A Business Plan Checklist

Business Plan Checklist Key Questions to Answer

Organization Executive Summary  Who will manage the business?  Why will the business succeed?  What qualifications do you have?  What do you want to start (or change)?  How many employees will you need?  How much money is required?  How will you structure your organization?  Why is the venture a good risk?  What are your plans for employee salaries, wages and benefits? Business Description  What consultants or specialists will you need?  What type of business are you planning? How will you use them?  What products or services will you sell?  What legal form or ownership will you choose?  What type of opportunity is it (new, part-time, Why? expansion, seasonal, year-round)?  What licenses and permits will you need?  Why does it promise to be successful?  What is the growth potential? Critical Risks  How is it unique?  What potential problems could arise?  How likely are they? Marketing  How do you plan to manage these potential  Who are your potential customers? problems?  How large is the market?  Who are your competitors? How are their Financial businesses positioned?  What is your total estimated business income for  How will you price the product or service? the first year? Monthly for the first year? Quarterly  What advertising and promotional strategies will for the second and third years? you use?  What will it cost you to open (expand) the business? Research, Design, and Development  What will your personal monthly financial needs  Have you carefully described your design or be? development?  What sales volume will you need in order to make  What technical assistance have you received? a profit during the first three years?  What development needs do you anticipate?  What will be the break-even point?  What are the costs of development?  What will be your projected assets, liabilities, and net worth on the day before you expect to open? Manufacturing/Operations  What are your total financial needs?  Where will the business be located? Why?  What are your potential funding sources? How will  What are your facilities needs? you spend it?  What are your equipment needs?  How will the loans be secured?  Are there other needs for production?  What activities are required to produce your Milestone Schedule product or service?  What timing have you projected for this project?  Who will be your suppliers?  How have you set your objectives?  What type of transportation is available?  Have you set up your deadlines for each stage of  What is the supply of available labor? your venture?  What will it cost to produce your product or  Is there a relationship between events in this service? Per unit? venture? Appendix  Have you included all important documents, drawings, agreements, and references? Demystifying the Business Plan Process: An Introductory Guide Donald F. Kuratko, Ph.D. Small Business Forum, Winter 1990 Business Plan Checklist

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1 BALANCE SHEET (Date)

Current Assets

Cash $______Accounts Receivable $______Inventory $______Supplies $______Prepaid Expenses (insurance) $______Other Currents $______

Long-term Assets

Land/Buildings $______Equipment $______Machinery Furniture & Fixtures $______Other Long-term Assets (less depreciation) $______

TOTAL ASSETS $______

Current Liabilities

Accounts Payable $______Salaries Payable $______Taxes Payable $______Interest Payable $______Notes Payable (due within 12 months) $______Other Current Liabilities $______

Long-term Liabilities

Notes Payable to Stockholders $______Mortgage Notes Payable $______Other Long-term Liabilities $______

TOTAL LIABILITIES $______

Owner's Net Worth

Invested $______Retained Earnings $______Drawing $______

TOTAL NET WORTH $______

TOTAL LIABILITIES AND NET WORTH $______

Assets = Liabilities + Net Worth

2 Projected Income Statement: Year 1 (By Month) and Changes to Cash

Yearly 1 2 3 4 5 6 7 8 9 10 11 12 Total Income Sales * Gross Profit Operating Expenses Salary/Wages Payroll Taxes Employee Benefits Rent Telephone Utilities Car/Delivery Supplies Marketing Legal/Accounting Insurance Property Tax Interest Other Depreciation* Total Operating Expenses Net Profit Before Income Tax

Changes to Cash Less Soc Sec & Income Tax Less Principal on Loan Less Owner’s Draw (take home) Plus Depreciation Total Changes to Cash *Cost of Goods: Costs associated with the units sold such as cost of inventory, raw material, shipping, storage, packaging and production-related labor. *Depreciation: For tax purposes, an allowable deduction made for a loss in assets’ value (wear, age).

Sources and Uses Statement

Sources of Financing

Investment of cash by owner #1 $______

Investment of cash by owner #2 $______

Investment of non-cash assets by owner #1 $______

Investment of non-cash assets by owner #2 $______

Bank loans to business (short term) $______

Bank loans to business (long term) $______

Bank loans (personal) $______

Small Business Administration loans $______

Other: ______

Total Sources of Financing $______

Uses of Financing

Land $______

Buildings $______

Equipment $______

Remodeling $______

Initial inventory $______

Working capital to pay operating expenses $______

Non-cash assets contributed by owners $______(Use same amount as in Sources)

Other assets: ______

Total Uses of Financing $______