Business Plan Preparation Guidelines
Overview and Official Rules
A business plan is a chance to think through all the steps needed to create and operate your business
– before you’ve committed too much of your time and energy, not to mention money, to the project.
Taking the time to create a well thought out business plan will save you a lot of trouble once you
begin your business and start you on your way to owning your own successful business.
Business plans can use different formats, but all of the same information needs to be there. Your final
business plan will consist of 7 sections, but sections 2 through 7 need to be completed before you
write Section 1. Once you fully understand your business you’ll be ready to write an Executive
Summary which convincingly conveys the excitement and confidence you feel for your business.
Here’s how the sections are described in the official requirements:
1.
Executive Summary: Should summarize and sell the business plan in 1 to 2 pages. This is the
reader’s first (and sometimes only) impression of your business plan. Prepare this section after you
have completed the other sections as it is a summary of the other sections.
2.
Industry Analysis: Describes what type of industry the business will operate in. Illustrates the
trends within the industry, and explains how the business will take advantage of projected future
developments in the industry.
(a)
Target Market - Analysis of the proposed customer base with regards to age, gender,
residence location and types of factors that influence whether or not the customer will buy the product
or service. Explains a verifiable amount of potential customers, with information including, but not
limited to, income and spending habits.
(b)
Competition - Detailed analysis of potential competitors, with attention paid to how the
business will compete in the market. Explains the factors that give the business an ongoing competitive
advantage.
3.
Marketing Plan: Displays workable strategies for informing the target market of business
products or services. Details sales and promotion strategies.
4.
Operations: Describes how the business is managed and produces products or services.
Describes how the business will cope with growth, and the changes that will allow the business to grow.
(a)
Technology - Shows a working knowledge of required technologies for running the
business. Provides a plan for acquiring necessary equipment.
(b)
Management - Details ownership and management structure.
5.
Social Responsibility: Describes the community return provided by the business, with a focus on
any positive impact on Humboldt County beyond the financial.
6.
$5000 Dollar Spending Plan: Description of the planned allocation of the prize money.
7.
Financials: Includes a 3 year financial projection based upon assumptions made throughout
plan. Financial documents should include: balance sheet, cash flow, profit and loss, detailed startup
costs, and financial assumptions.
2
Business Plan Preparation Guidelines 2011
This guide will help you to prepare your plan by describing what is required and giving you
examples of two imaginary businesses. In addition, the guide will be referencing a business
plan for a third imaginary business “Twisted & Toasted Pretzels”. The reference will direct
you to look at how the topic was handled by directing you to the page and paragraphs in that
plan.
Good Luck!
3
Business Plan Preparation Guidelines 2011
Section 2: INDUSTRY ANALYSIS
Typical Length: Two to Five Paragraphs
FIRST PARAGRAPH: What is changing in your market that makes your business a good idea
now?
SECTION 2 EXAMPLE #1
Laser Engraving Business: In the past, it took weeks to get engraved items made and
the prices were reasonable only if you bought large quantities. Today’s laser engraving
machines are simple, fast, and easy to make one or a hundred of an item. Nearly every event
can be cleverly commemorated, from the prom to a beach party, a wedding or a graduation.
Children’s Party Organizer: The fast pace of parents lives don’t make parties less
important to their children. The opportunity to put on a memorable party for their kids without
running themselves ragged is now both affordable and easy with the indoor and outdoor party
equipment available today and the expertise to keep the fun happening.
Twisted & Toasted: Page 5 paragraph 1
NEXT PARAGRAPHS: Who is likely to use your product or services, and what makes you think
they would?
SECTION 2 EXAMPLE #2
Laser Engraving Business: There are 7 regular high schools and 4 charter schools in
Humboldt County with an average of four major events per year and an average of total of 200
students each This results in an opportunity of 8800 possible sales opportunities. If 5% of those
opportunities result in a sale, that would result in 440 sales. Similar calculations can be made
for weddings, business promotions, community events such as rodeos, fairs, music festivals, and
dozens of similar events.
Children’s Party Organizer: According to the 2010 US Census, Humboldt County has
28,000 children between the ages of 1 and 12. Capturing just 0.1% of those children’s birthday
parties would result in 28 parties a year. Adding additional events in which children are present
such as Holiday parties, family gatherings, and school events could easily result in more than
one event per weekend, exceeding our target sales figure.
Twisted & Toasted: Page 5 paragraph 2
4
Business Plan Preparation Guidelines 2011
FINAL PARAGRAPHS: How are these customers being served now? Why would they use your
services rather than their alternatives?
SECTION 2 EXAMPLE #3
Laser Engraving Business: Many events provide clothing with logos for sale at the event.
These products are generally produced by local screen-printing companies including Company X
and Company Y. Additionally, the marketing company Z produces many types of materials such
as cups, hats, pens, and banners, especially for larger organizations and companies. The Laser
Engraving Company proposes to create unique items for events, such as wood, metals, glass,
and natural found objects that are not available from other sources or in small quantities.
Children’s Party Organizer: Restaurants, recreational programs, and museums are the
main alternatives for planned children’s’ parties. The Children’s Party Organizer will allow for
parties to be held at homes, and will maintain a variety of party technologies that will appeal to
a variety of interests, including organized games, physical activities, video technologies and
crafts not found at any one location.
5
Business Plan Preparation Guidelines 2011
Section 3: MARKETING PLAN
Typical Length: Two to Five Paragraphs
FIRST PARAGRAPH: What is your strategy to let people know about your business? Some
common approaches are:
- technology based approach using the social media, Internet search engines, Craigslist, etc
- traditional media approach using business cards, paid print or broadcast advertising
- guerrilla marketing strategy using staged publicity events, volunteer work, flyers, etc
- personal networking using your existing personal contacts
- a hybrid approach using several methods
SECTION 3 EXAMPLE #1
Laser Engraving Business: In order to keep out of pocket costs low, demonstrating the
remarkable technology itself through limited distribution of engraved materials to decision
makers will be the principal method used to market the product. Other low costs marketing
techniques will be used including a simple website, use of Craigslist and developing a social
media approach over time as contact information is gathered.
Children’s Party Organizer: Initial marketing of services will be done through personal
contacts with a group of parents personally known, and using a “network” approach to reach
parents of the guests. I will combine this approach with one or two “pro bono” events for my
church during which I will distribute promotional material.
Twisted & Toasted: Page 5 Paragraph 3
ADDITIONAL PARAGRAPHS: Further describe the techniques outlined above including
frequency of activity, who will be doing the work, and types of materials required. If pricing
is a key part of your business positioning in the current market it would be appropriate to
include it here. Be warned, though – having the lowest price is rarely a good business model
for a small business!
Be realistic – each of these activities will need to be reflected as costs in the financial
information in Section 7.
6
Business Plan Preparation Guidelines 2011
SECTION 3 EXAMPLE #2
Laser Engraving Business: An initial list of 40 organizations has been compiled that are
personally familiar or have been suggested by an advisor as potential customers for laser
engraved products. Samples for each of these leads will be produced for little or no out-ofpocket cost and a moderate investment of time. The samples will then be presented to the
prospective customer at a prescheduled meeting. The samples will contain contact information
including a phone number and website address.
Additionally, free laser engraved items will be offered to several non-profit events, again
with contact information on each item, in order to get the services known to a wide local
market.
Children’s Party Organizer: Initial marketing of services will be done through personal
contacts with a group of parents personally known, and using a “network” approach to reach
other parents. At each party where hired, an inexpensive, age-appropriate gift will be given to
each child that will contain contact information for my business.
This networking approach will be combined with one or two “pro bono” events for our
church during which promotional material will be distributed. A press release with pictures
taken at the church events, using the press release guidelines from the Times Standard, will be
submitted to three local publications as an additional method to get the services known to a
wider group of people.
Flyers will also be prepared with the advice of Sarah Smith, a local graphic artist, to be
posted at schools and child care centers in a geographical area within a 45 minute drive from
the business.
Twisted & Toasted: Page 6 Paragraph 1
7
Business Plan Preparation Guidelines 2011
Section 4: OPERATIONS
Typical Length: Two to Five Paragraphs
FIRST PARAGRAPH: What are the basic divisions of the business operations? For instance,
who makes the product or provides the service? Who interacts with the customers? Who
keeps track of the money? Who does the marketing? Who drives the use of technology?
New businesses often use “advisors” to assist them in doing as much of the work as possible
themselves to help keep the costs down.
SECTION 4 EXAMPLE #1
Laser Engraving Business: Julie Jones, the owner of the Laser Engraving Company, will
be responsible for all aspects of the business. Ms Jone’s expertise in the graphic artwork and the
use of the Whizkid Laser Machine allows for efficient production of exciting engraved products
without the use of additional help. She will use the expertise of a team of more experienced
advisors for several of the other areas of the business. These advisors have agreed to provide
their services at no cost for the start up phase of the business.
Children’s Party Organizer: Jane and John Doe, the owners of the company are highly
experienced in children’s’ events through their experience at the Redwood Community Center
and familiarity with the latest gaming equipment. They will also be able to perform the outreach
to potential new clients through their extensive personal connections. However, Jane & John
will also make use of an informal group of advisors and some paid services to perform some of
the functions of the business.
Twisted & Toasted: Page 8 paragraph 1
ADDITIONAL PARAGRAPHS: Describe specific individuals, and their experience, that will be
responsible for performing tasks or coaching you through each of the following support areas
that are applicable to your business:
Technology, Bookkeeping, Marketing, Financial Management, Risk Management
Again, any costs associated with these individuals will need to be reflected as costs in the
financial information in Section 7.
8
Business Plan Preparation Guidelines 2011
SECTION 4 EXAMPLE #2
Laser Engraving Business: Joe McGeek will be assisting in the development of a simple
informational website. The software used will be the free WebPro program, with which Joe will
train the owner to be able to make simple changes in the text and photos.
Mary Numbers will be setting up the financial records in QuickBooks accounting
software on a pro bono basis and will be available for assistance as needed, while the owner will
be performing the entering of data.
The Laser Engraving Machine will be located in a rental garage near the owner’s home,
and all office functions will be performed there as well
Children’s Party Organizer: Bookkeeping for the organization will be performed by one
of us (Joe) through a simple hand written ledger system recording sales income and expenses as
they occur. Jane will be working with Sarah Smith on the graphics for the business. Mary Safe
of Safe & Associates will be providing liability insurance for the business. A web site is not
currently planned but will be considered at a future date.
Transportation of the party equipment will initially be performed with a family owned
pick-up truck. However a major goal of the business is the purchase of a truck within the first
year.
Storage of the equipment is currently planned for a storage unit within one half mile of
my home. Support functions will be conducted from home, incurring no additional rent expense.
Twisted & Toasted: Page 8 paragraph 2 & Page 9 Paragraph 1
9
Business Plan Preparation Guidelines 2011
Section 5: SOCIAL RESPONSIBILITY
Typical Length: Two to Three Paragraphs
FIRST PARAGRAPH: What would your business do to help make Humboldt County a
better place to live, beyond the financial aspects? This can include the benefits to your
customers, service work or donations you plan to contribute back, or experience and training
for others gained through working with you.
SECTION 5 EXAMPLE #1
Laser Engraving Business: The opportunity to celebrate the unique quality of Humboldt
County is in danger of vanishing due to the flood of products from China and the dominance of
nationally branded companies in the local economy. One way to help stem the tide is through
truly unique memorabilia and branding items that set us apart and proudly say “Humboldt”.
The Laser Engraving Business is uniquely situated to do just that.
Children’s Party Organizer: Children tend to be better in touch with the latest trends and
technologies, and like to share these things with their friends. Parents are often bewildered and
left to their own devices can plan a party that “misses the boat”. By hiring the business to take
the lead, the partygoers can have a great time and the parents can look like heroes.
Twisted & Toasted: Page 7 paragraph 1
ADDITIONAL PARAGRAPHS: How will your business affect the environment, positively or
negatively, and how will you address that?
SECTION 5 EXAMPLE #2
Laser Engraving Business: Using driftwood, river rocks, and recycled materials in our
engraved products conserves resources and instills appreciation for nature. The laser equipment
uses relatively low amounts of electricity to operate and by producing the items locally,
emissions due to shipping materials from around the globe are reduced. Nevertheless, some
resources will be used in this business. To help offset that footprint, the Laser Engraving
Business will partner with the Humboldt County Land Trust in fundraising events that assist in
preserving the unique qualities of our area.
10
Business Plan Preparation Guidelines 2011
SECTION 5 EXAMPLE #2
Children’s Party Organizer: Parties can often generate large amounts of trash. Some of
the ways that our business will help to reduce the environmental impact of parties are:
* Offer dishwashing services as part of the party package
*Provide many party games and equipment that will be used many times, instead of
parents using them once and disposing of them
*Announce a prize for the most creative recycled present wrapping materials in the
invitation
*Offer craft projects using natural materials that can lead to a greater appreciation for
the environment
11
Business Plan Preparation Guidelines 2011
Section 6: $5,000 SPENDING PLAN
Typical Length: One or Two Paragraphs and a Chart
FIRST PARAGRAPH: What motivates the way you plan to spend the money for your
business? Outlays of cash that are for short term expenses such as rent, advertising, or
salaries need to show clearly how they will lead to more income in the short term. Medium
term expenses such as vehicles, technologies that are subject to rapid change, or items that
will wear out in a few years should pay for themselves and more in their lifetimes.
Remember, the goal is long term prosperity for you and the community, so get-rich-quick
schemes, though tempting, are usually not in anyone’s best interests.
SECTION 6 EXAMPLE #1
Laser Engraving Business: Over 90% of the initial outlay for my business is for the laser
engraving equipment needed to produce the product. As such a crucial part of the business it is
essential that the equipment be well made and long lasting, since repairs or replacement to the
machine would be difficult until the business was very well established.
I have spoken to 7 owners of this machine in different areas of the country whose names
I obtained from the manufacturer. While it is not likely that they would refer me to a
dissatisfied customer, I feel that I have received honest feedback from the owners of these
machines, including advice as to some of the shortfalls and limitations of the machine.
Nevertheless, based on the experience of this group of operators, the machine should easily last
5 years without major expenses, enough time to securely establish my business and save money
for a new machine.
Children’s Party Organizer: In order to be the best children’s party organizers in the
area, we will need to have the best children’s party games and equipment. The items will need
to be sturdy and easy to clean and repair, attributes that were in the forefront of our minds
when choosing items. However, there will need to be a steady supply of new activities available
to keep the parties fresh. We have chosen several of the games in particular because they are
able to be reconfigured for new activities while using the same equipment.
We have also specified some computer, software, and printing equipment that will allow
us to add additional items to our sales, such as invitations, party favors, and hats, as well as to
be used in other aspects of the business operations.
Twisted & Toasted: Page 10 paragraph 2
12
Business Plan Preparation Guidelines 2011
CHARTS: Gather the information here for your start up costs. The information you include
here will be entered in to the financial statements in Section 7.
SECTION 6 EXAMPLE #2
Laser Engraving Business:
Student Business Challenge Award
Personal Savings Investment
Gift from Relatives
Total Capitalization
Whizkid Laser Machine 5500
Shipping of the above
Laser Machine Operating Supplies
Initial Rental expense and deposit
QuickBooks Pro Accounting Software
Total Initial Expenditure
$5,000
$1,000
$ 500
$6,500
$4,300
$ 325
$ 250
$ 475
$ 150
$5,500
Cash Reserves
$1,000
Children’s Party Organizer:
Student Business Challenge Award
Personal Loan
Personal Savings Investment
Total Capitalization
Jumperoo 15’ x 15’ Bounce House
Two Xbox 360 4GB Consoles with Kinect Bundles
Additional Kinect Cameras
Kinect Software (5 Each)
Assorted Game Equipment
First Year’s Insurance
Dell X-45 Computer System with Color Laser Printer
Kid’s Graphics Software Package
Game and Invitation Paper Supplies
Storage Unit Initial Rent Expense
Total Initial Expenditure
$5,000
$2,000
$ 500
$7,500
$2,300
$ 650
$ 150
$ 250
$ 325
$1,800
$1,300
$ 75
$ 75
$ 175
Cash Reserves
$7,100
$ 400
Twisted & Toasted: Page 10 Paragraph 3
13
Business Plan Preparation Guidelines 2011
Section 7: FINANCIAL STATEMENTS
Experienced readers of business plans give a quick overview of your initial summary (Section
One) and flip to this section – because the numbers show if you’ve really thought through
your plan, and if your business has a good potential for success.
The columns of numbers can be intimidating, though, so we’ll go through each statement and
help you develop an accurate estimate for each line. This shouldn’t be too hard if you’ve
gathered information for each of the previous sections.
It is far easier to use a spreadsheet program such as Microsoft Excel to make these
calculations, but you can create your own grid and add it up by hand. The best approach for
most people is to gather all the numbers and enter them in the excellent financial template
created for this competition and available from your advisor.
14
Business Plan Preparation Guidelines 2011
Your Business Name
Start Up Costs
Item
Estimated Cost
Equipment and Supplies
Enter all the items you were going
buy to start your business as
listed in Section 6
Subtotal
Put items in the appropriate spot
Furniture and Fixtures
Don’t forget to include fees for
any permits or licenses you
Subtotal
may need
Vehicles
Subtotal
Inventory
Rent
Other
Total Start Up Costs
$
15
Business Plan Preparation Guidelines 2011
-
Your Business Name
Start Up Resources
Source
Amount
Invested
Enter the amounts of money you
Student Business Challenge Award
will be bringing to the business
Personal Savings
here using the information from
Gifts
Section 6
Other
Subtotal
$
-
Borrowed
Loan
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Enter any loan amounts here
Annual Interest Rate
Enter the interest rate in the box
Term of Loan (Months)
Enter loan period in the box
Subtotal
$
-
Total Start Up Resources
$
-
Cash Reserves (Costs Less Resources)
$
-
Every business needs money
to operate - It's a good idea to
maintain reserves in the bank!
16
Business Plan Preparation Guidelines 2011
Your Business Name
Forecasted Revenue
1st Month
1st Year
Quantity Avg cost
Type of item
Total
Sold
per item
Cost of
Avg selling
Goods
Sold
price per
item
Revenue
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
17
Business Plan Preparation Guidelines 2011
Instructions for Forecasted Revenue
What is a realistic amount for your business to sell in one month? Whether it’s your labor or
a product, there is only so much of your time available. If your business is booming you may
want to hire extra help, but you may still find yourself stretched thin. Business plans often
overestimate the amount of revenue a business can reasonably generate, causing reviewers
to lose faith in the realism of the entire plan – so it’s important to think this section through
and be able to justify your forecast.
If you are making a product, how long does it take from start to finish? If you are reselling a
product, how long does each sales transaction take to complete, from the time the customer
approaches you to the time they walk out the door? And how many customers can be
reasonably expected to be interested in your product? Even if you are mainly selling your
time, how much extra time will you need to operate your business doing the support work
such as marketing, planning and recordkeeping?
If you are selling your time only, enter zero in the “avg cost per item” column. If you are
selling a product, don’t forget to include the cost of any labeling, packaging or shipping that
will add to the expense of each item. Don’t include the cost of expenses like utilities or
supplies that might be needed to make the product, they will appear in the next sheet.
18
Business Plan Preparation Guidelines 2011
Your Business Name
Monthly Forecasted Operating Expenses
1st Month
1st Year
Type of Expense
Amount
Cost of Goods Sold
$
Loan Repayment
-
This automatically comes from the Revenue page
$0.00 This automatically comes from the Start Up page
Advertising
Ask the advertisers for their "rate sheet"
Insurance
Check with an agent to get an accurate amount
Payroll Taxes (assume 15% of salaries)
Hiring independent contractors may be an option
Rent
Salaries
Supplies
Utilities
Include any deposits in the Start Up page
Other
Total Expenses
$
-
Make sure to include anything you mentioned in Sections 2 through 6!
19
Business Plan Preparation Guidelines 2011
20
Business Plan Preparation Guidelines 2011
Your Business Name
Cash Flow Statement
1st Year
1st
Month
Beginning Cash
Revenue
Expenses:
Cost of Goods Sold
Loan Repayment
Advertising
Insurance
Payroll Taxes (assume 15% of
salaries)
Rent
Salaries
Supplies
Utilities
Other
Total Expenses
Net Cash Flow
Ending Cash
Total
$
$
-
$
$
-
$
$
-
$
$
-
$
$
-
$
$
-
$
$
-
$
$
-
$
$
-
$
$
-
$
$
-
$
$
-
$
-
$
-$
-$
-$
-$
-$
-$
-$
-$
-$
-
$
-$
-$
-$
-$
-$
-$
-$
-$
-$
-
$
-$
-$
-$
-$
-$
-$
-$
-$
-$
-
$
-$
-$
-$
-$
-$
-$
-$
-$
-$
-
$
-$
-$
-$
-$
-$
-$
-$
-$
-$
-
$
-$
-$
-$
-$
-$
-$
-$
-$
-$
-
$
-$
-$
-$
-$
-$
-$
-$
-$
-$
-
$
-$
-$
-$
-$
-$
-$
-$
-$
-$
-
$
-$
-$
-$
-$
-$
-$
-$
-$
-$
-
$
-$
-$
-$
-$
-$
-$
-$
-$
-$
-
$
-$
-$
-$
-$
-$
-$
-$
-$
-$
-
$
-$
-$
-$
-$
-$
-$
-$
-$
-$
-
$
-$
-$
-$
-$
-$
-$
-$
-$
-$
-
$
$
-
$
$
-
$
$
-
$
$
-
$
$
-
$
$
-
$
$
-
$
$
-
$
$
-
$
$
-
$
$
-
$
$
-
$
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
21
Business Plan Preparation Guidelines 2011
Instructions for the Cash Flow Statement
The cash flow statement shows how money will flow through the business – and how much should be building up in the bank if
things are going well.
Each month your business will start with a certain amount of money. As the month goes on, some money will flow in through
sales or collecting on last month’s sales, and a certain amount will go back out to pay for new supplies or to pay off bills for items
that you already received.
If your business has pretty steady sales all year round, the cash flow statement is also very steady. However, if your business has
a lot of seasonal fluctuation, watching your cash becomes very important. You must make sure that enough cash is left in the
bank at the end of the busy season to pay for supplies needed as you begin to ramp up for the next busy season.
The numbers in the cash flow statement come from the revenue and expense sections you just entered and assume that your
business will have steady sales all year long. If your business will be seasonal, change the amounts in both the revenue and
expense sections to reflect your busy and slow months.
22
Business Plan Preparation Guidelines 2011
Your Business Name
Income Statement
Years 1, 2 and 3
1st Year
Revenue
$
-
Expenses:
$
-
Cost of Goods Sold
$
-
Advertising
$
-
Insurance
$
-
Payroll Taxes (assume 15% of salaries) $
-
Rent
$
-
Salaries
$
-
Supplies
$
-
Utilities
$
-
Other
$
-
Total Expenses
$
-
$
-
$
-
Net Income
$
-
$
-
$
-
The income statement shows all the sales and all the expenses for a particular time
period. This is different from a Cash Flow Statement, because you may not receive
cash until after the sale is made or you may pay your vendors after you have received
the goods or services they sold to you.
How will your business change over time? This is the time for a crystal ball - but a
realistic one. Remember that you will need to increase your costs if you increase
your sales. As a business gets more successful, the time needed to keep everything
straight also increases. Will you be able to handle it, or will you need an employee or
a partner to help?
The first year will come from your previous sheets. Either copy over to the next years
or make adjustments that you can justify from your business plan.
23
Business Plan Preparation Guidelines 2011
Your Business Name
Beginning Balance Sheet
1st Month
1st Year
Assets
Liabilities
Current Assets
Current Liabilities
Cash
$
-
Inventory
$
-
Loans
$
-
$
-
$
-
Long-term Liabilities
Total Current Assets $
-
Loans
Total Liabilities
Fixed Assets
Equipment
$
-
Owner's Equity
Furniture
$
-
{Your name}, Capital
Vehicles
$
-
{Partner's name}, Capital
Total Fixed Assets
$
-
Total Owner's Equity
$
-
Total Assets
$
-
Total Liabilities & Equity
$
-
The Balance Sheet is a snapshot of your business on a particular day - in this case your first day, before
you have sold anything! It's called a balance sheet because the two halves of it - your assets
(everything the business owns) and the liabilities and equity (who the business owes money to and
whatever is left over) should be equal. Remember that if you borrowed for the business it's as if
someone else owns part of your business.
All the items will be automatically entered from your previous sheets, except the Owners Equity section.
If you have a partner, divide the "Total Owner's Equity" between you according to your agreement. If
you are the sole owner, put the full amount next to your name.
If you have a partner, you need to include your partnership agreement, in writing, with your plan as an
appendix. The agreement should cover who is responsible for the work, who is responsible for the
debts, how any profits or losses are shared, and how one or both partners can withdraw from the
business, as well as how business decisions are made.
24
Business Plan Preparation Guidelines 2011
Last but not least!
Section 1: EXECUTIVE SUMMARY
Typical Length: Two to Three Paragraphs
FIRST PARAGRAPH: Now that you know your business inside and out, the time has come to
sell your investors (the judges) on your idea. Start making your business idea interesting and
compelling by describing the standard experience and contrast it with what your business can
offer.
SECTION 1 EXAMPLE #1
Laser Engraving Business: Most of us have seen too many souvenir coffee mugs, key
chains and baseball caps to get very excited about getting another one. But imagine you
received your photo engraved on a piece of driftwood after a beach party, or an engraved
fishing lure from your buddy’s bachelor party. How about an engraved spatula from your job
flipping burgers? Or an engraved wine bottle from your grandparents 50 th anniversary party?
Those are items you’re likely to want to hang on to!
Children’s Party Organizer: Do you remember that birthday party when you were 8
years old and everyone ended up crying and your parents had to come pick you up early? No
parent wants to face that scene – but they don’t always have the time or energy to plan the
really great party that they want their child to have.
Twisted & Toasted: Page 3 paragraph 1
NEXT PARAGRAPHS: Briefly give your reader an idea of who will buy your product or service,
how you will sell it and why your team can make it a success. Don’t give too much detail, just
enough to get your reader hungry to read the rest of your plan.
SECTION 1 EXAMPLE #2
Laser Engraving Business: The technology for engraving has changed just like the tech
for the rest of our lives, opening up the opportunity for creativie income generation for those
with imagination. And the market is there, from businesses like casinos and retail stores, to
fundraisers, school events, even the farmer’s market.
The combination of technical ability and skills in graphic arts makes the owner of this business
uniquely suited to lead this business team in establishing a strong addition to the local
community.
25
Business Plan Preparation Guidelines 2011
SECTION 1 EXAMPLE #2
Children’s Party Organizer: Parents are increasingly juggling family and work lives, and
the trends and technology that children are so tuned into are changing faster than ever. How
can parents keep up and give their children the happy experiences they remember from their
own childhood without spending a fortune on games and toys for one event?
This business is owned by a sister/brother team that has years of experience putting on
memorable parties and events for groups of children of all ages. Possessing the drive to create
a successful business and a “second sense” about kids, they will be able to help make the lives of
Humboldt County parents a little easier and more fun.
26
Business Plan Preparation Guidelines 2011