BUSINESS PLANNING - THINGS TO CONSIDER

Take a few minutes to consider these key parts of a business plan.

I. Business Summary

? What is the name of your business?
? What is your product or service?
? Who owns/operates this business and what are their backgrounds?
? What is its legal structure (sole proprietorship, partnership, corporation or cooperative)?
? Have necessary permits and licences been obtained?

II. Operations

? Where will your business be located?
? Are there local noise, environmental or zoning laws to consider?
? Will you lease or buy space? At what cost?
? Describe the facility (parent's, spare bedroom, rented office, etc.)
? Is there enough space for all your "stuff" (including stock and raw materials)?
? Does the facility have adequate heating, electrical, plumbing, washrooms, safety equipment and ventilation?
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? Is it wheelchair accessible?
? What renovations must be undertaken?
? Is there room for customers (including parking)?
? Is the location visible to, and convenient for, potential customers?
? What are your planned hours of operation?
? Will employees require specialised skills or training?
? What wages will be paid to employees?
? How many employees will you have?
? What kind of insurance is needed for your building, equipment, employees, customers?
? Who will supply the materials needed to run the business?
? Is there a time of year these supplies are easier or harder to get?

III. Market

 

? What price will be charged for your product or service?
? What geographical area will the business serve?
? What businesses are already providing a similar service or product in that area?
? How is your product or service different from your competitors?
? Why would people choose your product over those of your competitors?
? How will you promote your product or service (signs, flyers, radio, etc.)?
? What is your target market (age, sex, education, income level, marital status, occupation, interests and needs of your potential customers)?
? How many of these potential customers are in the proposed geographical area?
? Are there popular trends which could help or hurt sales?
? What are your sales estimates?
? What months of the year are most popular for your product or service?

IV. Financial Information

? What are your projected start-up costs? These are one-time costs such as land and building, equipment and machinery, renovations and legal fees.
? What are your projected ongoing operating costs (salaries, utilities, supplies, rent, insurance, property taxes, etc)?
? What are your estimated sales for each month of your first year?
? What are the anticipated differences between your costs and revenues for each month of the first year?
? What is your break even point (the number of products or services that must be sold to just cover your costs)?
? How much of your own money (equity) are you willing and able to invest?
? What additional financing will be required from outside sources such as bank loans and other investors?