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TKO001000Business plan and business modelTKO001000
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Table of contents
Executive Summary
Vision and Mission
Business model plan
SWOT analysis
Business Outline
Goals and Objectives
Risk Management Breakdown
Product and Services Strategy
Competitive Analysis
Financial Overview
Management and Key Personnel
Legal Matters
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Executive Summary

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The executive summary will provide readers a brief  description of the key components of your business plan. 

Business Description
Provide a brief description of your company. The opening paragraphs should introduce what you do
You would classify us as a [e.g. manufacturing, consulting, reselling, services] business.

Type of business
We are a [e.g. privately incorporated company/partnership] within the country/state of [e.g.your country and state].
Is this a new business? When was it formed?

The shareholders and directors are:

Name	Role	Share	
[name 1]	[CEO]	25%	
[name 2]	[Sales manager]	25%	

Affiliations or franchises that we are a part of
Are you part of a franchise or group?
•	[e.g. a franchisee of the xxx group/privately incorporated company/partnership]. 
•	[e.g. a franchisee of the xxx group/privately incorporated company/partnership]. 

Products and sercices
We [do/supply/sell/manufacture] the following [products/services]:
•	[e.g software for medical practices/shoes/white goods/plumbing services]. 
•	[e.g software for medical practices/shoes/white goods/plumbing services]. 

The Market
Our market can be defined as [e.g. these customers] [within this geographic area]

Our typical target customer/client type is:
Who do you want to target
•	[consumers/businesses/individuals/men/women/businesses]. 
•	[consumers/businesses/individuals/men/women/businesses]. 

Our value proposition we offer them:
What value do you provide to these customer types
•	[cheap cars/we come to your home/]. 
•	[home tutoring/]. 

How we open up channels to our market:
How do we find our customers
•	[newspaper/internet/email]. 
•	[seminars/partners]. 

Trends and influences in our market:
Current trends where is it heading?
•	[more online shopping/to more mobile devices]. 
•	[less reliance on salespeople]. 

The Competition
The following table represents our competitors in our market.

Competitor	Sales estimate	Market share	Growing	Notes	
[competitor 1]	$	0%	yes/no	[arose to this position in 3 years through ...]	
[competitor 2]	$	0%	yes/no	[]	

Competition summary
Provide a summary statement about your competition
[e.g. We can deduce from the above that [e.g. xxx is our strongest competitor and is having success in great Television advertising] .

Operations

Management
Enter the key management roles
Role	Staff member	
[CEO]	[Bill]	
[Finance Manager]	[Mary]	
[Workshop manager]	[Frank]	
add more as needed		

Staffing
Enter the critical roles and who is assigned to them
Role	Staff member	
[Production line supervisor]	[Bill]	
[Salesperson]	[Mary]	
[Machinist/Cleaner]	[Frank]	
add more as needed		

Partners, distributors and suppliers
Enter the external people and organisations that you depend upon
Name	Role or service provided	
[ABC Ltd]	[e.g.Suppliers frames for homes]	
[XYZ]	[Provides IT services]	
add more as needed		

Insurance's
Enter the critical insurance's that you depend upon
Organisation	Insurance provided	Coverage provided	
[ABC Ltd]	[e.g.Building and contents]	$	
[XYZ]	[Professional indemnity]	$	
add more as needed			

Contingency plans
Enter your contingency plans in case of various circumstances and events
Event or circumstance	Action	
[Union goes on strike]	[e.g.Hire casuals]	
[Flooding in office]	[action plan formulated, sand bags stored]	
add more as needed		

Equipment, hardware and software required
Enter the critical equipment, hardware and software required to carry out your operations
Equipment, hardware and software	Function	Cost	
[Conveyor line]	[e.g.Main process line for assembly]	$	
[Computer server and pc's]	[Database and other applications]	$	
add more as needed			

Intellectual property
Enter any intellectual property e.g. trademarks, copyrights or patents owned by the organisation
Intellectual property	Function	Owned/Under Licence	
[e.g. xxx Solar patent/Software copyright]	[e.g.Main process line for assembly]	[owned/under licence]	
[franchis licence]	[Being part of xyx franchise group]	[owned/under licence]	
add more as needed			

Inventory on hand
Enter the critical equipment, hardware and software required to carry out your operations
Inventory	Stored where	
[1000 widgets]	[e.g.Rented storage depot]	
[Chemicals]	[off site at secure depot]	
add more as needed		

Risks
Illustrate the market, pricing, product, and management risks as well as how you plan to overcome these risks.
Risks	Plan to overcome them by	
[e.g. Potential the government will cut the first home buyers grant]	[e.g. Counter this with ...]	
[e.g. Over supply of widget's causing a massive decline in pricing]	[e.g. offer add-on's to ..]	
add more as needed		

Financial summary
The financial section of the business plan will help you and potential investors (or loan officers) estimate how much money will be required and how much profit and sales will be generated.

Break - even
We estimate our break - even point to be [$xx,xxx] per month and [$xx,xxx] per year

Income - Expense Item	Year 1	Year 2	Year 3	Year 4	Year 5	
Revenue	$	$	$	$	$	
less Cost of goods sold	$	$	$	$	$	
Gross Profit	$	$	$	$	$	
Operating Costs	$	$	$	$	$	
Sales and Marketing	$	$	$	$	$	
Financial costs	$	$	$	$	$	
[..other]	$	$	$	$	$	
Total Expenses	$	$	$	$	$	
Net Profit before tax	$	$	$	$	$	
Tax	$	$	$	$	$	
Net Income After Tax	$	$	$	$	$	

Vision and Mission

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Vision
Create a vision for your business, remember vision implies an image "paint a picture"
By 20[xx] [enter-your-company-name-here] will be a highly visible company known as the best [xxx] in the [xxx] industry, serving [xxx–who you plan to serve and where, e.g. the xxx market worldwide]. We will have developed [xxx] and marketed these products in the [xxx] channel, providing a better xxx for [millions / thousands / hundreds] of xxx, becoming [a / the] leader in [xxx]. Sales will exceed $[xxx] annually, and [enter-your-company-name-here] will be actively promoting [xxx] to improve xxx for xxx. 

Mission Statement
e.g. our mission is to go where no man has gone before
The [enter-your-company-name-here] mission is to provide world-class [business xxx / consumer xxx] [product(s) / solution(s)] for millions of [xxx customers / xxx businesses] [in the xxx area or industry / statewide / nationwide / worldwide] to help them: 
•	Increase their sales and reduce costs
•	Increase their company's productivity and profitability
•	Enjoy xxx more
•	Quickly and easily xxx
•	Reduce or eliminate the need for xxx
 
[enter-your-company-name-here]'s mission is to offer innovative, practical, top-quality products that [save time / improve the way people xxx / cost less than competing products / are more readily available than xxx / meet the needs of the xxx market]. Our first responsibility is to the [xxx] who use our products and services. Our second responsibility is to our employees and our community. 

In carrying out our day-to-day business we will:
•	Treat our employees with [xxx].
•	Follow the philosophy that our customers are [xxx].
•	Contribute to the quality of life in our community by xxx.

Through its long-term commitment to this mission, [enter-your-company-name-here] will be known as a company that [xxx]. We serve our customers, vendors, and employees by offering [tools to simplify xxx projects / products that improve the quality of life for xxx / the benefits of xxx for the xxx market / a first-class resource for xxx / products that meet all the requirements of xxx / products that produce [xxx results], faster and more easily than any other product].

Business model plan

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How our business plan is structured
We use a 7 step business model outline as seen below. This outline defines our organisations simple design beginning with our customer target market through to revenues and costs to fulfill our business model.

This business model canvas as seen below is becoming a popular way for businesses and organisations of all types to build a logical model of how their business will function. It simply makes sense and will help bring a greater degree of clarity within your business operations. For more information about the business model canvass search "Business Model Generation" on the internet

Our business model canvas	
7
Key 
partners	6
Key activities	2
Value 
proposition	
4
Customer relationships	

1
Customer
segments

	5
Key resources		
3
Channels
		
8
Cost Structure	5
Income Revenue Streams	

1.	Customer segments - Who are our customers/clients?
Describe your ideal customers who are they what do they do?
We don't intend to serve all people or organisations our primary target segments are the following.
o	[Small businesses]
o	[contractors]
o	[medical professionals, families]
o	[families]

2.	Value proposition - What value do we offer them
What do you offer these customers that they would perceive as valuable
The special value we offer these customer segments are as follows:
o	[small businesses - we provide a one stop shopping for all their office supply needs]
o	[contractors - we provide documentation services to meet all their OHS needs]

3.	Channels - How do we reach our clients both new and old
What are the best methods to find these customers
We find and communicate to our customers segments by the following means:
o	[Advertising in the plumbers/medical clinicians monthly journal]
o	[Our web site, our email campaigns, direct mail etc]
o	[Sponsorship of industry related seminars]

4.	Customer Relationships - How do we nurture our relationships 
We need to communicate to our customers in a way that they appreciate
Once having secured a client we nurture this relationship via the following means;
o	[regular workshops explaining how to use our products]
o	[surveys to find out what they want form a business like ours]
o	[newsletters offering tips and suggestions]

5.	Income - Income derived from all of the above
The income we expect from our customer segments is the following:

Customer Segment	Budgeted Income	
[segment 1]	[$0.00]	
[segment 2]	[$0.00]	
		
Total Revenue over 12 months	[$0.00]	

6.	Key Resources needed
The key resources needed to deliver and fulfill our value proposition to our customer segments are the following:

Resource Type	Resource	
Physical	•	[factory with truck access]
•	[special machinery needed to complete specialised work]	
Human	•	[local people skilled in ..]
•	[at least x amount needed]	
Financial	•	[OD to maintain at least 3 months costs in case of downturn]
•	[access to x amount of capital]	
Intellectual	•	[rights to use certain software]
•	[franchise rights, patents etc]	
..add more as needed		

7.	Key activities
These are the key activities undertaken to deliver and fulfill our value proposition to our customer segments:

Activity key business area	Activity	
Manufacturing	•	[building widgets]
•	[deploying widgets]	
Marketing, Sales and Fulfillment	•	[lead generation - targeted marketing]
•	[lead conversion - getting the deal]
•	[delivery to client]	
Financial	•	[maintain balanced budget]
•	[monitor debtors]	
Human resource	•	[hiring people]
•	[training people]	
Workplace Safety	•	[training and induction]
•	[maintaining proper records]	
[..more]	[..more]	

8.	Key partnerships
We recognise that we can't do it all on our own so we have partnerships with various organisations to assist us in delivering outcomes to fulfill our value proposition. Some are formal while others are merely implied because we use their services or products. 

We have divided them into 3 areas:

Key partnerships	Who?	
Partnerships	•	[ABC ...]
•	[XYZ ..]	
Strategic alliances	•	[ABC ...]
•	[XYZ ..]	
Suppliers	•	[BBB who suppliers the steel for..]
•	[CCC who supplies the ..]	

9.	Costs structure
The costs we expect to incur in delivering on all the above is the following:

Activity key business area	Activity	
Manufacturing	[$0.00]	
Marketing, Sales and Fulfillment	[$0.00]	
Financial	[$0.00]	
Human resource	[$0.00]	
Workplace Safety	[$0.00]	
[..more]	[$0.00]	
Total	[$0.00]	

SWOT analysis

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SWOT Chart
Place results into a project action list (see below)	Strengths	Weaknesses	
Opportunities	•	[.e.g. highly skilled staff]
•	[e.g. state of the art equipment]	•	[e.g. high cost structure]
•	[e.g. high debt]
•	[..more]	
	How do we use these strengths to take advantage of these opportunities	How do we overcome these weaknesses that limit us taking advantage of these opportunities	
Threats	•	[e.g. high dollar]
•	[e.g. lack of materials]	•	[e.g. high debt]
•	[e.g. aging workforce]	
	How do we use our strengths to reduce the likelihood  and impact of these threats?	How do we overcome these weaknesses to prevent these threats becoming a reality	

Conducting a SWOT Analysis
•	Consider the business' strengths - these are the internal factors within the business that make it strong or if accessed and utilised properly will enhance the strength of the business.
•	Consider the business' weaknesses - what internally is or has the potential of holding back the business.
•	Consider Opportunities for the business - what external factors, if exploited well, will provide an opportunity for the business.
•	Consider threats to the business - what external issues, if not properly managed will lead to a threat to the business' ongoing survival and success.

Sometimes it is a good idea to categorise these SWOTS into broad subject headings and then rate them from 1 to 10 with 1 as a threat or weakness and 10 as a strength or opportunity.

Broad areas to consider include:
Strength/Weakness
•	Sales and Performance Issues
•	Personnel
•	Resources
•	Financial Issues
•	Growth Potential

Opportunities/Threats
•	Economy
•	Competition
•	Technology
•	Social Patterns
•	Government and Legal Matters

Project Action list (as a result of SWOT Analysis)
Action Item	Notes	
[e.g. item 1]	[e.g. ..]	

		

Business Outline

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The business outline provides a quick overview of your business. 

Business Description
Provide a brief description of your company. The opening paragraphs should introduce what you do
You would classify us as a [e.g. manufacturing, consulting, reselling, services] business.

Background
Where did you get started?
[e.g. The business was formed in 2010 and it first store at xx ]
Who started the business?
[e.g. XXX was started by xxx and xxx]
What opportunities did the founding owners see in the market?
[e.g. XXX and xxx saw a real need for xxx in the local area and decided to xxx]
What was there previous background or experience?
[e.g. both worked in the xxx industry]
Has the business formed through acquisition or merger of other businesses?
[e.g. In 2012 the owners merged with xxx]

Initial development
What was the original direction of the business?
[e.g. To supply xxx equipment to the xx industry]
What lessons have been learnt to this point?
[e.g. Don't try and be everything to all people, focus on your target market]
How will this affect your future direction?
[e.g. We will be more focused in our marketing]

Our operational model
Who are our primary customers?
[e.g. xxx in the xxx industry]
Will this change?
[e.g. Yes/no because xxx]
What new markets are you aiming for?
[e.g. We are looking for overseas markets to xxx]

Goals and Objectives

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Enter  your goals or objectives for the next 3 years. 
Quantitative goals
Goal or objective	Year 1	Year 2	Year 3	
Sales	$	$	$	
Sales Volume 	xx	xx	xx	
Profit	$	$	$	
Market Share	%	%	%	
Company net worth	$	$	$	
Number of employees	xx	xx	xx	

Qualitative goals
Goal or objective	Year 1	Year 2	Year 3	
Market position	[e.g considered one of the leading businesses in this area]	[e.g considered one of the leading businesses in this area]	[e.g considered one of the leading businesses in this area]	
Kind of business	[e.g. good sense of community]	[e.g. good sense of community]	[e.g. good sense of community]	
Culture	[e.g. well structured and considered a great place to work]	[e.g. well structured and considered a great place to work]	[e.g. well structured and considered a great place to work]	
Happy employees	[e.g. on a scale of 1 to 10 staff rank us at 7 and over]	[e.g. on a scale of 1 to 10 staff rank us at 7 and over]	[e.g. on a scale of 1 to 10 staff rank us at 7 and over]	

Risk Management Breakdown

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Illustrate the market, pricing, product, and management risks as well as how you plan to overcome these risks.
Human Resource Related Risks
Risks	Plan to manage/minimise/overcome them by	
Staff member lodges harassment/bully claim against another staff member	[e.g. ...]	
Union takes all staff out on strike	[e.g. ...]	
Staff member fails to work within guidelines	[e.g. ...]	
Fraudulent behaviour of one of senior partners or management	[e.g. ...]	
Employee lodges unfair dismissal action	[e.g. ...]	
add more as needed		

Market Related Risks
Risks	Plan to manage/minimise/overcome them by	
Interest rates rise causing downturn in market conditions	[e.g. ...]	
Oversupply of xxx causes prices to drop	[e.g. ...]	
New competitor offering prices under our cost	[e.g. ...]	
add more as needed		

Production Related Risks
Risks	Plan to manage/minimise/overcome them by	
Critical machinery breaks down  	[e.g. ...]	
Raw materials delayed	[e.g. ...]	
Power supply problems	[e.g. ...]	
add more as needed		

Financial Related Risks
Risks	Plan to manage/minimise/overcome them by	
Partner leaves exposing heavier debt burden on remaining owners	[e.g. ...]	
Bad debts increasing 	[e.g. ...]	
Cost of goods increase dramatically	[e.g. ...]	
add more as needed		

Natural Disaster Related Risks
Risks	Plan to manage/minimise/overcome them by	
Flooding of business	[e.g. ...]	
Fire	[e.g. ...]	
add more as needed		

Management Related Risks
Risks	Plan to manage/minimise/overcome them by	
Death of owner/partner	[e.g. ...]	
Fraudulent behaviour of one of senior partners or management	[e.g. ...]	
add more as needed		

Product and Services Strategy

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Current  Product-Service Range
Proprietary information is available to investors upon signing of a Non-Disclosure Agreement.
[enter-your-company-name-here] currently offers [product type] products for the [market segment(s)] market(s), including.
Product	Type	Price	
[product 1]	[product/ service]	[$0.00]	
[product 2]	[product/ service]	[$0.00]	
			
The first product developed by [enter-your-company-name-here] is called [product 1], and was introduced in [year introduced] in order to [describe Purpose].
Since then, we have introduced [product 2] in [year introduced], and then [brief history of your product line up to today].

Proprietary Technology / Intellectual Property
Delete this if not applicable
Our products are protected under the following:
•	[One]
•	[Two[

Licensing agreements
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For our [xxx] [technology / capability] we have [OEM / licensing / royalty] agreements with [xxx] as follows: 
•	[give general terms of agreements].

Customer Value Proposition
What is the value we offer our customers in buying or using our services
As an example what are the financial, convenience or useful features of your products or services that your targeted customer group appreciates
Product / Service	Value proposition to customer	
[on site motor vehicle repairs]	[e.g. customer has work done at home]	
[printing orders processed in 24 hours]	[e.g. quick turnaround for urgent situations]	
[return on investment]	[e.g. product pays for itself in xx days]	

Product Life Cycles
Delete this if not applicable
The life cycle for [product line name] can best be described as follows: [describe life cycle position].
Due to our recent efforts to [xxx], [Product 1] is in a strong market position. We feel that for the next [projected period of time] it will continue to [xxx] and generate profits at or above expected levels.
[Product 2] will need to be [improved / upgraded] within [xx] [months / years] in order to ensure that it does not move into the decline stage.
Overall, we conclude that our products will continue to be viable in the marketplace during the next [xx] [months / years] and that [enter-your-company-name-here]'s future planning and product-related activities will ensure a strong market presence.

Product Selection  /  Development Criteria
Delete paragraphs and sections not applicable
Because marketing is [our single largest / a large] expense and it is where [most / much] of our effort is applied, customer focus is a very important criteria. The idea is to keep our customers forever, by continually offering them a valuable product or service, thereby diminishing our costs of reaching and appealing to them. Wise product selection is therefore critical to [enter-your-company-name-here]'s success.
At [enter-your-company-name-here], we realize that development projects are growing steadily more expensive. To assure the best possible product decisions we have implemented the following criteria for evaluating and selecting projects:
[enter-your-company-name-here] provides products to assist customers with [xxx]. Our [xxx] products help reduce time, effort and expense by [x]%, and easily retail for $[x] – $[x] each.
[enter-your-company-name-here] can implement product or service using [list off-the-shelf parts]. Other parts are fabricated [internally / by [Supplier I] and [Supplier II] / offshore in our own facilities located in [country].
New laws or government programs that may impact our product include [list regulations, legislation, programs or statutes]. [enter-your-company-name-here] will comply with these regulations by [xxx].
[enter-your-company-name-here] will add new [product type(s)] to our [product line, catalog, product literature] to meet new opportunities in [xxx].
We will use outside material providers when they have [a body of knowledge / materials] useful to expedite the development of a [enter-your-company-name-here] product. Providers are selected based upon their expertise, active participation, reputation and success in their field, plus the overall quality of their [materials / workmanship]. 
When beneficial, we seek to blend the [materials / ideas / components] of several [suppliers / authors / inventors] to create an optimal hybrid product delivering the greatest benefits to our customers. These 3rd parties are generally compensated by [a lump sum cash purchase / an earn-out basis / royalty].
It is our philosophy that a product must be improved by at least [x]% every [xx] months in order to maintain its competitive position, market value and price point. We must maintain our ability to adapt as the environment, market demand, our customers' needs, and our capabilities change.

Planned Products
Delete paragraphs and sections not applicable
[enter-your-company-name-here] plans to continually develop new products and enhance existing products. In response to demonstrated market demand, new products or services being developed in the near future include [xxx], [xxx], and [xxx].
Additional concepts / plans for follow-on [next generation] products include [xxx].
[New Product 1] development [will begin / started] on [date] 20[xx]. The targeted release of [New Product 1] is for [month], [20[xx]. Development and testing will require the following resources: [list staffing, materials, tooling, capital equipment, technology, new processes]. 
The targeted release of [New Product 2] is for [month], [20[xx]. [New Product 2] development [will begin / started / is scheduled to begin] on [date] 20[xx], and will require the following resources [list staffing, materials, tooling, capital equipment, technology, new processes]. 

Research & Development
Delete paragraphs and sections not applicable
In response to demonstrated needs in our market, new [products / services to support new, existing or planned products] are being developed to include [xxx], [xxx], and [xxx]. These new [products / services] are particularly important to [describe prospective customers], as, to date, their choices have been limited to [note the alternatives to your product, or service for your product]. [Product / service] will make it possible to easily [describe what your new addition will provide for the customer]. Launches are planned for [month], 20[xx] and [month], 20[xx].
Much of the development time and effort at [enter-your-company-name-here] during the past [x] [months / years] has been spent on research and [product / process] development for [New Product x]. During 20[xx], [enter-your-company-name-here] spent approximately [x]% of sales revenues on R&D. Our plans for 20[xx] and beyond call for [a / an] [increase / decrease] in R&D spending to [x]% of sales.
[enter-your-company-name-here] is regularly examining roles that new products will play in the growth of the company. In order to promote the speed and effectiveness of our future new product development efforts, [enter-your-company-name-here] management is committed to the following: [list your commitments].
These commitments will span a period of [x] [months / years] and cost in the range of $[x].
In addition to our existing products, we [have developed / plan to introduce] [product or product-related service name] follow-on [product(s) / service(s)], with launch dates anticipated in [quarter and year]. [New Product / Service name] is a [type and nature of the product / service] and we expect [immediate / swift / global / gradual / relatively rapid / relatively slow] adoption in the [market name] market. 
[New Product / Service name] represents a / an [easily-implemented / quickly installed / low-cost / viable alternative] solution to the problem of [customer problem your product / service solves]. [Type of customers] prospective customers can now easily [what they can do with or because of your product].
Other [enter-your-company-name-here] products include [list products not yet discussed], which we expect to [note your expectations for these products in the immediate future].

Testing
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[x] products listed in the Current Product section have been tested for ability to be manufactured and [are currently ready /  by (month, 20xx) will be ready] for market
To validate manufacturing feasibility for [product name], the following [tasks / operations] were tested in our pilot production process:

Task / Operation (Sample)	% of Time	
[e.g. Product technology and methods]	xx%	
[e.g.Key parts and vendors]	xx%	
[e.g.Processing sequence and repeatability]	xx%	
[e.g.Capital equipment and vendors]	xx%	
[e.g.Specifications and control measures]	xx%	
[e.g.Production lead-time and volume standards]	xx%	
[e.g.]	xx%	

Pilot testing indicates standard unit production will be [xx] hours per [xxx] units. Processes have been validated to ensure optimally cost-effective, quality output.
Final tests were successful with regard to [all / most / etc.] evaluation criteria. Results are available on a need-to-know basis, as indicated for proprietary information. Testing was conducted during the period [month, year] through [month, year], at [xxx] facilities.
Volume testing will be accomplished by [xxx].
The following [product / process] requires additional pilot testing prior to volume testing: [list or otherwise indicate necessary tests].
These products are expected to be ready for market within [x]-[months / years], contingent upon current products generating sufficient cash flow to support additional product development.

Joint Development Efforts
Delete paragraphs and sections not applicable
[enter-your-company-name-here] [is working in / has completed] joint development efforts with [xxx] and [xxx]. Financial and technical responsibilities [are / were] also shared in a joint development project with [xxx]. A pending project may be entirely funded by [xxx], who will [hold / relinquish to us] all rights to the resulting [product / technology].
A joint development project with [xxx] has been discussed, but has not yet begun. This project will require [technical input / development efforts / research] from [xxx], [xxx], and [xxx].

Exhibits
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For additional details, the following product-related documents are included in Supporting Documents. [insert list of documents.]
•	Inventory, Production Costs & Capital Investment
•	Key factors in the [fabrication / manufacturing / assembly] process include [xxx].
•	Raw / prefabricated materials, components, and subassemblies required for production include [xxx].

Our key suppliers include
Delete paragraphs and sections not applicable
•	Supplier I	Plastic assembly
•	Supplier II	Packaging, warehousing & fulfillment
•	Supplier III Computers & Equipment

Unit price
Delete paragraphs and sections not applicable
[enter-your-company-name-here] currently builds [qty] of [product name]s.  The price for each [product a] is $x, the price of [product b] is $x, and the price of a [product c] is $x.  The prices of these [products] are not expected to increase during the three- to five-year period reflected in the financial projections.
We take advantage of economies of scale by taking advantage of [xxx].
In comparison to other companies, [enter-your-company-name-here]'s products are [reproduced / completed] quickly and economically by [describe how your process or production techniques accomplish this].
Comparative analysis shows these figures to be [higher than / lower than / in alignment with / significantly better than] competitor costs. This is due to the fact that [xxx], so our overall costs [are typically stable year round / fluctuate by season / rise and fall with the stock market / increase or decrease depending on market demand].

Unit Cost
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At [enter-your-company-name-here] we will [fabricate, assemble, subcontract, etc.] the following [key parts, components, subassemblies, etc.]:
The following breakout lists the material and labor expenses required to build a [product name]:
Process	Cost	
[e.g. Computer design and drafting (x hours of labor)]	$xx	
[e.g.Creating the jig/mold/ for the [product] (x hours of labor and $x for materials)]	$xx	
[e.g.Casting/welding/assembling  (x hours of labor and $x for materials)]	$xx	
[e.g.Shaping/finishing the [product] (x hours of labor and $x for materials)]	$xx	
[e.g.Painting and buffing the [product] (x hours of labor and $x for material) ]	$xx	
[e.g.Packing and shipping to the customer]	$xx	
[e.g.]	$xx	
Total	$xx	

Inventory costs
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The fact that [enter-your-company-name-here] custom builds [product]s to each individual's specifications means that there is no inventory of [product name]s in stock. The company does maintain the necessary inventory of [xxx] materials necessary to build and ship one week's worth of orders (approximately xxx products).
The cost of [quantity and number units] of the [xxx] materials is $xxx. The cost of maintaining this perpetual inventory is $xxx per month for space at a nearby storage facility.  

Labor costs
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[enter-your-company-name-here] has [xxx] employees, including the officers and owners of the company. The [x] [designers / assemblers / builders] [enter-your-company-name-here] has hired are each paid a salary of $xxx/year.  When [enter-your-company-name-here] obtains the financing, then [xxx] additional [designers / assemblers / builders] will be hired at  individual salaries of $xxx/ year.  Based upon previous years, [enter-your-company-name-here] has generally given [5-10]% salary increases to non-owner employees every year. We expect to continue giving a similar percentage for the next 3-5 years.

Capital equipment purchases and maintenance costs.  
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The machinery used to design and build [product name] is sufficient for current production levels.  However, if demand increases to our projected level, then [xxx] additional workstations will be needed for [xxx] new employees. The investment for the machinery and computer equipment for each workstation is $xxx.  Upon funding, this equipment will be ordered and placed into service within [xx] [days / weeks /  months].

Additional Space Requirements
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The new equipment to be purchased will require additional [office / production floor / materials storage] space. 
To meet this requirement, management is considering:
•	leasing additional space in a unit adjacent to the present facility
•	moving the entire facility to a larger facility
•	moving the administrative offices out of the current facility and leasing office space elsewhere for management and administrative staff .
The best option for [enter-your-company-name-here] is to move our offices [down the street / to Bendigo / upstairs]. The new office space is approximately xxx square feet.  The terms of the new lease are $[xxx] per month for [xx] months, and should meet our needs for at least the next [xxx] months..

Facilities
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The manufacturing facility [is / will be] located in [xxx].
This location [provides / will provide] necessary space for [initial / current] production and expansion to meet projected demand over the next [xxx] [weeks / months / quarters / years]. Our current production capacity, including internal and external production, is [xxx] units per [day / week / month / year].
Due to anticipated increased demand for up to [xxx] units per [week / month / year], additional facilities will be needed by [month], 20[xx]. Selection of the future site includes the following considerations:
The acquisition cost for land and improvements is $[xxx], which will be allocated in [xxx] increments over a period of [xxx] years. [enter-your-company-name-here] already owns / has access to / requires [xxx] of additional [land / storage space / assembly space / shipping and receiving ] and supporting staff.
Within our facility, an efficient production process hinges on proper layout of [xxx].
Equipment will be deployed as follows:This equipment is used in the processes as described and configured above to ensure that yields, lead-times, and costs stay on track to provide projected gross margins.

Staff
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Line employees include [xxx] specialists and [xxx] general production labour. Staff employees include [x]. To protect proprietary interests and information, the following policies will be enforced Packaging & Transportation
These last steps in the manufacturing process are important in establishing the desired image for the consumer. Of the standard packaging treatments available, the best choice for [enter-your-company-name-here]'s needs will be [custom boxes / bubble pack / shrink wrap / poly bags…]. Since this is a readily available form of packaging and a simple packaging process, considerable savings can be realized.
[Type of packaging] is more widely used, but in order to convey [a unique selling image / strong market position] we [are considering / will begin / have begun] using [describe the type of packaging].
Our competitors use [type of packaging] as well, but by using distinctive graphics, [photos included in Supporting Documents] we maintain our unique identity.

Fulfillment
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Fulfillment is an important part of customer satisfaction. [enter-your-company-name-here] utilizes [our xxx group / an external resource, xxx] to monitor and manage the delivery, billing, warranty service and repair of our products. This helps to ensure customer satisfaction and repeat sales.
To improve operating efficiencies, we plan to use [fulfillment company name] as our fulfillment company. Their facility is "state-of-the-art" and their customer record is excellent. By outsourcing this function, we can avoid hiring additional internal employees, or expanding our telephone and computer systems. We will also save on shipping costs due to the higher volume discounts [fulfillment company name] earns serving multiple businesses from one location.
During the past [xxx] [months / years] this [group / vendor] has demonstrated outstanding ability to [xxx]. 

Their capacity is sufficient to handle our anticipated fulfillment needs for the next [xxx] years.
Transportation will be via [truck / train / air cargo].
Comparative costs show that [xxx].

Shipping Terms
Since 20[xx], [enter-your-company-name-here] has managed it's shipping department as a profit center. [enter-your-company-name-here] products are shipped to our [distributors / end-users] via [F.O.B. Origin / F.O.B Destination / F.O.B. Buyers Factory / Other]. 

We use the following as our primary carriers:
Ground: 	[x]
Second Day: 	[x]
Overnight: 	[x]
During the last [period of time] we have taken advantage of several discount programs, including [xxx] to lower our average shipping costs by [xx]%. Future volume increases will allow us to take advantage of the following discounts, [list potential discounts], thus further lowering our average shipping costs.
Our shipping department provides other unique services, including: [List services.]

Competitive Analysis

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Conducting a competitive analysis - Understand yourself first
Business strategies can be categorized in many ways. One popular method is to assess strategies based on their degree of aggressiveness. Aggressiveness strategies are rated according to their marketing assertiveness, their risk propensity, financial leverage, product innovation, speed of decision making, amongst others. 
Typically the range of aggressiveness strategies is classified into four categories: prospector, defender, analyzer, and reactor.
Are you a prospector, defender, analyzer or a reactor?
Where do you fit in?	Characteristics	
Prospector	•	Organization seeks innovation
•	Demonstrated ability to survey dynamic environment and develop new product/services to fit the changing environment
•	Frequently and continually innovating, developing, and testing new products/services
•	Competitors are uncertain about prospector’s future strategic decisions and actions	
Defender	•	Searches for market stability
•	Produces only a limited product line for a narrow segment of total potential market
•	Seeks to protect its well-established business
•	Does whatever is necessary to aggressively prevent competitors from entering their turf
•	Can carve out and maintain niches within their industries that competitors find difficult to penetrate	
Analyzer	•	Strategy of analysis and imitation
•	Thoroughly analyzes new business ideas before deciding to jump in
•	Watches for and copies the promising successful ideas of prospectors	
Reactor	•	Lacks coherent strategic plan
•	Simply reacts to environmental changes
•	Makes strategic adjustments only when finally forced to do so
•	Unable to respond quickly to environmental changes because resources/capabilities are lacking or are not developed or exploited properly	
Where do you see your strategy	Prospector. Defender, Analyzer or Reactor	

Check list for conducting a competitive analysis
Use this as guide to conduct a competitive analysis. Check off what you see as a threat or opportunity
Customise this to your own needs
Industry - Competitive Force	
			
Current Rivalry	Threat	Opportunity	
			
Numerous competitors	X		
Few competitors		X	
Equally balanced competitors	X		
One or a few strong competitors		X	
Industry sales growth slowing	X		
Industry sales growth strong		X	
High fixed or inventory storage costs	X		
Low fixed or inventory storage costs		X	
No differentiation or no switching costs	X		
Significant differentiation or significant or switching costs		X	
Large capacity increments required	X		
Minimal capacity increments required		X	
Diverse competitors	X		
Similar competitors		X	
High strategic stakes	X		
Low strategic stakes		X	
High exit barriers	X		
Minimal exit barriers		X	

Potential Entrants	Threat	Opportunity	
Significant economies of scale		X	
No or low economies of scale	X		
Cost disadvantages from other aspects		X	
No other potential cost disadvantages	X		
Strong product differentiation		X	
Weak product differentiation	X		
Huge capital requirements		X	
Minimal capital requirements	X		
Significant switching costs		X	
Minimal switching costs	X		
Controlled access to distribution channels		X	
Open access to distribution channels	X		
Government policy protection		X	
No government policy protection	X		

Bargaining Power of Buyers	Threat	Opportunity	
Buyer purchases large volumes	X		
Buyer purchases small volumes		X	
Products purchased are significant part of buyer’s cost	X		
Products purchased aren’t significant part of buyer’s cost		X	
Products purchased are standard or undifferentiated	X		
Products purchased are highly differentiated and unique		X	
Buyer faces few switching costs	X		
Buyer faces significant switching costs		X	
Buyer’s profits are low	X		
Buyer’s profits are strong		X	
Buyer has ability to manufacture products being purchased	X		
Buyer doesn’t have ability to manufacture products		X	
Industry’s products aren’t important to quality of buyer’s products	X		
Industry’s products are important to quality of buyer’s products		X	
Buyers have full information	X		
Buyers have limited information		X	

Bargaining Power of Suppliers	Threat	Opportunity	
Supplying industry has few companies and is more concentrated	X		
Supplying industry has many companies and is fragmented		X	
There are no substitute products for supplier’s products	X		
There are substitute products for supplier’s products		X	
Industry being supplied is not an important customer	X		
Industry being supplied is an important customer		X	
Supplier’s product is an important input to industry	X		
Supplier’s product is not an important input to industry		X	
Supplier’s products are differentiated	X		
Supplier’s products aren’t differentiated		X	
There are significant switching costs in supplier’s products	X		
There are minimal switching costs in supplier’s products		X	
Supplier has ability to do what buying industry does	X		
Supplier doesn’t have ability to do what buying industry does		X	

Substitute Products	Threat	Opportunity	
There are few good substitutes	X		
There are several not-so-good substitutes	X		
There are no good substitutes		X	

Conclusions and summary
[Enter your conclusions here]

Financial Overview

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Financial Overview
The financial section of the business plan will help you and potential investors (or loan officers) estimate how much money will be required and how much profit and sales will be generated.

Break - even
We estimate our break - even point to be [$xx,xxx] per month and [$xx,xxx] per year

Income - Expense Item	Year 1	Year 2	Year 3	Year 4	Year 5	
Revenue	$	$	$	$	$	
less Cost of goods sold	$	$	$	$	$	
Gross Profit	$	$	$	$	$	
Operating Costs	$	$	$	$	$	
Sales and Marketing	$	$	$	$	$	
Financial costs	$	$	$	$	$	
[..other]	$	$	$	$	$	
Total Expenses	$	$	$	$	$	
Net Profit before tax	$	$	$	$	$	
Tax	$	$	$	$	$	
Net Income After Tax	$	$	$	$	$	

Business Assets/Liabilities	Year 1	Year 2	Year 3	Year 4	Year 5	
Assets						
Tangible	$	$	$	$	$	
Non-Tangible	$	$	$	$	$	
Total Assets	$	$	$	$	$	
Liabilities						
Loans	$	$	$	$	$	
Overdraft	$	$	$	$	$	
Creditors	$	$	$	$	$	
Total Liabilities	$	$	$	$	$	
Net Assets	$	$	$	$	$	

Management and Key Personnel

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Management
Enter the key management roles
Role	Staff member	
[CEO]	[Bill]	
[Finance Manager]	[Mary]	
[Workshop manager]	[Frank]	
add more as needed		

Staffing
Enter the critical roles and who is assigned to them
Role	Staff member	
[Production line supervisor]	[Bill]	
[Salesperson]	[Mary]	
[Machinist/Cleaner]	[Frank]	
add more as needed		

Partners, distributors and suppliers
Enter the external people and organisations that you depend upon
Name	Role or service provided	
[ABC Ltd]	[e.g.Suppliers frames for homes]	
[XYZ]	[Provides IT services]	
add more as needed		

Legal Matters

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Type of business
We are a [e.g. privately incorporated company/partnership] within the country/state of [e.g.your country and state].
Is this a new business? When was it formed?

The shareholders and directors are:
Name	Role	Share	
[name 1]	[CEO]	25%	
[name 2]	[Sales manager]	25%	

Affiliations or franchises that we are a part of
Are you part of a franchise or group?
•	[e.g. a franchisee of the xxx group/privately incorporated company/partnership]. 
•	[e.g. a franchisee of the xxx group/privately incorporated company/partnership]. 

Cover Structure, legal exposures and any other compliance and legal requirements etc of the business