The Building Blocks of a Business Plan

(Sustainability Emphasis Not Yet Included)

Mission, Goals, Objectives

Overview
1. Define the purpose of your business plan. Who will read it? What
do you hope to accomplish with it?
2. What business are you in? What are your key products and
services?
3. What market do you believe exists? Long range outlook for your
market? Is the market sustainable, in that it will go on forever? Is
the market considered responsible and positive by people?
4. How do you operate your business? Who is involved? How is time
spent?
5. In what stage of development is your business?
6. Is growth a part of your plan? If so, describe.

Mission Statement
7. List the values you would like your business to be known for, now
and in the future. Write a values statement.
8. What is your vision for the future of your business?
9. What is the purpose of your business, internally and externally?
10. Use your answers to 7, 8 and 9 above to develop a polished
business mission statement.

Goals and Objectives

11.Make a list of your business visions and dreams. Then figure the
various tasks needed to complete each. Estimate the time
needed to complete each. Then divide them into short and long
term goals. (Short and long term goal worksheets.)
12.How will you institute a periodic review of business goals and
productivity?

Background Info:
13.What industry are you in and how has the industry developed?
What has been the industry’s growth pattern? What economy are
we currently in?
14.How do small firms operate within your industry? Describe the
industry’s normal way of doing business: how it operates,
production, marketing and distribution methods, standards. Is
what the industry normally does sustainable?
15.What are the current trends of the industry your business is in?
What is the industry’s growth pattern, niche markets, etc.? What
is the size of the market? What are the current sales costs and
profit margins? Is the industry market currently up or down?
 What are current profit margins? How is the competition level?
16.What industry trends are predicted in the future? How will
current and future technology impact the industry? What are the
positive and negative effects of government regulations?
17.Provide a brief history of your business, even if it is a start-up
company. When was it founded? Why was it started? By whom?
What has been its profitability and growth patterns? How has the
business changed over time?
18.How do your products and services (your business) fit into the
industry? Relate the fit to current and future trends.

Organizational Matters

1. Is your business a sole proprietorship, partnership, corporation,

LLC? Why did you choose this structure? Describe the
advantages and disadvantages. Did you consult with an
accountant? An attorney?
2. Describe the ownership of the business. Who are the owners?
What is their financial share of ownership?

Management Team.
3. Identify all company positions. What are their respective job
descriptions/duties, required skills? Are they part time, full time,
seasonal, interns, etc. Chart each position’s basic or special
personnel needs.
4. Identify managers and others with supervisory responsibility.
5. Assign the following necessary business skills to the existing
positions above. If any is not assigned, address how this business
need will be provided:
a. Accounting and taxes
b. Planning
c. Organizing
d. Financial management
e. People management
f. Time management
g. Sales
h. Marketing
i. Promotion
j. Pricing
k. Decision making
l. Cost control
m. Personnel/Human resources
n. Credit and collections
o. Sustainability/Energy efficiency
p. Staff ecologist
6. Identify outside advisors who will consult or be paid to fill in any
 gaps in the business skills above.
7. From where will you obtain the employees? Do you anticipate
having any difficulty attracting the type of personnel you
require? What will be your applicant screening process? What will
be your applicant hiring process?
8. Outline your new employee and existing employee training and
education program. Determine the training that is needed for
new employees. Specify by job titles. Determine the training that
is needed for existing employees. Specify by job titles. Determine
the costs involved per employee.
9. Salaries, wages and benefits: complete a worksheet listing every
employee (including owners.) For each employee, list the wages,
mandatory benefits and optional benefits.

Risk Management
10.Consult an insurance agent to identify the business’s insurance
needs. Determine if insurance is needed to secure any possible
personal liabilities.
11.Identify if intellectual property rights protection is needed (eg.
Patents, copyrights, trademarks.)
12.Identify other risks your business may face, and procedures
envisioned to manage these risks.
13.Reduce hazardous materials and wastes to reduce risk.

The Marketing Plan

The Products/Services Plan

1. How do your products/services compare to those of the
competition. (Consider price, quality, availability, etc.) Is
competition from small or large firms? How will the quality affect
the competition? Make chart, competition, all products, how they
line up on factors.
2. For service businesses: can you sell this service as well as you
can perform it? Are your credentials and skills equal to or better
than your competition?
3. How will your product be produced? Will you buy local, close as,
or cheapest? Make it yourself, buy it wholesale, have someone
else make it? Will you make products for inventory, per order or
both? How will your services be delivered to the customer? Will
you perform the service or subcontract out?
4. Are there any liability issues attached to making or selling your
product or service? Will you have to deal with regulatory
agencies or get special insurance? How will this affect business,
will it become too costly? How can you design a product in a way
that surpasses regulatory issues?
5. Future products: When do you plan to add new products or
 services? Does the addition represent a new line of
products/services or an expansion of your current offerings?
6. Evaluate each of your products/services and assign each a place
in the product life cycle. Consider making a chart.
7. Analyze your product/service’s seasonality. Plan for slow periods.

Market Analysis: Competition

8. Who are your strongest competitors and where are they located?
Is their location a strength or weakness? What profile of
customer are they targeting?
9. Summarize key feathers and benefits of your strongest
competitors’ products and services. How do their
products/services meet customer need? What other strengths
and weaknesses do they have? How do you know this? How do
their prices/quality compare to yours?
10.What are your key competitive advantages? How will your
products/services better meet the needs and wants of your
customers? How are your products/services unique and different
from those of your competition? What can you do better than
your competitors? How do you know this?
11.In areas where your competitors are stronger than you, what can
you do to improve your competitive position? How do you know
this?

Market Analysis: Customers

12.Identify all of your customer groups by demographics: age,
gender, income level, education level, occupation, location,
family, children and ethnic origin.
13.Identify all of your customer groups by psychographics: where do
they shop? When do they shop? Why do they buy? How do they
shop? (Catalogue, email, internet, retail store, etc.) What do
buyers expect from your product/service? What do they want?
14.Analyze your business customers: annual sales, number of
employees, locations, legal structure. Who handles purchasing?
How is purchasing accomplished? Procedures for purchasing.
Expectations in purchasing.

Market Potential
15.How many potential customers live in your trade area?
16.How many fit your customer profile?
17.Is your market growing, declining or holding steady?
18.Individual customers: what is the per capita consumption of your
product/service? See sales tax figures, etc. Business customers:
what is the average order size and frequency?
19.What are price trends? Lowest? Highest? What market trends
dictate prices?
Marketing Strategies:
Location
20.Describe your business location and why it was selected.
21.Nearby businesses: do they add or detract. Home based? What
are pros and cons?
22.Discuss future location needs?

Price/Quality
23.Describe the relationship between price and quality.
24.Are you effectively positioned in relation to competitors?
25.Is your position consistent with your image?

Promotional Strategies
26.Packaging: How does your packaging reinforce your image?
Describe your packaging.
27.Public relations and informing the public: How will you use public
relations and networking to influence public opinion about your
business? How does this fit with the rest of your marketing plan?
28.Advertising: What advertising tools will you use and why? What
is your advertising budget? What is your promotional calendar
for special events? How will you promote your products and
services without waste? What media will you use?

Customer Service
29.Describe customer service strategies and how you will
implement
30.Describe your customer retention plan

The Financial Plan

Records and Controls

1. Create a recordkeeping checklist. Include who is responsible for
keeping company records of the major financial functions of your
company. Describe how records will be kept (electronically, hard
copy.)
2. Describe the key activities that require internal operating
controls. Indicate who is responsible for ongoing development of
controls in each area. What is the chain of command.

Cash Flow Projections

3. Complete a break-even analysis to determine your break-even
point. Show how this break-even point is realistic.
4. Develop a monthly cash flow spreadsheet for the first year.
Include incoming cash from all sources and outgoing cash from
 all expenses. Analyze your cash needs.
5. Develop an annual cash flow spreadsheet for years two and
three.

Financial Statements
6. Prepare projected income statements for three years.
7. Prepare projected balance sheets for three years.
8. Prepare a statement of owner’s equity.
9. Prepare a summary of financial needs. Explain how much money
you will need to borrow or invest yourself to cover your growth or
startup expenses, fixed asset purchases and working capital to
operate the business. Explain how much of the total funds will
come from the owner or outside investment (equity) and how
much borrowed (debt). Explain where you will get the money.
Explain how you will pay the money back.