Free business plan workbook

This workbook asks you many questions. The more you answer the more you understand of your new business.

If some questions do not fit to your kind of business - just delete them. If you miss important questions - then insert them. The workbook is that flexible. You are the one in charge.

This workbook is short and concrete and to benefit fully from the plan you should read the booklet: The Dynamic Business Plan.
Download it at www.dynamicbusinessplan.com

A business plan
A business plan is a description of the firm you are to establish and a plan for how to run and develop it. The plan will gather up the threads from all your other preparations and in this way guarantee that you get around all aspects at business start.

A business plan is also a basis for negotiations with the bank and possibly business connections to convince them to give credit or a loan. It can also help you to convince family/ friends/ parents that it is a serious plan to start your own business.

Follow the chronology of the workbook and you will bit by bit build your own business plan.

Good luck



Mr. Mogens Thomsen, Senior Business Consultant
Proprietor of www.dynamicbusinessplan.com



Front page
Make clear that this is a business plan. If convenient place business name, logo and names of authors here.


(Put in the name of your new business)




Contents
Make it easy to the reader to manage through the plan and look up the different items.


Content

· Background information
· Summary
· Business Concept
· Personal resources and goals
· The product or service
· The market
· Sale and marketing plan
· Management & organisation
· Development of the business
· Budgets
· Financial requirements
· Appendices



Background information

The reader is curious to know who you are. When he continues to read the plan he will bear in mind the impression he got from this first glance of you.

Name/s of owner/s
Address
Telephone
Email
Date of birth
Education
Recent job functions


Summary
The summary should briefly describe the business and highlight its purpose. It must contain the most important information from the business plan.

Place the summary in the beginning of the business plan, but make the summary as the last thing!

Main items:

- Who am I / Who are we?
- What does the firm produce?
- What customers and how many?
- Turnover the first year?
- Profit the first year?
- Needs for funding?

Business concept
A good idea is only a good business idea if you are able to make enough money from it. Sufficient money for you and your family to make a decent living.

Once you have got an idea, in most cases it needs adjusting and further development before it turns into a commercial concept. If the idea is not convertible into a commercial concept then is it not advisable to start a business based on the idea.

Below are topics to help you develop your idea.



The business concept / raison d’être:


Ultra short description of your business and its products (Elevator pitch):


Customers:


What is special about your business compared to your competitors:





Personal resources and goals

What resources can you offer the business? Who are you to enrich the business with dynamism and force?

Below are some useful points of consideration for your self-evaluation:



Your family network


Economy:


Know-how about the product/the services:


My weak points in relation to the business:


My working tasks in the business:


Future prospects for business size:


The product/services

The lifeblood of your business is your service or product. Therefore it is of great importance that you analyse the service/the product from different angles.


The business has the following products/lines/service:
1:
2:
3:


Differences in products/lines/services compared to your competitors:
1:
2:
3:

Purchase frequency/product life span:
1:
2:
3:

Calculation of product/service
Selling price ex. Sales tax
- My cost price:
- transport/custom etc.
= contribution margin:


Product price:
My price:
Market price



Name of contractors:


Kind of distribution of the product:


Name of the trade association:



Other businesses/tenders in this trade:


Number local/total:




Product flow forecast:
The market
When you have decided what product/service you want to sell then you have to localise potential customers. You must do this before making any marketing initiative.
Consider the description of the market as the part of an iceberg lying under water, while the marketing, i.e. brochures, visiting card, advertisements among others are the tiny part of the iceberg above water. In order to make good marketing, it is necessary to obtain a thorough knowledge about the market/customers.



The typical private customer:
Man/woman:
Age:
Education:
Occupation:
Lifestyle:


The typical business customer:
Line of business:
Size/staff:
Age:
Number:


Geographical limits:
In your own country
Foreign countries:


Realistic number of customers:
Arguments:



Average consumption in cash per customer:


Important competitors:
1:

2:


Important competitive parameters on the market:
1:

2:

3:


Assessment of the possibilities on the market for your business:



Threats that may destroy the possibilities:





Sale- and marketing plan

Hopefully you have been very concrete in your description of the market. It will make your work with sale and marketing much easier.
If you know exactly what customer you want to reach then it is easier to choose what means you need in making the marketing and sale activities.


Possible sale- and marketing activities from start:

What is to be done? How? Who? When? Price?

Direct mail:
Internet:
Customer visit:
Telephone sale:
Advertising:
Publications:
Signposting:
Presentation material:
Trade Fair:
Other sort of advertising:
Annual costs for marketing:
Opening market activity:
Price:


Public Relation (PR) at the opening:
“The story” to the journalist:


Relevant medias:


Contact persons:


Press release:

Management & organisation

Describe here how your business is going to work. Take into account what it costs to arrange, furnish and run the business.


Name of business/address/phone no/ fax/ e-mail/ web


Legal status of business:


Owners:


Bank:


Accountant:



Business policies:
Price policy:
Discount policy:
Method of payment:
Guarantee service:
Service:
Staff policy:


Procedure for accountancy - and administrative routines:
Daily accounting:
Sales tax settling:
Send out accounts:
Follow up on unpaid accounts:
Wage settling:
Quarterly accounts:
Order goods:
Write letters to customers/business connections:
Telephone reception:


Insurance subscriptions:
(Industrial injury, trade responsibility, product, moveable, transport of goods, fire, house contents, travels, frozen foods, computers etc)


Name of insurance company:
Prices:


Business partners /consultants

Research and Development

It is often difficult to think of strategic or long-term planning before you have started your business. But it is a strength as a business owner to be able to forecast the outlines of a bigger and prosper business than the one you start today.



Business appearance in one and in three years



The product or service in one and in three years



How is your product or service in one and in three years?



Customers in one and in three years



Financial forecast for year three and year four



Other goals with your business





Budgets
Budgets mean to know how much you need to sell in order to cover costs in other words to put figures on the plans you have made in the previous paragraphs. The more concrete your work has been the easier it is to budget.
The budgets can also help you to concretise your plans and ideas – so go back to your plans if the budget shows that they are unrealistic – or visa versa.
Draw up at least the first two budgets as a part of the business plan.


Establishment budget
The establishment budget will show how much money you need to start your business. It is quite individual what a business needs. A business that produces 10 m cement pipes needs a lot of money for machinery, raw materials and buildings. On the other hand a computer consultant losing software problems only needs the knowledge he/she already has.
Download an establishment budget in excel-spreadsheet from: www.dynamicbusinessplan.com

Operating budget
The operating budget shows the income and the costs you expect in the business, when it has started. The more realistic you make your plans the easier it is to draw up your operating budget.
During your work with the operating budget you often have to go back and change your plans. Your wishes and expectations are not always keeping with reality.
Download an establishment budget in excel-spreadsheet from: www.dynamicbusinessplan.com

Liquidity budget
The liquidity budget will monthly show whether you have money in the bank to pay the expenses you know you will get. In a business you call this the flow of payments.
It is easy to make the first two budgets if you have made a plan for your business. But it is much more difficult to make a liquidity budget as it demands an accountants to make out the many amounts in the budget.

Luckily this is the last budget you have to draw up. Spend your time on the first two budgets and see if you have time to make the liquidity budget.
Download an establishment budget in excel-spreadsheet from: www.dynamicbusinessplan.com
Establishing budget
Below you find some of the most usual expenses when starting a business. Delete the ones you do not encounter in your new company.

Remember: The less expenses the better. All expenses have to be paid from the profit in your new business.

Premises
Rent
Deposit for purchase of premises or business
Deposit (e.g. 3 months rent)
Goodwill - payment to the former owner for his work at the premises
Furnishing and renovation

Production equipment
Machinery
Tools
Other things

Shop fittings
Cash register
Counter
Other things

Office fittings
Furniture ( desk, swivel chair, shelves etc.)
Computer (printer, network)
Telephone
Fax machine
Copying machine
Other things:

Purchase before start
Raw materials/semi manufactured
Manufactured goods (stock)
Stationery
Other things:
Car
Deposit
Other acquisition costs

Counsellors
Lawyer
Accountant
Other

Marketing
Writing paper, business cards
Brochures
Advertisement
Signposting
Opening reception
Other things

Other expenses
Application for a patent/registration
Other things

Total costs is:

Operating budget
Below you find different types of expenses. Maybe your company does not have all the expenses. The just delete the expense. Maybe you have another expense. Then just put it in the budget. The budget must reflect your company.


Sale / Turnover
Sale of product / service no. 1
Sale of product / service no. 2
Sale of product /service no. … Estimate sale for each major product /service

Variable costs
Materials - raw materials and finished products which you use for production or sale
Salary - only for workers in production
Transport costs - and costs related to transport of the raw materials and finished products

Fixed costs
Wages - for staff in shops and offices
Rent - for buildings
Electricity, heat, water
Renovation and maintenance of buildings
Cleaning
Car service/mileage allowance
Travel costs
Stationary telephone
Postage and charges
Mobile phone
Internet-connection
Web site subscription/hosting and upgrading
Marketing/advertisement/advertising
Meeting expenses
Insurances
Computer equipment
Computer network
Leasing-expenses
Minor purchases
Maintenance
Accountant
Lawyer
Other consultancy
Unexpected costs 5% of costs

Interest
Interest on bank loan
Interest on overdraft facility
Other interest

Write-off /depreciation
Plant / buildings
Machinery
Other things

You will find a excel spreadsheets with a pre-defined Operating budget at www.DynamicBusinessPlan.com
Funding
Funding means: Where can I get/borrow the money I need for my business?
First you have to find out how much money you need.

Necessary initial capital:
(Look the establishment budget)

Necessary liquidity:
(Liquidity need is worked out from the liquidity budget)

Total funding needs:
(Establishment + liquidity)


Expectation/commitment to get a loan/grant from:
Owner:
Family:
Bank loan:
Overdraft facility:
Total funding:

Loan guarantee:
Name, address

Investment funding (buildings/machinery)
Savings/capital:
Bank loans:
Credit institution loans
Private loans
Other loans
Investors
Grant
Other
Total




Appendices
Enclose appendices important and relevant to the business. E.g. technical specifications or drafts, written order commitments, references, collaboration etc.