The Parts of a Business Plan

The parts of a business plan

Each business plan is different and will contain subject areas different from what I present here. If you are manufacturing a product, you might include headings such as; Manufacturing Process, Key Suppliers, Distribution Channel, etc... More information on the parts of a business plan can be found at the links on the left.

Executive Summary
Who, what , where, when, name, products & services, markets, management, objectives, investment.

Business Description
Describe the business in more detail. Optional depending on executive summary.

Market Analysis
Overall market, trends, new markets, test markets, your target market.

Competitive Analysis
Who, where, strengths, weakness, threats

Products & Services
Describe products and services and comparisons to the competition.

Location
Cost, why chosen, amenities.

Pricing
What are the market prices and cost, what is the break even, options. This could be included with products and services.

Sales & Marketing plan
What, when, cost, distribution methods, prices, terms etc.

Ownership
Who, and what form. sole proprietor, corp. LLC. etc.

Management / Operations
Staffing plan, board of directors, compensation plan, resumes and specific competence of staff.

Financial Information
Capital cost, sources of cash, pro forma P&L and cash flow statement, balance sheet ratios.

Manufacturing or Assembly Process
Inventory, key venders, methods, equipment, etc.

Exhibits
Brochures, maps, licenses, management resumes, etc.

Specific Competence
What makes you business different or is exclusive to your company alone. Patents, copyrights, technologies, etc.

Writing a Business Plan

Writing a Business Plan

The Executive Summary

The executive summary is the second page of your business plan, coming right after the title page. The executive summary must capture the attention of the reader, and make the reader want to know more about your venture. The process I use when writing an executive summary is to write a few draft pages about the business, what are you planning, what are your hopes, dreams, wishes, what are you planning to achieve, and so on. You are trying to answer who, what, where, when, and why questions. After you write the rest of the business plan come back to your original draft pages, and write the executive summary. The rest of the business plan spells out in detail how you will do what is in the executive summary.

I broke this example down as to the questions you are trying to answer.

Business Plan Example:What? Explain what your business is about?

Johnny Q's Bar-B-Q Restaurant will operate as a restaurant and catering business. We will offer mouth watering Barbecue beef, chicken, ribs, turkey, sausage, ham as well as pies, cakes, and fried chicken, along with chopped Barbecue beef sandwiches, sauces and related side dishes and condiments all served cafeteria style for quick service. A drive up window will be available for take-out orders. Customers will be able to order by the plate or by the pound. Frozen and refrigerated Barbecue will be offered for do-it-your self-catering. We will offer catering on site or off site for any size event. With our custom made catering trailer we will be able to cater indoor or outdoor events and keep the food hot in the event of delays in serving time. Custom cooking will be available for holiday periods such as Thanks Giving and Christmas.

Where? Where will you operate?

The restaurant will be located on the main highway in Taft Texas to take advantage of the weekend highway traffic to the coastal beaches and the farm and oil field catering opportunities. We have a two-year lease with four two-year renewal options.

When? The Restaurant is scheduled to open in January 2008

Why? Why are you doing this?

Bar-B -Q is a Texas tradition and popular at catered events. Ours will be the only restaurant of this type the trade area. We have developed a special Barbecue sauce recipe and will Barbecue Boston butt cuts of beef for our main meat course and use back-strap beef cuts for our chopped Barbecue sandwiches, both of these meat cuts are not traditionally used for Barbecue but offer a superior dinning experience that will make us different and better then other similar restaurants. We will also offer the traditional barbecued brisket on the menu.

Whom? Who is doing this?

I have six years experienced in the barbecue business and three years catering experience, the recipes and cooking methods have been tested and perfected during this time.

Objectives? What are you planning to achieve?

It is our goal to be the best Barbecue establishment in the county and offer food so good that the customer will come back for seconds. We plan to develop a mail order sauce business as well as a frozen chopped Barbecue business to complement our restaurant's transit trade and to leverage our customer base. It is our goal to have sales of a million dollar with in five years.

Investment: How much money?

An investment of $250,000 will be needed to redecorate the rented space, construct and or repair the cooking pits, build a catering trailer, purchase the catering equipment, purchase the dinning room seating and buy the kitchen equipment. This amount includes ninety days operating expense.

Ownership:

Johnny Q's Barbecue restaurant will operate as a sole proprietorship.

Business Description

The Business Description

This is your chance to describe your business in more detail then you did in the executive summary. Is there something unique, or unusual, or new to your market, that will make your business successful? Do you have a service, or style that needs to be explained? Are there still questions after reading the executive summary that needs further clarifications? Etc.

Business Plan Example Johnny Q's Bar-B-Q will be unique, from its western style decor, to the catering trailer from which we will serve outdoor events. Our food offerings will be different from other Bar-B-Que restaurants in that we will barbecue Boston butt meat cuts in addition to the more traditional brisket commonly barbecued. Our chopped beef sandwiches will be made from barbecued back-strap cuts of beef cooked slowly for eight hours rather then the traditional leftover brisket commonly used for chopped barbecue (re-cooked brisket tends to be stringy). It produces a superior sandwich that is so tasty customers ask for seconds and request to go orders.

Customers will be able to choose from the cafeteria line all day or between 11:00AM to 2:00PM they may pick their meat choice directly from the pit area bringing to their dinning experience the heat, smells and ambiance that is Texas Barbecue. Sales will be by the pound or by the plate. Frozen chopped beef and sausage as well as Barbecue sauce will be available to take with you or ship to a friend.

Our catering trailer is designed to keep food hot and allow for the serving of 600 people an hour in an out door setting. The same trailer will be used to transport food to indoor catering events allowing us to keep the food at its optimum temperature to help assure a tasty dining experience.

Customers will be able to sign the walls of the restaurant and business men can leave their ties to be nailed to the rafters. All of this designed to make the customers feel part of the establishment.

The Market

The Market

If you are applying for a loan, you will need to convenience lenders that there is a market for your product, or service, and that you have the ability to service the market. What is the market size, what is your target market, what are the growth prospects, what market share do you plan to capture, and how.

Business Plan Example

Barbecue restaurants have been gaining in popularity in Texas for many years led by chain establishments such as Bill Millers in San Antonio, Texas. Because Barbecue is ready to serve when you come in to a restaurant it is a popular alternative to fast food when customers want fast service or to orders go.

We surveyed the car license plates in another restaurants in Taft over a three-month period and found that from 70% to 80% of the customers were from out of the county. Conversations with the restaurants owners confirmed these numbers. Our location on the main highway through town will be important to our success. Billboard type signs along the highways will inform customers of our restaurants fare and services.

There are 85,000 cars per day passing through town according to data from the highway department. Based on our survey of out of county license plates parked at prepared food establishments, approximately 1% of the traffic passing through town or 800 to 900 cars are stopping to eat each day. Being the only Barbecue establishment in our trade area we feel we can capture a 10% market share of the travelers who stop, plus the local trade and based on these numbers we will serve 110 customers per day at an average ticket between $7.00 to $9.00 per person.

There were 325 weddings, 12 parade and rodeo type events, 13 school events, 32 church events, 4 farm related events, 9 oil company events and several other private company and governmental agency events that our catering services could be offered to in our seven mile trade area. Beyond the normal trade area the numbers of available events per year to market catering services to increases dramatically. The average catered job is for 150 plates at an average price of $6.50, we expect to capture 36 to 45 events per year based on available events and our experience at other restaurants that offered catering.

Competitive Analysis

Competitive Analysis

Who are the competitors? Where are they? What are their strengths, and weakness? Make a list of each competitor in your trade area for each segment of your business. List the strengths, and weaknesses on a chart so that you can compare the products, and services offered. Write a brief description of each competitor's strengths, and weaknesses.

Gathering information on your competitors is bit difficult, and time consuming. Be bold, and talk to the businesses managers, most are pleased to have someone to talk to who is interested in what they do. You will learn a lot in the process, and anyone reading your business plan will know that you have done your homework.

Every time that I have walked into a competitor, and introduced myself, the person who happens to be accompanying me has been amazed at how accommodating, and open the business owners, or mangers where. Be bold it is a mind expanding experience.

Some years ago, I had applied for a bank credit line, I took my banker to lunch and on the way back to drop him off, I stopped to visit a competitor, he was amazed at the reception we got, and the resulting tour of the business's operation, I got the loan.

Business Plan Example.

There is only one other Barbecue restaurant with in 7 miles, it is located in Sinton, Texas and it is not located on the main highway. The establishment serves mostly local business as it is hard for non-locals to find the place being on a side street. They serve plate lunches, Barbecue by the pound and offer catering service and custom cooking. The food is good and the owner says he is ready to retire and would sell out. He does not do much catering any more as it is to much work with running the restaurant and all.

Our more direct competitors will be the food establishments in town, each of which offers different fare. There are two Mexican restaurants, one dairy queen, one cafe, and two hamburger restaurants. Based on our license plate survey and conversations with the managers, the cafe and the Mexican restaurants have more customers for breakfast then the fast foods establishments do, the fast foods places do better at lunch, and in the evening the patrons are pretty evenly divided with the Mexican restaurants doing the least. Most of our business will be at lunch and in the evening, with to go orders making up a third of business at noon and half of the sales between 5pm and 6pm.

We will be the only restaurants serving Barbecue with the exception of a once a month Barbecue offering at the cafe and chopped Barbecue sandwich offered at the dairy queen. We will have the only Barbecue to go and fried chicken to go in our trade area. Our average ticket is comparable to the other sit down restaurants.

There are two other establishments offering catering in our trade area. Neither has a restaurant to draw customers from and must advertise their offerings. One of the people has a deal with the cafe to use their kitchen and the other rents a churche's kitchen. As needed, both offer a wide range of fare but not Barbecue. We will stand out as the only barbecue offering and the only establishment with equipment designed to serve hot food to as many as 600 people and still serve the last person hot food indoors or out.

Note: I would include here a comparison chart, comparing your establishment to the competition, average customer check, and other pertinent data, such as drive up window, services offered, years in business, number of employees etc.

Buiness Location

Location

The location of a business has varying levels of importance depending on the type of business. For a restaurant, location can be a make or break decision, or affect the way you operate. For example; a restaurant located in an office district may get morning and lunch traffic, with little to no evening trade. A copy center would want to be near office buildings, and a university to increase their chance to attract customers. Make a list of the location requirements that would help your business succeed. Compromise your location requirements only after careful consideration. Choosing a bad location can be expensive, and costly to correct if you choose poorly. Do your homework.

Here are a few reasons not to choose a particular location, do not choose a location because it is conveniently located were you live, do not choose a location just because a real estate agent recommends it, do not choose a location because it is cheap, do not choose a location because you own it, do not choose a location because it was used for the same type of business before.

Do choose a location on the requirements of the business.

Consider:

Cost., A cheap location may not be the best.
Traffic count., Cars per day and are you on the going home side of the road?
Customers., Are you locating were your customers are? What is the area's demographics?
Competition., Is there any synergy being near the competition or similar businesses?
Ease of access., How hard is it to get to you?.
Parking., Availability ample parking and ease of access.
Zoning., Any restrictions that would impact your operations?.Â
Terms., How will the locations total cost effect your profitability?

Business Plan Location Example:

Johnny Q's Bar-B-Que will be located in a 1400 square foot former Mexican restaurant building where years earlier (1960s) there had been a restaurant located there called Johnny Q's Bar-B-Que, hence the name. The building is located on the main highway passing through Taft, Texas and has a drive by traffic count of 85,000 vehicles a day. Many of these are people going to the beach, to Corpus Christi or on a fishing trip coming out of San Antonio about 2.5 hours away. This will put many people past us for the breakfast and supper runs.

We will be located near a traffic light so are signs will be readily visible from the intersections. Parking is available in front of the store as well as on the side. The old Bar-B-Que pits are still there and some can be reused. A detached walk in cooler and storeroom are on the site. We believe this location will serve us well, because there are no other restaurants in the area serving the same menu fare, because the traffic count is good, because the location is close to the business district and because of the locations past history of having served as a successful bar-b-que restaurant for many years. The lease is for two years at $1,200 per month with four, two year renewals and a purchase option.

Note:
We would include here a map and traffic count analysis with site photos.

Pricing

Pricing

How you price your products or service will have a direct effect on your ability to make sales, and stay in business. In every industry there are normal mark-up percentages that will give you a starting point. For example, typically in the restaurant business the gross margin is 67%, or stated another way, food cost is multiplied by three to get the sale or menu price. Of that menu price, food cost is 33%, labor is 28% to 35%, and the balance has to cover everything else, and leave a profit. Given that information you would take your food cost times three, and compare the result to your local competitions prices to see if you can make money at the menu price you arrived at. From that starting point, you adjust your prices based on the market, and your business's ability to charge more. What is special about your business that the customer will pay more for? The possibilities include service, location, delivery, exclusivity, ambiance, extra features, image, etc?

Most beginners make one of two errors when pricing that are easy to avoid. They either over price the product or service, or they under price them. In the case of over pricing, the price is set by taking the cost to produce, and adding an arbitrary profit, and saying that is my price. The problem with this approach is that it ignores the rule of supply and demand. What a product or service cost you, or how much you want to make, has little to do with the sales price. To avoid over pricing your product, and getting few or no sales because of high prices, start with the market price for the product or service, and subtract your cost to provide the product or service. What is left is your gross profit margin. You can either make a profit with that number or you can't. If the profit margin is to low? you will need to re-think your strategy. Look at it this way, if your competition can make a profit at those prices, you need to find out how they do it, or sell something else. Very few people are successful going against the market driven prices.

A bigger problem beginners make, is under pricing the product or service. The reason for this is that that they do not take into consideration the real overhead cost. When calculating your cost of doing business you need to include everything, freight in, labor (at the rate it would cost you to hire someone to do the work, including your employer taxes), boxes, labels, rent, warehousing, etc. etc. After you know your total cost of supplying your product or service, your profit margin has to be high enough to pay for all of the business's expenses, and make a profit large enough to grow the business. The more common things beginners forget to account for in their business expenses are warranty cost, customer service, returns, credit card fees, bad account write offs, payroll taxes, labor at the going market rate, warehousing cost, and advertising cost. In the beginning you may be the chief cook and bottle washer, but eventually you will need employees. Will your prices support the future business growth? If you cannot get high enough prices now, you probably won't be able to later on when you need to.

Pricing Formulas.

It is best to set your prices, using the industry standard markups for the industry you are in. Vender sales representatives who serve the industry can usually provide this information. Having said that, I start my pricing using the following formulas when I do not have other information to work with. For products; I take my landed cost time two (cost 1.00 x 2 = a $2.00 sales price, a 50% gross profit). For services; I take my cost to provide the service, times three (cost 1.00 x 3 = $3.00 a 67% gross profit).
The formula to calculate gross profit % is, sales price, less cost, divided by sales price = % of gross profit.

Break Even Point.

Take your estimated cost to operate (ECO) for one year, divided by your gross margin (GM) % = break even (BE) dollars. (ECO divided by GM % = BE $)

If your gross margin is 33%, and your operating expenses come to $72,000 per year, you will need $218,000 in annual sales to break even. $72K divided by 33 = $218K

At a 40% gross profit margin your break even would be $180,000

Business Plan Example.

Johnny Q's Bar-B-Que's menu pricing was derived at by by calculating a 67% gross margin and comparing the resulting individual menu prices to other barbecue restaurants with in 200 miles of us. We then compared our plate prices and average ticket prices to the local competing sit down restaurants and adjusted prices accordingly. The goal was to set prices as high as possible while keeping our prices comparable with those of our customers other dining venue choices. Our food cost varies between 28% and 33% our labor cost will vary between 28% and 35% and our average gross profit margin after food cost and labor will be 36%. Our break even will occur on sales of $16,600 per month. See attached menu.

Catering margins were similar 36% food cost, labor at 26% is higher then our restaurants do to waste factor but labor is more efficient serving larger numbers of plates in a shorter time frame.

I would include a copy of the proposed menu, average ticket price, list of catering prices, etc.

Sales & Marketing

The Marketing Plan

The goal of any marketing plan should be to increase revenue. Any thing that leads to getting sales can be considered marketing, to include advertising, brochures, catalogs, sales letters, Internet web sites, signs, literature, labels, cold calls, public relations, and many other activates and promotion. Every thing you do in business should be looked at as a promotional opportunity. You go out to eat, leave a business card, You send an E-mail, include a link to your web site, You mail an invoice, include a discount coupon etc.

I break my marketing plans down into specific areas, and plan each out. These areas are, Location specific marketing, Daily activities marketing, Advertising, Public relations and Promotions.

Choosing a good location is the first and best use of promotion dollars. A well-chosen place of business will make marketing your business much easier,r and there for less expensive. When asked in a survey "Why did you choose to do business here?" over 50% of the customers say. "They drove by and had seen the location, or convenience of location" the answer to this type survey have not changed in the 35 years that I have been in business. Even for a web site the location of the business's placement on a search engine's results list, was the deciding factor.

Make a list of how you would promote our Bar-B-Que business.

Location Specific. This list would include signs, banners, bag advertising, business cards, printed bags, daily special board, point of sales material, graphics, menus, and landscaping, and other esthetic appearance maintenance.

Daily activities. Including business cards, sales calls, discount coupons include with the sales, letterheads, envelopes, suggestive selling.

Advertising. The list might include newspaper, radio, TV, brochures, flyers, magazine ads, web site, and billboards, door hangers, letterheads, envelopes, and ad specialties.

Public relations. Letters to the media on any event form store opening to new hires or new product development, customer service.

Promotions. Trade shows, consumer shows, off premise sales or displays, package deals, discounts, coupons, affiliate Internet marketing, E-mail, marketing, newsletters, etc.

Form Of Ownership

Form of Ownership

The form of business ownership you choose will have long-term consequences, and requires careful consideration. You should discus this subject with an attorney familiar with new business start-ups and/or with your accountant. I recommended you get a book on the subject, and study up on the advantages, and disadvantages of each form of ownership. Your decision should be based on the particular needs of the business, and your personal situation.

Most small businesses (about 75%) operate as sole proprietorships, or partnerships using a DBA (doing business as) certificate from their county court house. The ease of setting up a sole proprietorship makes it the popular choice. Sole proprietorships are inexpensive to set up and any losses help reduce your earned income from other sources.

In your business plan a statement that the business will operate, as a sole proprietorship is all that is needed. Include the statement in the management, or executive summary section. For Other forms of doing business an explanatory statement, and copy of the corporate charter, or partnership agreement should be included with the business plan.

Sole Proprietorships.

Register your DBA at the county court house, and get any needed licenses, or permits, and you are ready to go. This is your simplest, and lowest cost form of doing business. Note: Carry liability insurance to get rid of the liability worry. All losses, profits, and tax liability, pass through to the owner.

Partnerships.

Setting up a partnership is the same as a sole proprietorship, with the exception that the formal partnership agreement should be prepared by an attorney, and possibly recorded. The Partnership files a tax return, and each partner's share of any losses, or profits, pass through to the partners. The operation of the business is governed by the written agreement between the partners, thus the agreement should be written with do care and foresight.

Limited Partnerships.

Limited partnerships are used to raise capital, with one person (or an entity) acting as the general partner. General partners have full liability, and the limited partners act as silent partners, with no say in management. The limited partner's liability, is limited to the amount invested. There is a tax advantage to the limited partners. Both your attorney, and account should prepare the formal agreement, as there are both legal issues, and tax laws to be concerned with.

Corporation.

A corporation is an entity, and as such becomes the employer, and files a tax return. A Corporation is regulated under state law, and chartered by the secretary of state. When choosing to operate as a corporation there will be decisions to be made as to the state of incorporation, taxation, liability, stock issuance, accounting methods, record keeping, and other issues. You will want to consult with your attorney, and your accountant before deciding on this form of ownership, they will help you decide which type of corporation to use. A board of directors, elected by the shareholders governs the corporation.

There are advantages, and disadvantages to operating as a corporation, and you should have a thorough understanding of both. The most common advantages that new business owners' state as a reason to form a corporation has to do with liability, both as to legal liability, or financial liability. In most every case a new corporation will find that the major stockholders will have to personally guaranty all loans, and vender purchases making you personally liable. In almost every case if your corporation is sued, you as members of the board or officers of the corporation, will be sued individually also.

Limited Liability Company (LLC)

Chartered under state law, a limited liability company has the limited personal liability of a corporation, with the tax advantages of a partnership. An LLC is a tax reporting entity, but not a tax paying entity (check the IRS rules on reporting before forming your LLC). There are state laws, and federal rules governing LLC's, and your attorney, and tax accountant should advice you as to how to proceed.

Business Plan Example.Â

J Johnny Q's Barbecue restaurant will operate as a sole proprietorship.

Management

Management:

The credentials, and experience of the management team is often the deciding factor to a lender when a loan is requested. The success of any venture depends on management's experience in the industry, their knowledge of the market, and their demonstrated ability to execute the business plan. Lenders look at collateral, but lend to management. Investors, make their investment decision based largely on the past experience of the management team.

In the management section of your business plan, include a brief biography on each person who will be in a position of management, members of the board of directors, and other key personal. Include resumes on each, at the end of your business plan. I usually include a list of outside advisers (lawyer, account, consultant, etc) in the event a bank or investor wishes to contact them.

Business Plan Example.

From a business plan for an online company.
Planstore.com

MANAGEMENT:

Jim E. Glasgow will lead our management team. Mr. Glasgow has 35 years experience in retail sales, manufacturing and distribution. Mr. Glasgow was the owner and operator of Horizon Building system inc. for 12 years, a manufacture of storage buildings and small offices. He was district sales manager for Morgan Portable Buildings for nine years, a manufacture of portable buildings. He owned and operated a home improvement business that sold and installed carports, patio covers and wood decks for seven years. Mr. Glasgow is the owner of our online stores (patiostore.com) an online (profitable) retailer the past five years.
Other management team members will be hired as needed, each will have a minimum of five years experience in the areas need for the job.

The governing board will consist of Mr. Glasgow, an outside CPA, an outside lawyer, and two independed business people.

As the managing partner Mr. Glasgow will not be paid from the investors investment monies. Once the company is operational and producing a revenue steam Mr. Glasgow annual salary will be 5% of the annual sales. See the partnership agreement for full details.

ORGANIZATIONAL STRUCTURE

The company will be formed as a limited partnership with Mr Glasgow acting as managing partner. Mr. Glasgow will retain 51% of the company and investors will own the other 49%.

1. Executive. Consisting of the President/CEO, Jim Glasgow. Responsibilities include overall management, determining strategic direction.

2. Finance/Accounting. Headed by an Accounting Manager. Responsibilities include producing monthly financial statements, preparing cash flow forecasts, handling day-to-day banking relations, credit, collections, order entry department.

3. Sales/Marketing. Headed by the Marketing Manager. Responsibilities include developing marketing strategy, developing advertising concepts, arranging for product and placement of advertising, arranging for publicity, and managing the affiliate marketing plans.

4. Plan development Manager. This manager's responsibilities will include daily supervision and management of product development team.

5. Information Technology Manager. This manager's responsibilities will keep all systems operational.Â

Resumes and biographies enclosed.

Financial Information

Financial Information:

You will be expected to provide financial information on a Per-forma basis out five years. Provide estimated financial information by the month, for the first two years, and annual totals for the next three years. This information is shown using generally excepted financial statements, and is based on your future projected income and expenses, use assumptions that you can defend.

Most lenders, and investors, will read your executive summary and then head straight for the financial section. They will crunch a few numbers, and then look at the management section. You will need to document your numbers, and be prepared to answer questions on the data provided.

Financial spreadsheet software, and business plan software, make the process somewhat easier and the software gives you the ability to update the numbers as needed. Do not allow any inconsistency to exist between the data quoted elsewhere in your business plan, and that shown in the financial section.

You should prepare all of the financial statements yourself. If you do use someone else to prepare them, be certain you buy into the assumptions and projections, study the numbers so you know them as if you did all the work yourself. If you are applying for a loan or seeking investors you must be prepared to answer questions.

The software you use to write your business plan will walk you through the financial statements.

Specific Competence

Specific competence;

What is it, that you have, or do, that no one else does, that will have a bearing on your chance for success, or that adds value to your company, or that gives you the competitive edge?

The list would possibly include, recipes, patents, trade marks, trade dress, zoning restrictions, exclusive distribution rights, copy writes, exclusive contracts, license agreements, monopoly rights, etc.

If you have a good specific competence, you will get everyone's attention, and garner support for your project. This is often left out of business plans, and should be included if you have that extra something. Evidence will probably be required.

Business Plan Example.

Johnny Q's Barbecue restaurant's has the following list of things that will help give it a competitive edge in the market place.

1. A unique name.
2. A secret recipe for making a mild Barbecue sauce that has a loyal following.
3. A custom made catering trailer that no one else is using at this time.
4. A method of cooking mouth watering chopped Barbecue for sandwiches that brings them back for seconds and holds its flavor when frozen.

Barbecue Sauce recipe

1.5 Gallons of ketchup
3 Medium size onions, sliced
2 Cups sugar
1 Cup of salt
1.5 Gallons distilled (bottled) water
3 Tablespoons black pepper
1 16 oz. Bottle of Worcestershire sauce
1 lb. Fat trimmed from cooked Barbecue beef

Cook at 375 degree for 1.5 hours, then at 300 degrees for 2 hours.
Cooking in a covered electric cooker work best.

Strain out fat and onions, add flour to thicken. (Mix flour in 1/4 cup cold water first to prevent clumps.)

(Mix 1/2-cup flour in one cup cold water; add mixture slowly to hot cooking sauce until thick)

If it was easy, everyone would be doing it. unknown

Sample Plan

A sample business plan for a service business.

This business plan is for a mail and shipping center, to be operated in conjunction with a self-storage property. As there is no prior history of sales and expenses, all figures are conservative. Some assumptions were made. That equipment would be purchased rather then leased, that the store-front was provided ready to use with little finish out required. That some expenses were included in the rent paid to the self-storage facility, such as electricity, and trash pick up.

TITLE PAGE
__________________________________________________

Rigsby Mail & Copy Center

BUSINESS PLAN
_______________

DATE
______

CONTACT:
Name
Title
Address
Phone

BUSINESS CONCEPT
__________________________________________________

In the private mail center industry today, there is a much greater awareness than ever before of the need for convenient service. This has occurred as a result of customer's time constraints, and higher income levels. These facts create tremendous opportunities for businesses that specifically respond to the customers needs. Our mail center will be located in a part of the city with out this service. It will be operated in conjunction with a self-storage business, making the project viable where as it might not be viable as a stand-alone enterprise. We have a highly visible location, located near the busiest off ramp in the area. And next door to a savings and loan.

TARGET MARKET AND CUSTOMERS
__________________________________________________

We intend to direct all our marketing efforts to within a five miles radius of our location. To reach our sales goals over the next five years, we estimate that we will need to achieve about a 33% percent market share. Not enough to initiate an aggressive competitive response to our entry into the market. The demographics in this trade area indicate a high enough level of household income, with enough businesses and homes in the area to support our expected sales volume. We are further encouraged by the lack of competition, and excellent location. There are 2500 new homes planed over the next three years with in our five mile trade area, there is one hospital, and a new medical office building in the trade area, and several new businesses, including a super Wall Mart located across the expressway that is less then one year old

NATURE OF COMPETITION
__________________________________________________

This business focuses on the quality of service. Price is seldom emphasized, and tends not to vary much between most firms. Instead, firms try to emphasize to their customers how their service is better than that of their competitors. Mail services, and copy center services, is a local retail business with convenience of location being of primary concern.

Because we lack a university, or large office buildings in our trade area, we have and will likely in the future, have little or no competition. What business there is available from homes and businesses in the area, will do business with us as we will be the only store in the trade area offering all of these services at location. Our job will to be to provide a high level of service to keep the customers coming back.

What competition exists, offers limited services on a few of the services that we will offer, for example, we will make keys and so do other stores.
On about half of our services we will be the only commercial provider, IE: mail box rentals, photocopies, and shipping services, and more.

PRODUCT/SERVICE DESCRIPTION
__________________________________________________

The principle products & services are.
1. Mail Box Rentals
2. Packaging and shipping supplies
3. Mailing supplies
4. Rubber Stamps sales
5. Notary service
6. Moving trailer rental
7. Truck rental
8. Packaging service
9. UPS & Fed-X shipping
10. Fax service
11. Internet access
12.Gift Wrapping
13. Mail forwarding

MARKETING STRATEGY
__________________________________________________

We will closely integrate all of our marketing and sales efforts, to project a consistent image of our company, and a consistent reminder of services offered. The image we will present is one of convenience, and quality of service. We will advertise our service via direct mail in conjunction with the self-storage business, and via inserts that go out with every order or bag.

ORGANIZATIONAL STRUCTURE
__________________________________________________

The store will have one full time employee, and use part timers as needed. In addition, the self-storage business manager will assist where possible. Additional staff will be added as sales warrant.

Training manuals and videos will be used to train staff, and a operational manual will assist staff in the daily operations. Training is also available from equipment suppliers, and shipping companies such as Fed-X ground.

FACILITIES
__________________________________________________

As a service business, the location of our facility and the professional image it presents are essential parts of our marketing strategy. Since our target market is local, and cost control is critical, we are locating in 1000 sq. ft. adjacent to the office of Rigsby Self storage. Located on along the freeway access road, with high visibility at the busiest area on the east side of San Antonio, Texas. The building is new and designed for our use.

Financial

Assumptions:

Name of Plan:

Rigsby Mail & Copy Center

Starting Month:

1

Starting Year:

2004

Years:

3

Commissions %:

3.00

Freight Costs %:

0.00

Payroll Tax Rate:

13.00

Income Tax Rate:

35.00

Days Inventory:

0

Cost of Sales %:

33.00

Credit Sales?:

None

Credit Sales %:

0

Days Credit:

15

Cost of Sales A/P?:

None

Cost of Sales A/P %:

100.00

Cost of Sales Days A/P:

30

General A/P?:

None

General A/P %:

30.00

Balance Sheet

Balance

Cash

1,000

Accounts Receivable

0

Inventory

3,000

Other Current Assets

0

Total Current Assets

4,000

Depreciable Equipment Assets

20,000

Accumulated Depreciation

0

Net Depreciable Assets

20,000

Non-Depreciable Assets

0

Total Long-Term Assets

20,000

Total Assets:

24,000

Cost of Sales A/P

0

Non-Cost of Sales A/P

0

Short-Term Debt

0

Income Taxes Due

0

Total Current Liabilities

0

Stock & Paid-in Capital

0

Retained Earnings

0

Total Equity

24,000

Note; a financial spread sheets should be included in your business plan that shows all the income and cost projections, on a month by month bases for the first two years.

"You give your ideas value when you implement them" Jim Glasgow