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A business planViews: 118
Jun 01, 2009 7:51 pm re: re: A business plan

John Snyder
Hope that this FREE Templet will be of Help. I and others have found it very beneficial, Check it out and if you can use it, feel free to do so: BUSINESS PLAN

___[Title of Business Plan--per ME #00]

___[Name your company]


Copy # ___ of ___


___[Name reviewer]


___[Name yourself]
___[Your title]


The Company
Concept and Market Niche
Marketing and Management
Financial History & Outlook

Management Philosophy
Management Team
Professional Advisors
Strategic Partners
Table of Organization
Support Staff
Sales Force
Operations & Production

The Product
Market Niche (The Customer)
Market & Competitive Analysis
Retail Outlet Strategy
Sales & Distribution Strategy
Market Development Strategy
Customer Service Strategy
Market Research & Product Development
Marketing Task Force
Critical Path

Notes & Assumptions Re: Financial Projections:
Pro Forma Income & Expense Statement
Projected Cash Flows
Pro Forma Balance Sheet & Ratios
Projected Financing Requirements

A: Financial Projections
B: Research Reports? Articles? Competitive Ads? ___?
C: Product Photos? Brochure? Ads? ___?
D: Personal Financial Statement? Resumes? ___?
E: ___?



This business plan was developed to introduce ___[Name your company] to ___[Name the firm or individual from which you are seeking capital or other resources] and assist in raising ___[equity capital? debt capital? a combination of equity and debt structure? bridge financing? resources and skills? Yours?] in the amount of $___. The funds/resources would be used to ___[start-up and become operational? build the business to the next level? acquire a business? restructure for greater efficiency and earnings? complete product development and implement the marketing plan detailed in this document? Yours?].

The Company

___[Name your company] was founded in 19___ in ___[Name state or country or province] as a ___[corporation? “S” corporation? partnership? limited partnership? sole proprietorship? Yours?]. The principal(s), ___[Name your founder(s)], own(s) ___% of the ___[original stock issue? assets?]. Other contributors hold ___% of the assets/equity.

The company is headquartered in ___[Name town or city and state or province]. The business operates/will operate as a ___[manufacturer? provider? practitioner? developer? distributor? retailer? Yours?] of ___[Define your product, service, or concept--per ME #1], which is/will be marketed under the brand name of ___[Name your product or service brand] (referred to as The Product).

The principals believe that ___[Summarize the philosophy that is demonstrated by your product/service--per ME #2].

Concept & Market Niche

The Product will satisfy market demand in ___[Identify your global, regional or local marketplace] for ___[Summarize what it is the customer needs, wants or values that your product/service uniquely satisfies--per ME #3].

The Product consists of ___[Briefly describe what you will market and why it will satisfy market demand--per ME #4].

Our market niche consists of ___[Identify your market niche--per ME #5-- after using the targeting tool in Section II--MARKETING].

This market currently is ___[without recourse to? underserved by? dissatisfied with? limited in its choice of? overcharged by? neglected by? Yours?] other companies/ providers/ brands/ alternatives.

___[Name your company]'s closest competition is ___[Identify competitors and your competitive position--per ME #6--after completing Market & Competitive Analysis in Section II].

Our market represents ___% of ___[Quantify and qualify the overall industry, sector or market in which you compete--per ME #7].

According to ___[Identify your source of market trend information--per ME #8], ___[Describe the trend--per ME #9].

Our market potential is enhanced by the existence of complementary products/services, namely ___[Identify complementary products/services and explain how they extend your opportunity--per ME #10].


Most of our sales will come from ___[Highlight your sales and distribution strategy--per ME #11-- after completing the Sales & Distribution topic in Section II--MARKETING].

We have been marketing/operating the following ___[product(s)? sizes? service(s)? retail location(s)? Yours?] since the dates shown.

A: ___[Identify product A] ___[MM/YY]
B: ___[Identify product B] ___[MM/YY]
C: ___[Identify product C] ___[MM/YY]
D: ___?

We are currently prepared/preparing to ___[complete development of? launch/release/open? Yours?] the following products/services/ locations.

A: ___[Identify product/loc. A] ___[MM/YY]
B: ___[Identify product/loc. B] ___[MM/YY]
C: ___[Identify product/loc. C] ___[MM/YY]
D: ___?

We will invest in market research and product development to continually improve The Product and launch follow-on products. Follow-ons will be introduced into developed markets before existing products enter the declining stage of their life cycles.

We expect to have ___ products/locations in the market within the next two/three/five years.

The following table shows our product development strategy in terms of product life cycles.

1 A
2 A
3 B A
4 B A
5 C B

A: ___[Identify product A]
B: ___[Identify product B]
C: ___[Identify product C]
D: ___?

The Product meets/will comply with ___[FDA? USDA? EPA? FCC? SEC? CAB? CAFE? ATF? CRTC? Yours?]. regulations/standards with respect to ___[Briefly describe the standards you must meet--per ME #12].

Due to the seasonal nature of our industry/product, we have developed strategies in our marketing plan to minimize excess inventory and maximize our selling season. We do/do not anticipate the need for short-term debt to carry us over the slack season(s).

The main thrust of our marketing plan is to ___[complete product development? complete pilot production to prove feasibility? ramp-up manufacturing? get the Product into stores? develop existing sales leads? educate the market and gain brand awareness? attract first-time customers to our establishment and convert them into steady clientele? Yours?].


The principal(s) is/are uniquely qualified to manage this opportunity, and we will seek the advice of ___[an outside board of directors? professional advisors? Yours?] to assist in management decisions and other decisions requiring specialized competence.

Our near-term business objective is to operate at a minimum loss until the business reaches ___[positive cash flow? breakeven sales? Yours?], which is projected to occur ___[in Month-3/-4/-5/? of Year-1-2-?? Yours?].

So as not to jeopardize cash flow during the infancy of the business, the principal(s) will limit/forego our own salaries.

Also, we will ___[work from home? barter services for office space? rent space in a business center, which eliminates our need for office infrastructure? subcontract manufacturing/production rather than invest in plant and equipment? operate as a virtual corporation through strategic partnerships, which will largely eliminate our need for production infrastructure and reduce our trade accounts payable? Yours?].


Looking further ahead, we envision the business as being ___[Describe your personal vision of your business in a few years--per ME #13].


We plan to reach this goal, within ___ years, by diligently pursuing our corporate mandate: ___[Define your mandate--per ME #14].


We have made good/excellent/remarkable progress over the past ___ weeks/months/years, as follows.

o Completed product development of our initial product/service line.

o Obtained/Applied for the ___[patent? manufacturing license? copyright? trademark? Yours?], which protects our exclusivity throughout the ___[Identify the market in which your proprietary concept is protected] marketplace.

o Completed focus group research to verify market demand and acceptance of our new ___[concept? features? taste? pricing? brand name? packaging? promotions? Yours?].

o Completed pilot production and verified manufacturing feasibility.

o Acquired manufacturing facilities and equipment.

o Arranged for subcontractors to manufacture our products.

o Located/Hired personnel necessary to meet the anticipated demand created by implementing our marketing plan.

o Introduced the Product at trade shows, including ___[Name trade shows].

o Demonstrated the Product to ___ prospective customers, including ___[Identify prospective customers, if relevant].

o Opened ___ store(s) in ___[Locate your sales outlet(s)] and built walk-in traffic up to ___ per week.

o Directly sold ___ units ___[through own sales force? through direct response marketing? at craft shows? with door-to-door sales? Yours?].

o Obtained verbal/signed agreements from distributors/dealers including ___[Identify distributors, retailers or other resellers] to provide retail exposure/distribution].

o Gained retail exposure at ___ stores.

o Supplied demonstration units/samples for evaluation by ___[Identify prospective customers, original equipment manufacturers or resellers].

o Launched a PR campaign including ___[Identify PR activities, per ADPUB].

o Launched an advertising campaign in ___?

o Appeared on talk shows in ___?

o Made public appearances at ___?

o Yours: ___?

We are now poised to take the following steps:

o Complete market research to verify market demand and acceptance of ___[our product concept? new features? taste? pricing? brand name? packaging? promotions? Yours?].

o Obtain/Apply for the ___[patent? manufacturing license? copyright? franchise? trademark? Yours?], which will protect our proprietary concept throughout the ___[Identify the market in which your rights are protected] marketplace.

o Complete the final phase of product development, including ___[tooling? packaging? testing? verifying manufacturing feasibility? Yours?], and advance immediately into the ___[manufacturing? production? selling? Yours?] phase of our marketing plan.

o Open/Expand/Equip our office/ showroom/ store to handle the pace and volume of business generated by implementing our marketing plan.

o Hire/Augment our team of quality and results oriented people needed to handle market demand, and train them in the use of productivity systems/selling tools.

o Put together a strategic partnership of ___[researchers? consultants? designers? engineers? subcontractors? distributors? dealers? customers?], and set up an information network that allows the partnership to function as a virtual corporation under ___[Name your company]'s management.

o Ramp-up manufacturing and produce sufficient inventory to meet initial orders/anticipated demand resulting from our planned marketing activities.

o Aggressively develop sales to ___ retail outlets via ___[direct approach by company sales personnel? manufacturers representatives? wholesale distributors? jobbers? a telemarketing campaign to the top ___ retail stores? high quality mailers to the top ___ chains? trade ads? participation at leading trade shows?].

o Attract walk-in customers and build traffic up to ___ per day/week/month.

o Launch a PR campaign including ___[Identify PR activities, per ADPUB].

o Launch an advertising campaign including ___[Identify advertising activities, per ADPUB].

o Appear on talk shows ___?

o Make personal appearances at ___?

o Get signed contracts from ___ customer accounts via ___[personal approach by sales personnel? key distributors? direct response marketing? Yours?].

o Generate sales/sales leads through the use of direct response marketing to a rented database/our existing database of ___ prospective customers.

o Launch follow-on products, including ___[Describe any planned upgrades and new products you plan to introduce, or new business activities you plan to get into].

o Establish computer-links to the top ___ customers' premises to facilitate ordering and preclude competition. This will also reduce our sales and service payroll.

o Develop export marketing opportunities by language/ climate/ export grant opportunity/Yours?.

Within ___ months/ quarters/ years, ___[Name your company] plans to:

o Launch new products/ ventures/ diversify?

o Franchise/ License manufacturing rights to our proprietary technology/ formula/ process.

o Open/Acquire additional ___[branch offices? companies? profit centers? sales outlets? service centers? clinics? Yours?] to advance the company's growth plans, at which time an initial public offering/sale of the business would be appropriate.

Financial History & Outlook

The cash/sweat equity/cash and sweat equity the principals have invested in the business during the past ___ months/years has directly contributed to the present opportunity.

Since ___[Date], we have operated ___[at a small loss? at breakeven? at a modest profit? Yours?], primarily using ___[owner's equity capital? shareholders’ loans? loans from family and friends? personal credit? capital invested by minority shareholders? asset-secured loans? receivables/inventory financing? government grants? Yours?].

(A) Total revenues from sales since 199__ has amounted to $___ on ___ orders/units. (Average revenue per sale: $___.)

(B) The company earned $___ in 199__ , $___ in 199__ , and $___ in 199__ [Add or subtract years as appropriate] on revenues of $___ , $___, and $___ respectively; average orders/units per year were ___. (Average revenue per sale: $___.)

(A) Based on detailed financial projections* (summarized below), the principals are confident that, combined with our cash contribution of $___ in the form of ___[owners’ equity investment? a shareholders’ loan with no fixed terms? Yours?], an infusion of $___ at this time would enable ___[Name your company] to ___[be viable? operate profitably? Yours?] by the second/third/fourth quarter of Year-1/by Year-2?.

*Financial projections are ___[attached as “Appendix A”? available on request?].

(A) Based on detailed financial projections* (summarized below), the principals are confident that, combined with our resources and competence, a contribution of the specified complementary resources and competence would enable the strategic partnership to operate profitably by the second/third/fourth quarter of Year-1/by Year-2.

*Financial projections are ___[attached as “Appendix A”? available on request?].

Year -1 -2 -3 -4 -5
Net sales $___
Gross profit $___
Gross margin ___%
Net income
after tax $___
Profit margin
after tax ___%
Return on
equity ___%
Return on assets ___%
Current Ratio __ : 1
Quick Ratio __ : 1
Debt-to-Equity Ratio __ : 1
Debt Ratio __ : 1

Acquisition of business $___
Professional fees, consultants $___
Marketing campaign for launch $___
Working capital (incl. cash reserve) $___
Plant and equipment $___
Yours ___? $___
Total $___

Our most likely case projections describe a vigorous growth business from which the investor can quickly derive excellent returns. The initial infusion of $___, assumed from the first month of Year-1, is based on ___ shares of capital stock/preferred stock/convertible preferred stock at $___ per share, which represents ___% of equity. Directorships are available/ optional. The infusion includes working capital and a reserve to meet unexpected demands on cash and maintain some flexibility. The principals are confident that these funds are adequate for the business to ___[reach positive cash flow in the first/ second/ third/ fourth quarter of Year-1/in Year-2? reach breakeven sales by the first/ second/ third/ fourth quarter of Year-1/in Year-2 and operate at a profit from that point forward? reach its near-/mid-term objectives, at which point a second-round infusion of $___ will boost the business to the next level? Yours?]. Cash flow should be sufficient to ___[meet the costs of an IPO? fund expansion? yield dividends? acquire businesses? Yours?] at the beginning of Year-2/-3/-4?

Our most likely case projections describe a vigorous business with excellent growth potential. The initial infusion of $___, assumed from the first month of Year-1, is based on ___[a loan and shares? a loan? convertible debentures? Yours?]. The loan/debentures can be repaid/converted to common shares in one/ two/ three years. Annual interest of ___% on the loan will be paid monthly/at that time. The investor would immediately/then own ___ shares valued at $___ per share, representing ___ percent of equity. A directorship is available/optional. The cash infusion includes working capital with a reserve to meet unexpected demands on cash and maintain some flexibility. These funds are adequate for the business to ___[reach positive cash flow in the first/ second/ third/ fourth quarter of Year-1/in Year-2? reach its near-/mid-term objectives, at which point a second-round infusion of $___ will boost the business to the next level? Yours?]. Cash flow will be sufficient to ___[pay the costs of an IPO? fund expansion? declare dividends? acquire new businesses? Yours?] at the start of Year-2/-3/-4?

Our most likely case projections describe a viable growth business which can service its obligations and quickly reward investment. The initial infusion of $___ is assumed from the first month of Year-1. It includes working capital and a reserve to meet unexpected demands on cash and maintain some flexibility. These funds are adequate for the business to ___[reach positive cash flow in the first/ second/ third/ fourth quarter of Year-1/in Year-2? reach its near-/mid-term objectives, at which point a second-round infusion of $___ will boost the business to the next level? Yours?]. Deal structure is open and negotiable.

Our most likely case projections describe a viable business fully capable of servicing its obligations, which are assumed from the first month of Year-1. The long-term component of $___, secured by ___[the tangible assets of the business? an SBA guarantee? the personal assets of the borrower? Yours?], is assumed for ___ years at approximately ___ percent interest. A short-term debt balance of $___ secured by accounts receivable /inventory is assumed for working capital, which includes a reserve to meet unexpected demands on cash. These funds are seen to be adequate for the business to ___[reach positive cash flow? reach breakeven sales? operate at a profit?] by ___[the first/ second/ third/ fourth quarter of Year-1? by Year-2? by Year-3? Yours?]. Additional long-term debt of $___ is assumed in Year-2/-3/-4? ___[to capitalize expansion? Yours?].

Our sales projections show that the strategic partnership can expect to be mutually rewarding in a fairly short time. We are open to discussion of revenue-sharing terms.


Management Philosophy

The principal(s) believe(s) that, next to our customers, information is our most valuable asset. Hence, information gathering will be Job #1 for our management team and every ___[Name your company] employee/strategic partner.

Information processing and communications systems will integrate all components of our internal and external operation.

We will share information in “Quality Circles.” Groups consisting of management, staff, strategic partners will meet regularly to review operations and discuss ways to improve the quality of our current products/services; develop new products/services; streamline our manufacturing/production/delivery processes; control costs; improve relationships with suppliers, distributors, dealers, and above all with customers.

We believe that our information-integrated operation will result in the following benefits to the company:

o Independent decision-making on the line; minimum supervision.
o Highly involved and motivated people; minimum staff turnover.
o Maximum productivity and cost efficiency.
o Maximum inventory and receivables turnovers; positive cash flow.
o “Perfect” product quality.
o Total customer satisfaction.
o Maximum profitability.

Management Team

___[Name your principals] bring excellent managerial and technical skills to this venture.

___[Summarize the curricula vitae of your principals. Indicate a balance between their managerial and technical qualifications. Highlight their academic and professional accomplishments. Give the reviewer a glimpse of your principals' personal interests and character. If appropriate, reference the way in which the principals got together--per ME #15].

Professional Advisors

To help us make the best management, marketing and money decisions, we will take expert advice from ___[professional advisors? an outside board of directors? Yours?], as follows.

Management Consultant

Financial Consultant

Marketing Consultant


Legal Counsel

Yours: ___?

Compensation will be ___[on a project basis? at hourly rates? through revenue-sharing? through equity ownership? on a salary basis? Yours?].

Strategic Partners

We plan to operate, ___[on an ongoing basis? at least initially? for special projects? Yours?], in strategic partnerships with ___[Identify types of companies needed to operate your business and market your product--professional advisors? creative consultants? engineering companies? component suppliers? manufacturing subcontractors? printers? publishers? sales representatives? agents? brokers? distributors? retailers? customers?--Yours?] .

By leveraging the resources and skills of strategic partners we will reduce our use of debt/equity capital, improve our cash flow, maximize our flexibility, and reduce product development time.

Four principles will guide our strategic partnerships.

(1) Trust. In addition to contributing physical and human resources, each partner will contribute knowledge and information to the venture. To eliminate constraint, all partners will sign non-disclosure and non-circumvent agreements.

(2) Information-Integration. A feature of our partnerships will be network communications and Quality Circles. Partners will meet regularly to measure progress and develop product and process improvements. Between meetings, partners will network via ___[telephone? fax? pagers? computer link? modem? cell-phones? notebook computers? mobile radios? Yours?].

(3) “Perfect Product Quality.” We will establish zero-defects standards on all goods or services contributed by partners as well as on promptness of delivery. Pursuing perfection will reduce rejects, save time and directly impact customer satisfaction. ___[Name your company]'s equation for success is: Zero Defects = Perfect Product Quality + Maximum Cost and Time Efficiency = Total Customer Satisfaction = Profitability.

(4) Co-destiny. Each Partner's remuneration will be tied to the success of the venture. They will agree to ___[revenue-sharing? royalty? profit-sharing? cost plus a percentage of the gross? deferred terms? Yours?]. Agreements will include an escape clause whereby we can immediately terminate the contract of any Partner that fails to honor their commitments.

___[Name your company] has formed/ is finalizing agreements with/ plans to form the following strategic partnership(s):

Title of project or alliance: ___?
Purpose of alliance: ___?
Number of Partners: ___?


Name of company:
Contribution: ___[Specify competence/resources]

Terms of arrangement: ___[per ME #16].

Table of Organization

All/Most/Some of the company's key posts have been filled. Those remaining are so indicated in the following table. Based on our business-development plans, these posts will need to be filled on the dates indicated in the table.


President (and/or) Chief Executive Officer (also Chairman of the Board?)
___[Name your top executive]
Ownership: ___%
Salary: $___

CEO TASKS: Gather, organize and direct the use of any and all information that can advance the company's success in all areas of operations.

Chief Information Officer (also Executive Vice President or Vice President and/or Director?)
Name/To be filled by ___[Date]
Ownership: ___%
Salary: $___

CIO TASKS: Implement the successful evaluation, installation, integration, and maintenance of the company's information-gathering, -processing and -communications network. Train management, staff, strategic partners, and customers in the use of our information technology.

Chief Operations Officer (also Exec. VP or VP and/or Director)
Name/To be filled by ___[Date]
Ownership: ___%
Salary: $___

TASKS: Coordinate all aspects of operations: R&D, manufacturing, production, distribution, sales, customer service.

Vice President Human Resources
Name/To be filled by ___[Date]
Ownership: ___%
Salary: $___

TASKS: Develop criteria and systems for attracting, evaluating, hiring, training, motivating, and compensating employees. Specify and manage employee benefits programs and retirement-investment funds. Organize “extra-curricular” activities. Foster good relationships with labor unions.

Vice President Public Affairs
Name/To be filled by ___[Date]
Ownership: ___%
Salary: $___

TASKS: Further the company's interests by keeping informed of all government and industry regulations affecting the company's operation. Stay in touch with regulating bodies and action groups. Work with lobbyists. Participate in industry association conferences. Keep abreast of all relevant journals, studies, and forecasts, both domestic and global.

Environmental Engineering Officer
Name/To be filled by ___[Date]
Ownership: ___%
Salary: $___

TASKS: Evaluate and recommend ways to manage waste, control energy use, reduce and reuse resources. Supervise environmental impact studies. Stay abreast of all environmental regulations impacting the company's operations.

Chief Operating Officer
Name/To be filled by ___[Date]
Ownership: ___%
Salary: $___

TASKS: Coordinate all aspects of operations: R&D, manufacturing, production, distribution, sales, customer service.


Vice President Marketing
Name/To be filled by ___[Date]
Ownership: ___%
Salary: $___

TASKS: Identify customers and distribution channels. Identify new markets, including export markets, and perform research studies to see which markets should be developed. Continually monitor the successful implementation of the company's marketing plan and adjust marketing goals and strategies as appropriate.

Vice President Market Research
Name/To be filled by ___[Date]
Ownership: ___%
Salary: $___

TASKS: Establish research parameters and institute systems for obtaining and processing market information. Develop mailing lists and manage the company's database. Continually monitor customers for information needed to improve product and service performance and improve marketing communications.

Vice President Research & Development
Name/To be filled by ___[Date]
Ownership: ___%
Salary: $___

TASKS: Continually improve products and develop follow-on products for market. Specify all aspects of product development including: materials, components, design, features and packaging. Verify manufacturing feasibility. Specify quality standards and quality control procedures.

Vice President Manufacturing (or Production)
Name/To be filled by ___[Date]
Ownership: ___%
Salary: $___

TASKS: Coordinate and supervise all aspects of the manufacturing and/or production process: plant layout, work cell design, materials sourcing, handling and just-in-time supply. Train work teams and integrate all human and technological aspects of manufacturing and/or production. Set work schedules and manage quality control.

Vice President Domestic Sales
Name/To be filled by ___[Date]
Ownership: ___%
Salary: $___

TASKS: Develop sales in the home market. Develop selling tools. Train and supervise sales personnel in the effective use of selling tools. Establish sales goals and incentives programs. Evaluate and hire manufacturers representatives. Constantly monitor customer satisfaction and supervise customer service performance. Develop systems to measure and improve sales performance.

Vice President International Sales
Name/To be filled by ___[Date]
Ownership: ___%
Salary: $___

TASKS: Identify potential export markets. Develop an export marketing plan. Manage the company's overseas branch office(s)/export agents. Keep informed of foreign market and political news. Stay abreast of trade treaties.

Advertising and Promotions Manager
Name/To be filled by ___[Date]
Ownership: ___%
Salary: $___

TASKS: Supervise the implementation of ___[Name your company]'s advertising and publicity plan. Work with marketing communications suppliers to create a corporate identity and brand image, and develop information interface with the media and our customers. Develop all relevant free and paid advertising opportunities and materials.

Technical Service Manager
Name/To be filled by ___[Date]
Ownership: ___%
Salary: $___

TASKS: Manage our customer service operation. This will include product installation, operator training, maintenance, repairs, trouble shooting on the phone, sales and shipment of spare parts, managing parts inventory, supervising returns and adjustments.


Chief Financial Officer
Name/To be filled by ___[Date]
Ownership: ___%
Salary: $___

CFO TASKS: Manage the company's financial affairs including inventory control and cash management. Set up accounting and billing procedures. Continuously track financial progress and update financial forecasts and budgets. Make sure we have the proper insurance coverage at the best price.


Initially, we will need a staff of ___ people to support our operation. Staff will be expanded only as justified by growth. Staff will be remunerated on a salary basis/ salary plus profit-sharing basis.

Profit-sharing is intended to reduce fixed costs and help to optimize productivity.

Year -1 -2 -3 -4 -5
Office manager
Yours: ___?
ANNUAL STAFF PAYROLL: $___ $___ $___ $___ $___

Direct labor is detailed in Section II of this document, under “Manufacturing.”

Labor belongs/will belong to ___[Name labor union(s)].


Sales to ___[key distributors? new accounts? OEMs? Yours?] will be handled directly by our management team.

The following table shows our projected sales force strength for five years. Sales personnel will be remunerated on the basis of ___[salary? commission? base salary plus commission? salary plus revenue-sharing? salary plus profit-sharing? Yours?].

Year -1 -2 -3 -4 -5
Technical sales
Field personnel
Yours: ___?

Average salary $___ $___ $___ $___ $___
Average commission $___ $___ $___ $___ $___

Field personnel will use their own cars instead company-leased cars.

We plan to minimize sales and service payroll by installing computer links at customers' premises within ___ months/years. This will transfer to the customer the tasks of order taking and billing/ trouble-shooting/ shipment-tracking/ Yours?.

Total projected payroll for management, operations, and sales
Year -1 2 -3 -4 -5

Payroll taxes and benefits are estimated at ___%.
Annual salary raises are estimated at ___% per year.

Operations & Production

Consistent with our management philosophy, ___[Name your company] will operate with a flat, flexible structure. Strategic decisions will be taken by the management team with the assistance of our think tank/professional advisors/strategic partners. Emphasis will be on marketing, which includes product development and production/manufacturing (our manufacturing plan is detailed at the end of Section II). Day-to-day decisions will be taken by the individuals responsible for our marketing operation, which integrates the following activities:

(1) Market Research & Product Development (R&D)

o Information gathering. We will rely on ___[focus groups? telephone surveys? in-pack questionnaires? point-of-sale interviews? Yours?] to learn what products/services and features or improvements the market wants. Based on this information, we will continually improve our products so we can introduce the right follow-ons at the right times and reduce the risk of substitute products eroding our franchise.

o Design/ engineer/ source upgrades, new products/services, and new customer support products/services.

o Verify marketing feasibility with respect to cost of manufacturing/inventory, availability of distribution channels, impact of government regulations, likelihood of competitive response, likelihood of substitute products/technologies being introduced.

o Design packaging, merchandising and promotional materials.

o Conduct focus group research to verify market acceptance of the Product and promotional strategies.

o Identify reliable sources of supply for materials/ components/ merchandise, and set up just-in-time delivery schedules with suppliers.

o Design work cells for manufacturing, including selection of production equipment

o Determine production cycles to meet market demand.

o Design sales promotions to move outdated inventory.

o Conduct market research to learn what products/services and product features or improvements the market wants

o Yours: ___?

(2) Production/Manufacturing*:

*Our manufacturing plan is detailed in Section II of this document.

o Purchase raw materials/ components/ ingredients/ merchandise.

o Hire labor/ work teams/ floor staff

o Train work teams/ floor staff

o Manufacture /Process/ Package/ Display merchandise to specifications provided by R&D.

o Prepare to distribute goods/services to the customer.

o Yours: ___?

(3) Order Fulfillment:

o Design and implement sales, merchandising and promotions strategies and campaigns.

o Develop sales to distributors/ retailers/ end users ___?

o Develop and implement customer service and aftercare programs.

o Track customer satisfaction and feed information to R&D.

o Yours: ___?

4) Total Quality Control:

o Establish zero-defect standards for all goods/services produced for sale under our brand.

o Establish achievable just-in-time schedules with suppliers.

o Design and implement training programs to facilitate quick and informed decision-making and optimize productivity.

o Develop diagnostic systems for locating and eliminating problems in the production process.

o Continuously monitor customer satisfaction and recommend improvements to product/service quality, manufacturing/processing, and customer service.

o Yours: ___?

We will use the following methods to minimize the risk of excess inventory at the end of the selling season:

o Purchase/Produce inventory on a just-in-time basis?

o Purchase inventory from suppliers that agree to take back unused/unsold stocks?

o Move excess inventory at clearance prices to discount outlets?

o Move excess inventory at clearance prices at our own factory outlet?

o Use sales promotions to move excess inventory?

o Restrict our markets to warm/cold climates where we can market year-round?

o Launch new products/ open new outlets/ diversify into other businesses that extend our seasonal opportunity?

o Yours: ___?


The Product

A photo/ technical diagram/ sample/ brochure of ___[Name your product/service] is attached in Appendix/Exhibit B/C/?.

___[Describe your product, service or merchandising concept in detail--what it is, how it is priced, what it substitutes for, why it’s needed, how it works, what its features are, how it is used, how it comes, etc.--per ME #17]

Market Niche (The Customer)


Our consumer market fits the following profile.


SEX: ___[female? male? male and female? alternative lifestyle?]

AGE: ___[pre-teen? teen? young adult? adult? seniors? age ___ - ___ years? Yours?]

OCCUPATION: ___[students? housewives? blue collar? white collar? professionals? self-employed? unemployed? retired? Yours?]

INCOME: ___[fixed income? lower-middle income? middle income? upper-middle income? wealthy? $___-$___K annually? Yours?]

EDUCATION: ___[high school? better educated? Yours?]

MARITAL STATUS: ___[single? divorced? planning marriage? newlyweds? parents? single parents? Yours?]

HOUSEHOLD: ___[no children? expecting? small children? extended family? Yours?]

DWELLING: ___[own high value home? own modest older home? highrise apartment? retirement home? Yours?]

NEIGHBORHOOD: ___[inner city? urban? suburban? rural? seaside? desert? Yours?]

FAMILY ROLE: ___[decision-maker? head of household? spouse? dependent? Yours?]


ATTITUDE/ PERSONALITY: ___[businesslike? assertive? self-confident? insecure? risk-taker? passive-conformist? free and independent? joiner? trend-setter? passive conformist? self-reliant? rebellious? iconoclastic? seeks approval? early adapter? late adapter? Yours?]

MOTIVATION TO BUY: ___[quality? price? convenience? service? security? brand recognition? exclusivity? prestige? satisfies aspirations? Yours?]

VALUES: ___[materialistic? wholesome/natural? hedonistic? nurturing? Yours?]

POLITICS: ___[liberal? moderate? conservative? independent? undecided? Yours?]

ENVIRONMENTAL CONSCIOUSNESS: ___[concerned? involved? activist? Yours?]]

WORK ETHIC: ___[diligent? loyal? overachiever? underachiever? Yours?]

CHARACTER: ___[youthful? free spirited? friendly and outgoing? fun to be with? a good friend? a concerned parent? a born leader? a loner? “good folks”? wholesome and natural? active and in control of his/her life? Yours?].


ASSOCIATIONS: ___[country club? yacht club? garden club? community council? chamber of commerce? business associations? professional associations? PTA? Yours?]

RECREATION: ___[fitness clubs? boating? fishing? team sports? golf? racquet sports? skateboarding? swimming? jogging? fitness? biking? motorbiking? equestrian? camping? hunting? surfing? surfboarding? ice sailing? roller skating? ice skating? rollerblading? skiing? snowmobiling? motorsports? flying? bowling? dancing? Yours?]

HOBBIES: ___[stamp collecting? coin collecting? cooking? sewing? handicrafts? gardening? carpentry? home decorating? antique restoration? arts? reading? model building? photography? video? arcade games? brewing or wine making? quilting? Yours?]

MEDIA HABITS: ___[View TV ___ hours per day between the hours of ___ a.m./p.m. and ___ a.m./p.m.; read business magazines such as ___?; read specialized magazines such as ___? read periodicals including ___? Yours?]

BUSINESS TRAVEL: ___[frequent flyer? occasional flyer? drives company car? drives personal car? takes the train? Yours?]

DRIVES: ___[new car? older car? American car? European car? Japanese car? luxury car? economy car? sports car? family hauler? pickup? SUV? muscle car? Yours?]

WEARS: ___[designer labels? off the rack? trendy? conservative? casual wear? jeans? Yours?]

EATS: ___[meat and potatoes? health foods? diet foods? convenience foods? junk food? gourmet foods? ethnic foods? frequents fast food restaurants? fine restaurants? Yours?]

IMBIBES: ___[tobacco? white spirits? dark spirits? imported/domestic wines? imported/domestic beers? light beers? dry beers? strong beers? alcohol-free beer? coffee? decaffeinated coffee? soft drinks? tea? sweets? Yours?]

HEALTH & BEAUTY: ___[chronic pain? anxiety? physically challenged? heavy user of: analgesics? tranquilizers? antacids? laxatives? vitamins? antihistamines? therapeutic skin care products? cosmetic skin care products? hair coloring? baby products? fragrance? Yours?]

PETS: ___[dog lovers? cat fanciers? equestrians? Yours?]

Our consumer market fits the following profile: ___[Define your customer demographically, psychographically and sociographically--per ME #21].


Our typical customer can be characterized/badged as follows:

o “Madonna” (self-determined, free and independent females age 12 to 19 years)

o “Armani” (trendy, status-conscious upper-middle-income urban and suburban males age 39 to 55)

o “L.L. Bean” (natural, quality conscious higher-income adults age 35-49)

o “Topsider” (practical, active, value-conscious sailors)

o Yours: ___?


Our target market will be businesses which meet the following criteria:

TYPE: ___[Classify targeted organization(s)--per ME #22]

SIC CODE: ___[See “SIC” in Glossary]

SIZE: ___[Indicate the size of the targeted organization--in terms of annual sales, number of employees, number of offices or factories, annual appropriations for your type of product, or annual costs if your product is intended to reduce their costs--per ME #23]

LOCATION: ___[Indicate cities or regions. If you are targeting distributors, dealers or other resellers, quantify their markets in terms of the number of customers they serve, or the population of the region they serve--per ME #24]

We will direct our approach to the following decision maker(s):

TITLE: ___[Identify the level at which you will target sales--President? CEO (Chief Executive Officer)? COO (Chief Operating Officer)? CFO (Chief Financial Officer)? CIO (Chief Information Officer)? VP Sales and Marketing? VP Engineering? VP Manufacturing? VP Human Resources? VP Research and Development? Chief Designer? Office Manager? Product Manager? Advertising & Promotions Manager? Head Buyer? Assistant Buyer? Minister of ___? Commissioner of ___? Production Manager? Purchasing Agent? Meetings & Conventions Planner? Project Director? Maintenance Engineer? Environmental Engineer? Yours?]

RESPONSIBILITIES: ___[Briefly describe decision maker’s duties-- runs the whole show? coordinates manufacturing and marketing? supervises product development? purchases office equipment? plans meetings and conventions? Yours?].

POWERS/AUTHORITY: ___[Decision maker? Influences decision making? Yours?]

SCOPE: ___[Global? Corporate? Departmental? Yours?]

PERSONAL MOTIVATION: ___[Achievement? Pride? Duty? Status? Approval? Advancement? Yours?]

PROFESSIONAL MOTIVATION: ___[Quality Enhancement? Cost Reduction? Increased Productivity? Safety? Security? Morale? Compliance with Regulations? Yours?]

LIMITATIONS: ___[Geographical? Departmental? Requires purchasing approval: specify from whom, if you know or can find out]


___[Name your company] has already begun/will immediately begin to develop sales among the following prospects.


Name of organization:
Sales potential: $___ per month/year
Name & title of person to contact:
Status: ___[Indicate whether prospect already has been contacted or is currently evaluating or using your product]


Customer case histories are attached as Appendix C/D?.

Customer Case History #1.

___[Name your customer] has been our satisfied customer/client since 19___. They first heard about us ___[through personal visits by our sales representatives? at the Name of Trade Show? through our ad in the ___[Name the media]? through PR in the ___[Name the media]? through referral by ___[Name the contact]? through our telemarketing campaign? Yours?].

They chose us primarily for reasons of ___[our unique product/service? our product quality? price? style? selection? location? service? guarantee? attitude? reputation? performance record? Yours?].

Their first order was for ___[Describe the products or services they bought and the size of the order]. Since that time they have maintained/ increased/ decreased volume, largely due to ___[cost savings? improved productivity? personal service? competitive activity? Yours?].

We are/are not this customer’s only supplier for our type of product. We estimate that their business with us accounts for ___% of their overall appropriations for similar products.

They are currently spending about $____ per week/month/quarter/year with us and our relationship is excellent/ good/ at risk.

Next year's sales goal for this client is $___. This will be achieved by ___[adding value to the Product? developing additional products? improving our service? offering additional services? installing a computer link for direct ordering and service? lowering our prices? Yours?].

Their problem(s) is/are mainly in the area(s) of ___[price? service? variety? availability? quality? value? location? competitive activity? people? Yours?]. We are addressing this situation by ___[adding value to the Product? developing additional products? improving our service? offering additional services? installing a computer link for direct ordering and service? lowering our prices? Yours?].

Market & Competitive Analysis

Our market is based on ___[Identify products/services which define your market--per ME #25].

This segment is in the introductory/growth/mature/declining phase of its life cycle.

The ___[Identify your industry or market--per ME #26] as a whole is ___[growing steadily/strong? experiencing a boom? evidencing a dramatic shift in values? enjoying a resurgence? attracting many new customers/participants? Yours?].

___[Identify your source of market information--i.e., Industry experts? Yours?] attribute this trend to ___[per ME #27].

According to industry reports, total sales in this market were $___ in 199___[Last year]. Sales are expected to ___[accelerate rapidly? rise steadily? stabilize? Yours?] over the next few years.

This trend is attributed to ___[Explain reason(s)--i.e., the fact that this is a young industry just entering its growth cycle? the vigorous economy? relaxing of trade barriers? increasing demand from developing nations? changes in tax laws? changing lifestyles? changing work styles? growing environmental concerns? aging population? technology breakthroughs? the “information superhighway”? the “Peace Dividend”? the new budget? new legislative programs? Yours?].

The market is served by a small/ growing/ large number of small /large foreign/ mature companies. The key participants are identified in the following table.

#1: ___[Name #1 competitor or competing brand]
#2: ___[Name #2 competitor or competing brand]
#3: ___[Name #3 competitor or competing brand]

Successful new participants in this market, notably ___[Name company], have demonstrated that customers will buy/switch in response to ___[better performance? innovative features/technology? better quality for the price? more responsive customer service? wider choice or variety? better guarantees/warrantees? enhanced shopping convenience? environmental values? imagery/advertising? Yours?].


All/Most/Some successful participants sell direct to the customer, via ___[a company sales force? direct response marketing? their own showrooms/stores? crafts fairs? auctions? Yours?].

All/Most/Some leading companies sell through resellers, including ___[manufacturers representatives? key distributors? wholesale distributors? jobbers? agents? brokers? in-home (“party”) sales? catalog marketers? retail outlets? value added resellers? systems integrators? Yours?].

The most successful companies sell direct/ through resellers/ through a combination of direct sales and resellers.

The following is a list of the types of distributors and retail outlets typically used in this sector.


Yours: ___?


Prices vary widely/ very little among the major participants, as shown below.

#1: $___ to $___ per ___ unit

Yours: ___?

COMPANY: ___[Name your competitor]

TARGET MARKET: ___[Identify your competitor’s target market]


POSITIONING: ___[See ME #20]

PRODUCT QUALITY: ___[Do competing brands perform better, worse, at parity with yours?]

PRICE: ___[Do competitors have a price advantage or disadvantage?]

EMPLOYEE SKILLS: ___[Are their employees better or worse trained, more or less conscientious, than yours?]

CUSTOMER SERVICE: ___[How does your competitors’ responsiveness to the customers’ needs compare with yours?]

PRODUCT RANGE: ___[Do competitors offer more or less variety than you do?]

FEATURES/ OPTIONS: ___[Do they offer more, better, different, fewer product features and options?]

FREQUENCY OF FOLLOW-ONS: ___[Do they introduce new products more or less frequently?]

PRODUCTION COSTS: ___[Do they have an advantage in terms of lower production costs--due to their location or the size of their operation?]

CONGRUENCE: ___[How closely do competing manufacturers of industrial components meet the customer’s original specifications]

AESTHETICS: ___[look, touch, feel, sound, fragrance, style, fit and finish]

ENVIRONMENTAL FRIENDLINESS: ___[Do competitors meet the customer’s, and the government’s, environmental standards?]

PAYBACK: ___[How quickly do competing products or technologies repay the customer’s financial investment--through increased productivity, reduced rejects, improved quality, time savings?]

RELIABILITY: ___[How trouble-free are competing brands? Do they deliver on time?]

DURABILITY/RETAINED VALUE: ___[How long before they need repair or replacement? How long do they hold their value? Do they have good resale value?]

EASE OF MAINTENANCE/ REPAIR/ AFTERCARE: ___[Evaluate the ease of maintaining and/or repairing product; the availability, speed, quality and friendliness of service]

DISTRIBUTION/ AVAILABILITY: ___[Do competitors have a distribution advantage or disadvantage--are their products easy or hard to find? Is it convenient for the customer to buy?]

R&D INVESTMENT: ___[Do they spend more or less money on product upgrades?]

BRAND AWARENESS/ CUSTOMER LOYALTY: ___[Are your competitors better known than you are? Must you win over their customers to succeed? (To penetrate a market dominated by famous brands, you might need to spend a lot on advertising or lower your selling price.)]

ADVERTISING & BUDGET: ___[Are competitors weak in their advertising? Can they outspend you? Will your promotions be more on target, more creative?]

Yours: ___?

Our analysis of the competition's strengths and weaknesses reveals that ___[Summarize your competitive analysis and qualify your competitive opportunity--per ME #29].


Customer service
Responsiveness to customers
Employee skills
Product range
Yours: ___?
R&D spending
Frequency of follow-ons
Environmental responsibility
Advertising Budget
Brand awareness
Yours: ___?
Financial resources
Production costs
Commitment to total quality
Commitment to customer satisfaction
Purchasing leverage
Political leverage
Yours: ___?


Our product/service/brand can be differentiated in the marketplace on the basis of ___[Define your product’s strongest point(s) of differentiation, based on the above analysis].

Our unique positioning will be: ___[Write a sentence that communicates your positioning--per ME #30].


___[Name your company]'s pricing strategy satisfies the following prerequisites:

o Optimize the perceived value of the Product, thus fostering market acceptance
o Ensure maximum gross margin.
o Foster high volume sales.
o Yours?

Our pricing structure, shown in the following table, is based on ___[direct sales to the end user? lot sales to wholesalers/retailers? over-the-counter sales? Yours?].


Product Segment A
___[Define product segment]
Average Unit Price: $___



The following table shows our sliding scale for wholesale prices
1-499 UNITS 500-2000 UNITS OVER 2000 UNITS
$___/unit $___/unit $___/unit

Our selling price will/will not include freight/S&H. This policy is/is not standard practice in our industry. Hence, our policy will ___[be consistent with the customer's expectations? exceed the customer's expectations thus adding perceived value and helping to foster market acceptance? Yours?].

Our average gross margin in Year-1 is estimated at ___%

We are confident that our pricing strategy is realistic, for the following reasons:

o We are creating a new market segment. No other companies offer similar products to ours: there is no pricing precedent. We tested a variety of price points in focus groups. The suggested price is the highest at which The Product was generally perceived to be an excellent value.

o We are introducing a new product/brand in a growing market. Growing competition is resulting in more choices for customers, and lower prices. We don't need to undersell the incumbents so much as we need to compete at the same level in order to get our share of the many new customers entering this market.

o We are entering a growing/mature/declining market. Competitors' prices range from $___ to $___ per unit/average order. The low end starts at $___ and reaches $___. The high end ranges from $___ up to $___. We feel that a price of $___ per unit/average order will give us a competitive advantage.

o We have received strong support for our price point from distributors/dealers/prospective customers.

o Yours?

o The low price allows us to penetrate this mature market by going in at $___/___% under the ___[major brand? leading competitor? industry average? Yours?].

o The low price will help to overcome retailer resistance and foster rapid distribution.

o The low price is smart, since most of our future revenue will result from sales of accessories and options. Our projected ratio of option-sales to initial sales is expected to be ___ :1 by Year-1/2/?.

o The parity price adds perceived value since our price includes ___[extra features? extended warrantee? bonus components/ quantities/ ingredients? Yours?] that competitors either do not include or charge extra for.

o Yours: ___?


A picture/sample of our package is attached as Appendix/Exhibit ?.

Our package will be a major contributor to our marketing success, in that it will help the Product sell itself at point-of-sale.

A key consideration in our package design is that it communicate the right brand image.

The image is defined as follows:

___[Define the brand or corporate image that your package must project--wholesome? pure and natural? environmentally safe? chic? leading edge? traditional? trendy? friendly? fun? familiar? unconventional? powerful? gentle? loving? caring? accessible? helpful? high value? high quality? sophisticated? naughty? Yours?]

We tested several designs in focus groups. Our current package design, shown in Appendix ?, is the clear winner in all of the key attributes.

Other considerations contributing to the package design: ___[cost? sturdiness? stackability? freshness? federally mandated information? consistency with other products in our line? flexibility in using the same photo elements to produce other promotional materials? Yours?].

Retail Outlet Strategy


Our ___[store? restaurant? service center? Yours?] occupies/will occupy ___ square feet in a ___[Describe the type of building or mall], situated in ___[an urban commercial? a suburban residential? Yours?] neighborhood. Demographically, the area is ___[upscale? blue-collar? under development? undergoing renewal? Yours?]. The location is visible. Most traffic will be walk-in/ drive-in/ by appointment only. There is ample parking in the mall/on the street. The location is close to public transportation.

The major source of traffic will be from ___[shoppers at the mall? office workers in the building? spectators at the sports arena? conventioneers at the hotel? Yours?].

Our store hours are/will be from ___ a.m. to ___ p.m. weekdays and from ___ a.m. to ___ p.m. Saturday/Sunday. Traffic flow in the immediate vicinity averages ___ per hour during the week. Traffic is heaviest from ___ a.m./p.m. to ___ p.m./a.m. on ___[Name busiest days of the week], during which we will be open.


Customers will be attracted to our store by ___[Describe the “media dimension” of your store --i.e., storefront and window display].


The floor plan is/will be designed for maximum circulation throughout the space.

Merchandise is/will be displayed in ___[Describe your merchandising system--i.e., showcases, pegboards, aisle displays, etc.].


The store will be managed by ___[Name manager]. There will be ___ people on the floor for every ___ customers.

Sales and Distribution Strategy


___[Name your company] plans to organize a regional/ national/ international network of dealerships/ franchisees. We plan to attract candidates ___[by advertising in our industry media? at trade shows? Yours?]. Territorial rights will be sold for between $___ and $___ according to population density of the territory. The franchise selling price will include ___[architectural plans? our secret recipe? marketing support? P.O.P. materials and advertising support on a cooperative basis? Yours?].


___[Name your company] has become familiar with the leading distributors serving our prospective end users throughout the ___[Identify geographic marketplace]. We hope to develop some these into key distributors. Sales to prospective distributors/key distributors will be handled directly by senior management.

(Projected sales $)
NAME Year -1 -2 -3 -4 -5

Yours: ___? $___
Yours: ___?
Yours: ___?

Distributors will learn about ___[Name your company] as follows:

o Direct approach by senior management?
o At trade shows?
o Telemarketing to set up appointments?
o PR in trade media?
o Trade ads?
o Yours: ___?

We will provide distributors with selling tools, including ___[price and specification sheets? brochures? samples? demonstrators? Yours?].

We will provide technical training to distributors and institute customer support programs which will be actively promoted in advertising. The following products are being considered:

o Financing assistance: ___[Name and explain product--per ME #31].
o Guaranteed spare parts shipment: ___[Name and explain product--per ME #32].
o Rent-to-buy plan ___[Name and explain product--per ME #33].
o Yours: ___?


Approximately ___% of ___[Name your company]'s sales will be direct to end users.

Horizontal end user accounts include ___[Identify prospective end users].

Individual accounts in this segment would have applications for a range of our products, including: ___[Identify product types, models or sizes]. They also represent potential sales of follow-on products ___[Identify follow-on types or sizes].

Vertical end users include ___[Identify prospective vertical end users].

Individual accounts in this segment have specific applications for a limited segment of our product line, including: ___[Identify product types, models or sizes].

The company has targeted the following prospects in the ___[Name geographic market(s)] market(s).
Year -1 -2 -3 -4 -5

PROSPECT NAME (Projected sales $)

Yours: ___? $___
Yours: ___?
Yours: ___?

___[Describe one or two typical applications for your product in this segment--per ME #34].

Sales to end users will be handled by ___[our senior management, our sales force? technical sales personnel? manufacturers representatives? Yours?].

Prospects will learn about ___[Name your company] as follows.

o Direct approach by ___[top management? sales personnel? manufacturers representatives? Yours?].

o PR: Advance press releases will go out to editors of ___[Name media targeted for PR]. Our press kit will include our press release as well a


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