Business Plan

Written by Neva Quantz

Implementation Plan (1-3)

Implementation Activities and Dates
List in detail how you are going to implement each section of your business plan.
• When will you take possession of your office building?
• What date will you hire your first employee?
• When will you qualify for licensing?
• When and what advertising are you going to do?
• When will your first product/service launch?
• When will you require financing?
• What new products/service will you develop and when will you launch them?

Financial Plan (4-8)

Make sure your financial projections are believable. A good rule of thumb is to overestimate your expenses and to underestimate your income. For investors, the financial section is the most important section of the business plan because it identifies your financing needs and shows the profit potential of your business. A good financial plan should give the reader confidence that you really understand your business. So be sure to test how reasonable each of your expectations are. Don’t be overly optimistic or overly pessimistic. Take into account the full costs of running your business. Be realistic. Be credible.

Projected Costs and Project Funding
• Do you have start-up costs?
• How are you planning on funding them?
• What about advertizing? How will you fund this?
• New production? How will you fund this?
• Expansion?

First year projected Cash Flow
Project out your venture’s 1st year annual cash flow. Supporting documents may be added to the Appendices.

Projected (pro-forma) 3 yr cash flow, Balance Sheet, & P&L Statement
• Project out your venture’s 2nd & 3rd years annual cash flow
• Your Investor may require a five year projection.
• Supporting documents may be added to the Appendices
• Provide a projected Balance sheet for each year showing your venture’s Cash Position, Accounts Payable, Accounts Receivable, Assets, Liabilities and Equity you plan on infusing into the venture
• Provide a projected Profit and Loss Statement showing your projected income and projected expenses.

Discussion of Projected Net Income
• Discuss accurately the forms you have developed in the previous section.
Can you render a clear assessment of your venture’s projected financial situation? Can you back it up or is it “pie in the sky”?

Investment Request
• Clearly define the investment, if any, that you are requesting.
• What will it be used for?
• What terms would you require?

Next month we will conclude the BODY portion discussing the Conclusion and the Appendices Sections of a Business Plan.

Excellence is never an accident: it is the result of high intention, sincere effort,
intelligent direction, skillful execution and the vision to see obstacles as opportunities.


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