Executive Summary

The basic components of this plan are:

Competitive pricing
Expand the markets
Increased advertising
Lower our unit costs,
Thereby achieving higher profits.

Sign contracts
Increased advertising
Increase office staff

Financial Goals

	Year 1	Year 2	Year 3
Sales	$1,000,000	$1,400,000	$1,600,000
Net Income	$25,000	$250,000	$375,000
Earnings per share	.01	.12	.14

Management

[Education}

Short Biographies

President

Chief Financial Officer

Vice President

Joe Dokes, Secretary, Executive Vice President and Director. Mr. Dokes supervises the company’s sales and implementations to its largest corporate customers, including US West, Great West Life Insurance, etc. Mr. Dokes has served as Secretary and a Director since February 1988, Vice President of Operations from February 1988 to December 1988, President of the Company from December 1988 to January 1990 and Vice President of Contract Sales since January 1990. He has been involved since 1986 with the private company originally formed as Random Excess, Inc., where his duties included managing the purchasing and sales department. From November 1984 to May 1986 he managed the sales department at Integrated Management Systems, Inc. From June 1983 to October 1984 he was a buyer for Adams County, Colorado, School District 50. Mr. Dokes attended Oklahoma State University in 1980 and 1981 and Trinidad State College in Trinidad, Colorado in 1981 and 1982. He did not receive a degree from either university. Mr. Dokes is employed by the Company on a full-time basis.

Vice President

Responsibilities

Richard Roe, CPA, Chief Financial Officer - Responsible for financial operations, accounts payable, accounts receivable, interaction with auditors, investor relations. Salary - $40,000

[This Page is for an Organization Chart, if applicable.]

[Company] History

The main goal of this company was to [explain].

This venture was very successful in generating and increasing sales, but was not effective in achieving profitability. The main reason for this was the amount of actual overhead experienced. This overhead was not initially anticipated by me at the beginning of that venture. Items including credit checking, warranty program management, extensive travel, maintaining warehouse stock and the management and expense of a national sales force were expenses not originally forecast or expected. With this level of overhead, it was mathematically impossible to achieve profitability.

or:

OR:

§ A team consisting of [list names and primary responsibility. (i.e John Doe - Marketing) has been formed.

§ A prospective [customer/client] list has been drawn up.

§ Strategy meetings are being held every Monday, Wednesday and Friday evenings.

§ This business plan has been drawn up.

[Product/Service] Description

§ Offers the lowest price on the market

§ Is the most technically advanced

§ Offers more useful features

§ Saves them time and money

§ Offers our users better value per dollar spent

§ Provides an alternative way to achieve a similar task.

§ Provides a service which is not presently available in this area.

§ Is strengthened by a team with combined experience of XX years.

§ Saves them time and money

§ Provides an alternative, cost effective way for them to realize a similar goal.

Overnight delivery
Cold storage
Incorporate preservatives
Shipment within two weeks to distributors.
Specially padded boxcars.

Hiring staff specialized in these new areas.
Increase our continuing education and training expense.
Adding complementary lines.
Make regular investments in new equipment.

Objectives

Long Term

Short Term

First Year XX%
Second Year XX%
Third Year XX%
Fourth Year XX%

Budget for complete computer training for appropriate applications.
Set up, Maintain] employee benefit program for continuing college education.
Budget for necessary seminars and/or continuing job-specific education.
Maintain state-of-the-art accounting system for careful tracking.
Monthly reports on financial status vis-a-vis the industry.
Aggressive recruitment of the best technical staff in the industry.
Support company involvement in various local and national charity events.

Competitors

Strengths:

§ Location - next door to supplier factory, on major artery, close to terminal, etc.

§ Pricing - Low cost producer, known for aggressive pricing policy.

§ Delivery - ships overnight to anywhere in the world.

§ Management - Everyone has an MBA from Harvard.

Weaknesses

§ Service - takes more than 3 months to receive spare parts.

§ Dedication - If it’s sunny, they’re on the golf course or ski slope.

§ Machinery - Slowly approaching obsolescence unless replaced within six months.

§ Overhead - Spend lavishly on corporate dining room, limousines and champagne.

Competitive Advantages

Innovation

Summary

§ increase service

§ increase advertising

§ reduce prices

§ increase profits

§ increase selection

§ increase customer service

§ increase advertising expenditures

§ increase profits

§ increase selection of services offered

Pricing

OR:

Specific Markets

Market #1

th century when computer modeling showed that there could be some enhancements made to the basic widget. The market for widgets has been generally steady with market growth closely following the typical population growth. At this time there are approximately 1,500 companies worldwide making comparable simple widgets.

Growth Strategy

Market Size and Share

Other Markets

Targeting New Markets

§ Customer contact - find out their needs

§ Look for complementary products

§ Trade shows

§ World Trade Center “Network”

§ U.S. Government trade leads

§ State Government trade leads

§ On-line computer prospecting and qualification (DIALOG, D&B, etc.)

§ Market surveys

§ Research & development

Location

RETAIL EXAMPLE:

The traffic flow has been rated at high.
The rent is below market
The building has the necessary facilities to operate this business.
The location is convenient for our customers.

OTHER SAMPLE:

The building is structurally compatible for our use.
The rent is below market
The building has the necessary facilities to operate this business.
The location is convenient for our freight companies, suppliers, clients and employees.
Possibility of expansion in the area.

Manufacturing Plan

SAMPLE:

A&M Machines $XXX

Service Contract $XXX

Research & Development

SAMPLE:

Historical Financial Data

See “Attachments”

SAMPLE:

Income Statement

Balance Sheet

Asset Worksheet

Ratio Analysis

Financial Standards

Proforma Financial Data

See “Attachments”

Proforma Cash Flow Analysis

SAMPLE:

Percentages as indicated.

Rent: Building rental at $12/square foot.

Utilities: Water, gas, sewer, trash, electric

Telephone: Local, long distance and cellular

Salaries: Executives.

Payroll: Hourly, non executive

Withholding: Figured at XX %.

Trade, magazine, direct mail, etc.

Figured at 10%.

[Explanation]

State Taxes: XX%

Federal Taxes XX%

Terms to customers: 2/10, n/30 (only to qualified accounts).

Terms from suppliers: Suppliers offers 3% cash discount.

Sales Forecast

SAMPLE:

Year 2 Year 3

Product 1: XX% XX%

Product 2: XX% XX%

Cash Flow Variables:

SAMPLE:

Income Statement

Assumptions:

Expenses: Totaled from Cash Flow Analysis spreadsheets.

Freight: Paid by customers.

Risks & Variables:

SAMPLE:

Proforma Balance Sheet

Cost Control

SAMPLE:

Ratio Analysis

Financial Standards

Breakeven Point

SAMPLE:

Profit Revenue Fixed Costs Variable Costs

$0 $20,000.00 $3,900.00 $16,100.00

Effects of Loan or Investment

SAMPLE:

§ Purchase of DEF Machine, Model # 333058 including installation - ($150,000)

§ Working capital - ($50,000)

§ Leasehold improvements - (est. $15,000)

§ Laboratory equipment - Beakers, test tubes, petrie dishes - ($1,500)

§ Startup costs - legal fees, filing fees

§ Inventory -raw materials - ($25,000)

§ Delivery trucks (GMC Model 80, $10,995)

§ Computer equipment - 15 Austin 486/33 Winstations - ($40,425)