Business Plan Part 3

1. Decide on legal form of business, select one of the following and justify choice
Sole proprietorship
Partnership
Corporation
2. Describe management team – who are they?
Positions they hold in the company
Develop organizational chart
Include resumes in appendix
Salaries paid
Responsibilities of each position
3. Identify outside support and include names, positions, addresses and phone numbers for the following: (can be personal contacts)
Banker
Lawyer
Consultants
Accountant
4. For operational plan, develop staff work schedule for at least one month with labour costs.
5. Discuss insurance needs and costs and identify a company that fills the requirements.
6. Identify license needs and costs involved.
7. Discuss business risk factors
Cost structure
Product liability
Profit margin
Seasonal business
Complementary industries
Substitution
Suppliers
Customers
Personnel
Management
8. Break down the first year’s total yearly sales by each month and identify % used. Make sure there is a variation of sales for each of the months.
9. Project and justify your sales for the next 2 to 5 years.
10. Compile list of startup costs. Give sources where numbers were obtained.
11. Compile list of operating expenses. Give sources where numbers were obtained.
12. Discuss financial statements: income statements, cash flows, and balance sheets.
13. Justify growth and changes within business over the 5-year time frame.
The proposed business requires a minimum of a three-year bank loan not including any additional financing such as mortgage, gifts, or outside investment. A financial strategy needs to be included with the plan.
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