required for each client we serve."
 

Return To The Table Of Contents
 

Analysis of Personal Strengths and Weaknesses


 
Name __________________________________________________________
Area of Skill Strengths Weaknesses
Technical Skills    
  • Computers 
    
  • Writing 
    
  • Analytical 
    
  • Administrative
    
  • Financial
    
  • Reporting 
    
  • Presentations
    
Social Skills     
  • Personality
    
  • Communications
    
  • Public Speaking 
    
  • Telephone
    
  • Person-to-person
    
  • Marketing/PR 
    
  • Personal interests
    
Management Skills    
  • Organizational 
    
  • Teaching/training 
    
  • Decision making
    
  • Delegating
    
Education     
  • Degree(s)
    
  • Certifications 
    
  • Licensing 
    
Experience     
  • Number of years
    
  • Type of experience
    

Return To The Table Of Contents

Assessment of Personal Finances and Startup Costs


 
 
Personal Finances*
for the month of ____________
Income and cash on hand
  • Wages
  • Savings
 
Total income and cash on hand 
Expenses
Rent
Utilities (gas, electricity, cable)
Telephone (resident)
  • Cellular, pager
Groceries
Insurance
  • Life
  • Medical/dental
  • Auto
 
Clothing/laundry
Education
  • Tuition (college, children's)
  • Daycare 
Transportation
  • Gas and oil
  • Bus/trolley passes Auto repairs
Installments
  • Credit cards
  • Loans
  • Taxes due Incidentals
 
Total monthly expenses
Total monthly income/cash less expenses
Total monthly disposable income (deficit)

*Use FasTrax - Personal Profit Demand

Return To The Table Of Contents
 

Startup Costs
Expenses
Rent
Utilities (gas, electricity) Telephone (business
  • Cellular, pager
  • Page
Licenses and fees Insurance
  • Life/medical/dental
  • Medical/dental
  • Business (Gen. Lab., WIC)
  • Bonding 
Employee salaries 
Taxes 
Equipment 
Inventory 
Raw materials 
Stationery 
Office supplies 
Furniture 
Advertising and promotion 
Books and training 
Maintenance Incidentals (leases, etc.)
Total start cost
Total disposable income
Total disposable income less startup cost

Return To The Table Of Contents

Start of Your Business Plan


Sample Business Plan

______________________________________________________________________
(Company Name)
 
 

______________________________________________________________________
(Street or P.O. Box)
 
 

______________________________________________________________________
(City, State, Zip)
 
 

______________________________________________________________________
(Phone, include area code)

(Fax)
 
 

______________________________________________________________________
(E-mail, Web Site Address)
 
 

Place logo or other

Identification information here

BUSINESS PLAN
 
 

______________________________________________________________________
Date (Month/Year)
 
 

Prepared by
 
 

______________________________________________________________________
Name
Title

This business plan is the property of_________________ ft contains confidential and proprietary information, and is not to be reproduced at all or in part. Also, may not be discussed with anyone not authorized by ____________________________, and must be returned upon request.
Return To The Table Of Contents
 

Table of Contents


 

Executive Summary …………………………………………………..

Operating Plan …………………………………………………..

Marketing Plan …………………………………………………..

Management Plan …………………………………………………..

Financial Plan …………………………………………………..

Long-Range Plan …………………………………………………..

Succession Plan …………………………………………………..

Appendix …………………………………………………..

Glossary of Terms …………………………………………………..

Return To The Table Of Contents

Notes:

Return To The Table Of Contents
 

Executive Summary


Sample to be used in Classroom

(To be completed by Owner)
 

Mission Statement
 

Objective
 

The Business
 

Operating Plan
 

Marketing Plan
 

Management Plan
 

Financial Plan
 

Long Range Plan
 

Succession Plan

Return To The Table Of Contents
 

Operating Plan


Sample to be used in Classroom

Product/Service
 
 

Facilities
 
 

Administrative Functions
 
 

Information Management Systems (IMS) (software)
 
 

Expansion and Improvement
 
 
 

Return To The Table Of Contents
 
 

_________________________________
(Company name)

Analysis of Product
Strengths and Weaknesses

Product name
Company name Competitor #1 Competitor #2 Competitor #3
Equipment        
Production         
Benefits         
Availability         
Pricing         
Promotion         

 
 

________________Example_________________
(Company name)

Analysis of Product
Strengths and Weaknesses

Product name
Company name Competitor #1 Competitor #2 Competitor #3
Equipment Strong Strong Avg Weak
Production Strong Strong Strong Avg
Benefits Strong Strong Strong Weak
Availability Strong Strong Strong Weak
Pricing Competitive Competitive Weak Strong
Promotion Avg Avg Strong Weak

 

Return To The Table Of Contents

_________________________________
(Company name)

Analysis of Services
Strengths and Weaknesses

Service Name
Company Name Competitor #1 Competitor #2 Competitor #3
Systems and Controls         
Benefits         
Pricing         
Promotion         
Delivery         

 
 
 

_____________Example_____________
(Company name)

Analysis of Services
Strengths and Weaknesses


Service Name
  Company Name Competitor #1 Competitor #2 Competitor #3
Systems and Controls Strong
W/franchise
Support		 Weak Strong Weak
Benefits No Benefits Average Strong None
Pricing Competitive Competitive Competitive Low
Promotion weak Strong strong Weak
Delivery Average Strong strong Weak

Return To The Table Of Contents

_______________________
(Company name)

Capital Equipment List

Equipment Name Supplier Qty Purchase Price Value of Deprec. Market Value
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
      $ $ $
Return To The Table Of Contents
 

Notes:

Return To The Table Of Contents

Marketing Plan

Sample to be used in Classroom

Marketing Objective
 
 

Industry Outlook
 
 

Sales Objective
 
 

Advertising and Promotion
 
 

Competition
 
 

Customer Service
 
 

Service Contracts
 
 

Return To The Table Of Contents

Merchandising/Sale Promotion

Gasoline

Identify two specific goals to increase gasoline volume and gross profit and the action steps to accomplish your goals.

  1. Goal:

    2.  

     

    Actions:
     
     

  2. Goal:


        Actions:
 
 

Food Shop

Identify two specific goals to increase Food Shop sales and gross profit and the action steps to accomplish your goals.

  1. Goal:

    2.  

     

    Actions:
     
     

  2. Goal:
 
        Actions:
 
 

Full Facility

Identify two specific goals to increase Full Facility sales and gross profit and the action steps to accomplish your goals.

  1. Goal:

    2.  

     

    Actions:
     
     

  2. Goal:


        Actions:
 
 
 

Describe your 12-month advertising and promotional plans. Be specific in your, plans.

Advertising and promotion goals:
 
 

Plan specifics:
 
 

Customer Focus

Describe your station policy on Quality Customer Service. Be specific in describing what you will do to provide your customers with outstanding quality products and services.
 
 
 
 

Return To The Table Of Contents

___________________________________
(Company name)

Product and Service
Pricing Models

Product Pricing Model


Cost of goods sold 
$25,000
Operating expenses
$18,000
Gross Profit percentage
%
Sales 
$_____

Return To The Table Of Contents
 


___________________________
(Company name)

Breakeven Analysis*


+ Debt Servicing $
+ Additional Profit $
= Personal Profit Demand $
+ Operating Expenses Both Fixed and Variable $
= Total Profit Demand $
-Gasoline Volume / by $
Pool margin
= Profit Demand After Gasoline $
/ Gross Profit $
= Sale Required

*Use FasTrax for this exercise.
 

Return To The Table Of Contents
 

Example of Breakeven


 
Net Profit Goal January 1
Pers. Profit Demand (Ex Notes) $ 5,000
Business Notes (Principal Only) $ 1,000
Additional Profit Desired $ 4,000
Total Net Profit Desired $ 10,000
Itemized Operating Budget
Employee Wages $ 7,200
Officer’s Salaries  
Payroll Taxes $ 1,080
Licenses & Taxes $ 100
Rent $ 5,000
Maintenance & Repair $ 1,100
Insurance $ 500
Special Services/Legal $ 275
Interest & Bank Charges $ 100
Vehicle Insurance  
Supplies $ 300
Advertising/Promotions $ 300
Vehicle Expense  
Utilities & Phone $ 1,200
Cash Shortage $ 50
Discounts/Refunds $ 50
Bad Debts  
Equipment Lease  
Small Tools  
Equipment Depreciation $ 250
Vehicle Deprecation  
Credit Card Fees $ 1,000
Laundry/Uniforms $ 200
Travel/Entertainment $ 50
Training Expense $ 275
Contract Services  
Car Wash Chemical & Supplies $ 1,00
Other 2  
Other 3  
Other 4  
Total Operating Budget   $ 20,030
Gross Profit Demand   $ 30,030
Less Gasoline Gross Profit    
Total Gallons Projected 150,000  
C.P.G. (Pool Margin) $ 0.077  
Total   $ 11,550
Gross Profit Required from S.O.T.G.   $ 18,480
Projected Wash Sales $ 6,000  
Wash Gross Profit %  100 %  
Total Projected Wash Gross Profit $   $ 6,000
G.P. Required from Store   $ 12,480
C-Store Gross Profit % 31 %  
C-Store Sales Goal   $ 40,258

Return To The Table Of Contents

Example of Sales Goals


 
Days Open This Month: 30
Monthly Wash Sales Plan
Wash Departments
Mix %
Monthly $
Daily $
Number of Employees
Monthly $ By Empl.
Daily $ By Empl.
G.P. % Goals
Regular Wash
17 %
$ 1,000
$ 33
      
100 %
Deluxe Wash
20 %
$ 1,200
$ 40
      
100 %
Premium Wash
15 %
$ 900
$ 30
      
100 %
Extra Wash
25 %
$ 1,500
$ 50
      
100 %
Super Wash
7 %
$ 400
$ 13
      
100 %
Plus! Wash
17 %
$ 1,000
$ 33
      
100 %
Other 1              
Other 2              
Other 3              
Totals
100 %
$ 6,000
        
100 %
Goal
100 %
$ 6,000
        
100 %
Difference              
Days Open This Month: 30
Monthly C-Store Sales Plan
C-Store Sales Departments
Mix %
Monthly $
Daily $
Shift 1 40 %
Shift 2 50 %
Shift 3 10 %
Shift 4
G.P. % Goals
Cigarettes
25 %
$ 10,075
$ 336
$ 134
$ 168
$ 34
  
18 %
Tobacco
3 %
$ 1,119
$ 37
$ 15
$ 19
$ 4
  
34 %
Soft Drinks
11 %
$ 4,356
$ 145
$ 58
$ 73
$ 15
  
32 %
Beer/Wine
10 %
$ 4,067
$ 136
$ 54
$ 68
$ 14
  
24 %
Candy
7 %
$ 2,768
$ 92
$ 37
$ 46
$ 9
  
32 %
Snacks
8 %
$ 3,125
$ 104
$ 42
$ 52
$ 10
  
28 %
Fountain
5 %
$ 2,000
$ 67
$ 27
$ 33
$ 7
  
70 %
Snack Bar
12 %
$ 4,675
$ 156
$ 62
$ 78
$ 16
  
55 %
Groceries
5 %
$ 2,200
$ 73
$ 29
$ 37
$ 7
  
30 %
Milk/Dairy
2 %
$ 987
$ 33
$ 13
$ 16
$ 3
  
8 %
Auto/Oil
4 %
$ 1,456
$ 49
$ 19
$ 24
$ 5
  
33 %
H.B.A
2 %
$ 1,000
$ 33
$ 13
$ 17
$ 3
  
35 %
Juice/Water
6 %