PART

 1.  INTRODUCTION    
BUSINESS  NAME  
What  is  the  name  of  your  business?  
Hint:  When  deciding  on  a  name  for  your  business,  make  sure  it  captures  the  spirit  of  the  
business  you’re  creating  

DESCRIPTION  OF  BUSINESS    

What  will  your  business  do?  
Hint:  Imagine  that  you’re  explaining  your  business  to  a  family  member  or  a  friend.  It  should  be  
easy  to  explain  and  use  30  words  or  less.  

FORM  OF  BUSINESS  OWNERSHIP  

What  form  of  business  ownership  (sole  proprietorship,  partnership,  or  corporation)  will  your  
business  take?  Why  did  you  choose  this  form?  
Hint:  For  more  information  on  forms  of  business  ownership.    

IDEAL  CUSTOMER    
Describe  your  ideal  customer.  What  are  they  like  in  terms  of  age,  income  level,  and  so  on?  
Hint:  You  don’t  have  to  go  into  too  much  detail  in  this  part  of  the  plan;  you’ll  provide  more  
details  about  customers  and  marketing  in  later  parts.  For  now,  simply  outline  what  kind  of  
customer  your  product  or  service  will  best  fit.    

COMPANY  ADVANTAGES    
Why  will  customers  choose  to  buy  from  your  business  instead  of  your  competition?  
Hint:  Describe  what  will  be  unique  about  your  business.  For  example,  is  the  product  special,  will  
customer  service  be  exceptional,  or  will  your  price  be  lower?  
PART  2.  THE  COMPANY  AND  MANAGEMENT  TEAM    
THE  MISSION  STATEMENT    

MISSION  STATEMENT  
Provide  a  brief  mission  statement  for  your  business.  
Hint:  Be  sure  to  include  how  you  will  stand  out  from  your  competition  and  why  a  
customer  will  buy  from  you.    

ETHICAL  ISSUES    
All  businesses  deal  with  ethical  issues.  One  way  to  address  these  issues  is  to  create  a  
code  of  ethics.  List  three  core  (unchanging)  principles  that  your  business  will  follow.  
Hint:  To  help  you  consider  ethical  issues  your  business  might  face.  

SOCIAL  RESPONSIBILITY    
A  business  shows  social  responsibility  by  respecting  all  of  its  stakeholders.  What  steps  
will  you  take  to  create  a  socially  responsible  business?  
Hint:  To  help  you  consider  issues  of  social  responsibility.  Consider  how  you  may  need  to  
be  socially  responsible  toward  your  customers  and,  if  applicable,  investors,  employees,  
and  suppliers.  

INDUSTRY  PROFILE  

INDUSTRY  DESCRIPTION  
Describe  the  industry  and  sector  in  which  your  company  operates.  
Hint:  Industries  are  broad  categories  such  as  Financial,  Technology,  Services,  or  Health  
Care.  Sectors  are  more  specific  categories  within  an  industry  such  as  Sporting  Goods  
Store  in  the  Services  Industry  or  Computer  Peripherals  in  the  Technology  Industry.  In  your  
description  of  the  industry  and  sector,  discuss  economic  trends  as  well  as  the  current  
outlook  for  the  industry,  including  growth  potential.    

OPPORTUNITIES  AND  THREATS  

Describe  the  opportunities  and  threats  that  face  your  company.    
Hint:  Consider  external  factors  such  as  macroeconomic  matters,  technological  changes,  
legislation,  and  sociocultural  changes  that  may  affect  the  industry  as  well  as  your  
company.  This  typically  is  done  as  part  of  a  SWOT  analysis.  
COMPANY  PROFILE  AND  STRATEGY  

BUSINESS  GOALS    
What  are  three  business  goals  you  want  to  achieve  in  the  first  year?  What  are  two  
intermediate  to  long-­‐term  goals  you  want  to  achieve  in  the  next  3  to  5  years?  
Hint:  Be  as  specific  and  realistic  as  possible  with  the  goals  you  set.  Remember  the  
SMARTER  acronym.  Goals  should  be  Specific,  Measurable,  Acceptable,  Realistic,  Timely,  
Extending,  and  Rewarding.  For  example,  if  you  plan  on  selling  a  service,  how  many  
customers  do  you  want  by  the  end  of  the  first  year  and  how  much  do  you  want  each  
customer  to  spend?  If  you  plan  on  selling  a  good,  how  many  do  you  hope  to  sell?  

COMPANY  STRENGTHS    
Describe  the  strengths  of  your  company.    
Hint:  In  evaluating  the  company’s  strengths,  analyze  internal  resources,  including  
finances,  human  resources,  marketing,  operations,  and  technological  resources.  A  
company’s  strength  might  be  its  strong  marketing  department  or  a  favorable  location.  

RAW  MATERIALS  AND  SUPPLIES    

Explain  what  raw  materials  and  supplies  you  will  need  to  run  your  business.  How  will  
you  produce  your  good?  What  equipment  do  you  need?  What  hours  will  you  operate?  

ANTICIPATED  CHALLENGES  AND  PLANNED  RESPONSES  

ANTICIPATED  CHALLENGES  
Describe  any  weaknesses  or  potential  challenges  that  face  the  company.  
Hint:  Consider  any  potential  vulnerability  from  the  competition,  problems  with  suppliers  
or  resources,  or  any  legal  factors  that  might  affect  the  business  such  as  pending  
lawsuits,  patent  or  copyright  issues,  and  so  on.  

PLANNED  RESPONSES  
Describe  any  plans  you  have  to  address  these  weaknesses  and  anticipated  challenges.  
Hint:  Consider  any  resources  the  company  can  make  available  to  address  the  challenges  
mentioned  above.    

THE  MANAGEMENT  TEAM  

MANAGEMENT    
Who  are  the  key  individuals  who  will  manage  the  business?  
Hint:  Think  about  how  many  levels  of  management  as  well  as  what  kinds  of  managers  
your  business  needs.  In  addition,  outline  how  each  manager’s  contribution  will  positively  
impact  the  business.  What  is  it  about  that  particular  manager  that  will  help  the  business  
succeed?    
ORGANIZATION  CHART    
Show  how  the  “team”  fits  together  by  creating  a  simple  organizational  chart  for  your  
business.  Make  sure  the  organizational  chart  indicates  who  will  work  for  each  
manager  as  well  as  each  person’s  job  title.  
Hint:  Most  businesses  start  quite  small.  However,  as  you  create  your  organizational  
chart,  consider  what  your  business  will  look  like  in  the  future.  What  different  tasks  are  
involved  in  the  business?  Who  will  each  person  report  to  in  the  organizational  structure?    
PART  3.  MARKETING    
MARKET  ANALYSIS  

MARKET  RESEARCH  
Describe  your  target  market  in  terms  of  age,  education  level,  income,  and  other  
demographic  variables.  
Hint:  Look  at  the  aspects  of  target  marketing  and  market  segmentation  that  you  may  
want  to  consider.  Be  as  detailed  as  possible  about  who  you  think  your  customers  will  be.  

ASSESSMENT  OF  THE  COMPETITION  

Describe  three  companies  that  you  see  are  your  main  competitors.    
Hint:  For  each  company,  describe  their  perceived  strengths  and  weaknesses.  How  do  you  
intend  to  take  advantage  of  their  weaknesses  and  respond  to  their  strengths?  

THE  PRODUCT  OR  SERVICE  

PRODUCT  FEATURES  AND  BENEFITS    

Describe  the  features  and  benefits  of  your  product  or  service.  
Hint:  a  product  has  tangible  and  intangible  benefits  that  create  a  total  product  offer.  
Describe  your  product  on  three  levels—the  core  product  (what  basic  needs  or  wants  
does  this  product  or  service  satisfy?),  the  actual  product  (what  are  the  tangible  aspects  
of  the  product  that  you  can  taste,  see,  smell,  touch,  and  hear?)  and  the  augmented  
product  (what  are  the  perceived  benefits  that  provide  additional  value  to  the  customer’s  
purchase?).    

PRODUCT  DIFFERENTIATION    
How  will  you  make  your  product  stand  out  in  the  crowd?  
Hint:  There  are  many  ways  to  stand  out  in  the  crowd,  such  as  a  unique  product,  
outstanding  service,  or  a  great  location.  What  makes  your  product  special?  Does  it  fill  an  
unmet  need  in  the  marketplace?  How  will  you  differentiate  your  product  to  make  sure  
that  it  succeeds?  

PRICING    
What  pricing  strategy  will  you  choose  for  your  product,  and  why  did  you  choose  this  
strategy?  
Hint:  Focus  on  pricing  strategies  and  tactics.  Since  your  business  is  new,  so  is  the  
product.  Therefore,  you  probably  want  to  choose  between  price  skimming  and  
penetration  pricing.  Which  will  you  choose  and  why?  
SALES  AND  PROMOTION  

PLACE  (DISTRIBUTION)  ISSUES    

Where  will  customers  find  your  product  or  service?  (That  is,  what  distribution  
channels  should  you  consider?)  
Hint:  If  your  business  will  sell  its  product  directly  to  consumers,  what  types  of  stores  will  
sell  your  product?  If  your  product  will  be  sold  to  another  business,  which  channel  of  
distribution  will  you  use?    

ADVERTISING    
How  will  you  advertise  to  your  target  market?  Why  have  you  chosen  these  forms  of  
advertisement?  
Hint:  Marketers  use  several  different  advertising  media—specific  communication  devices  
for  carrying  a  seller’s  message  to  potential  customers—each  having  advantages  and  
drawbacks.  

PROMOTIONS    
What  other  methods  of  promotion  will  you  use,  and  why?  
Hint:  There’s  more  to  promotion  than  simple  advertising.  Other  methods  include  
personal  selling,  sales  promotions,  and  publicity  and  public  relations.  Think  how  to  
promote  your  product  that  go  beyond  just  advertising.  
PART  4.  THE  FINANCIALS  
EXPECTED  REVENUE    
How  much  will  you  charge  for  your  product?  How  many  products  do  you  believe  that  you  can  
sell  in  one  year  (or  how  many  customers  do  you  think  your  business  can  attract)?  Multiply  the  
price  that  you  will  charge  by  the  number  of  products  that  you  hope  to  sell  or  the  amount  you  
hope  each  customer  will  spend.  This  will  give  you  an  estimate  of  your  revenues  for  one  year.  
Hint:  You  will  use  the  amounts  you  calculate  in  the  costs  and  revenues  questions  in  this  part  of  
the  plan  in  the  accounting  statements,  so  be  as  realistic  as  you  can.  

COST  OF  DOING  BUSINESS    

What  are  the  costs  of  doing  business?  Equipment,  supplies,  salaries,  rent,  utilities,  and  
insurance  are  just  some  of  these  expenses.  Estimate  what  it  will  cost  to  do  business  for  one  
year.  
Hint:  Insert  the  costs  associated  with  doing  business  in  the  following  table.  The  list  below  
provides  some  hints  as  to  where  you  can  get  this  information.  Note  that  these  are  estimates—
just  try  your  best  to  include  accurate  costs  for  the  expenses  you  think  will  be  a  part  of  doing  
business.  

Expenses   Expected  Monthly  Cost   Expected  Yearly  Cost  

Rent      
Salaries  and  Wages      
Supplies:  Technological,  Equipment,      
Furniture,  Other  (computers,  
software,  copy  machine,  desks,  
chairs,  etc.)  
Advertising  and  Other  Promotions      
Utilities:  Heat,  Electricity,  Etc.      
Utilities:  Telephone,  Internet      
Insurance      
Other  (specify)      
Other  (specify)      
STARTUP  COSTS    
How  much  money  will  you  need  to  get  your  business  started?  
Hint:  Refer  back  to  where  you  analyzed  the  costs  involved  in  running  your  business.  
Approximately  how  much  will  you  need  to  get  your  business  started?  

FINANCING    
How  will  you  finance  your  business?  For  example,  will  you  seek  out  a  bank  loan?  Borrow  from  
friends?  Sell  stocks  or  bonds  initially  or  as  your  business  grows?  
Hint:  Identify  sources  of  short-­‐term  and  long-­‐term  funds.  Refer  to  information  on  securities  such  
as  stocks  and  bonds.    

INCOME  STATEMENT  AND  BALANCE  SHEET    

Create  a  balance  sheet  and  an  income  statement  for  your  business.