Skeleton Business Plan Outline

Note for Users: This project and its content were completed in 1997. At this time, there are no existing plans to update the materials.

1. Cover:

2. Title Page:

3. Executive Summary:

A. What is the purpose of this plan?

B. What business structure have you chosen (i.e., sole proprietorship, partnership, corporation, S corporation)?

C. Who are the principals and what are their proportions of ownership?

D. Why will the business be successful?

For a financing proposal:

E. Who is requesting the funds and how much is needed?

F. What will the money be used for?

G. How will the funds be repaid?

H. What collateral will be offered to secure the loan?

I. Why does the loan or an investment make sense?

4. Table of Contents:

5. Description of the Business:

A. What are the specific goals aimed at overall purposes? (VEM, pg. 19)

B. What business are you in?

C. What market do you intend to serve? What is the total market and what is your expected share?

D. How can you serve the market better than your competition?

E. Present status of business: start-up, expansion of going concern, or take-over of an existing business? F. If you will be doing any contract work, what are the terms? Reference any firm contract and include it as a supporting document.

G. Do you have letters of intent from prospective suppliers?

For an existing business:

H. What is the history of the business?

I. Why does the owner wish to sell at this time?

J. If the business is going downhill, why? How can it turn around?

K. How will your management make the business more profitable?

L. What changes do you plan to make in the business?

M. What is the purchase price formula, i.e., how much are they asking for the business?

6. Business Location:

A. What is your business address and why did you choose that location?

B. Will the building be leased or owned?

C. Describe the appearance of the building. (VEM, pg. 37)

D. Describe the neighborhood (e.g., stable, changing, improving, deteriorating, etc.).

E. What other kinds of businesses are in the neighborhood?

F. How much can your business expand before you will be forced to move or add on to the present building?

7. Licenses and Permits:

A. Is your business name registered with the Secretary of State?

B. State how local-zoning regulations will affect you.

C. What other licenses or permits will you be required to obtain?

8. Management:

A. What is your business and management experience? B. What education have you had, including both formal and informal courses, which contributes to your managerial abilities?

C. Are you physically suited to the job?

D. Do you have operational and/or managerial experience in this type of business?

E. Describe your organizational structure, i.e., who will do what in your business? Include an organizational chart if necessary.

F. List proposed salaries and wages.

G. What other management resources will be available (accountant, lawyer, Small Business Development Center)?

9. Personnel: Write a paragraph or two about your personnel needs.

A. What are your anticipated personnel needs?

B. What skills must your employees have?

C. Can you use part-time help to meet changing business volume?

D. Will you have to train people, and at what cost?

10. Insurance: Describe your potential business risks and tell what insurance coverage you will purchase to protect yourself.

11. Marketing Strategy:

A. Pricing Strategy

B. Promotional Strategy

C. Customer Service

12. The Market: Explain, in general terms, who needs your product or service, and how you plan to reach them.

A. Who exactly is your market?

B. What is the present size and growth potential of the market?

C. What percentage of the market will you have now and in the future?

D. How will you attract and keep your segment of the market?

E. What features or services will you offer that will justify the price?

13. Competition: Briefly describe your competition and tell how their operations are similar and dissimilar to yours. What is your unique selling proposition and how will you use it to control your market share?

A. Identify your three major competitors. (VEM, pg. 39)

B. Compare your business to the competition. (VEM, pg. 39)

C. List the changes that will improve your competitive position. (VEM, pg. 39)

14. Financial Data:

A. Source and application of funds statement

B. Capital equipment list

C. Current balance sheet and operating statement (less than 90 days old)

D. Break-even analysis

E. Profit and loss

F. Cash flow projections

G. Projected balance sheet

H. Pricing Breakdown

I. Personal financial statement for all principles (SBA)

For an existing business:

J. Profit and loss statements

K. Balance sheets and/or tax returns for past three years

15. Supporting Documents:

A. Personal resumes for all principals

B. Letters of reference

C. Letters of intent from prospective suppliers or customers

D. Copies of all leases, contracts or agreements, deeds or other legal documents

E. Any other information that might help your cause or answer potential questions

Expanded Outline
Appendix A: Business Plan Form
Appendix B: Competitor Information Forms
Appendix C: Sources and Applications for Funding Form

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