New CSP: suggestions for a Business Plan outline

(Core headings & content taken from WSU Small Business Dev Center’s template for a Business Plan)

BUSINESS PLAN OUTLINE

 Table of Contents

Develop one page showing the topics and page references.

 Executive Summary

The Company

� What type of business (CSP & services) do you own or propose to own/run?

� What is the current stage of development (start-up, expansion)?

� What is unique about your service?

 Keys to Success:

� What will be the critical keys to success for your business/services?

 Statement of Funding Summary

� Summarize the financial projections. (Include start-up expenses, yearly gross profits, net profits, break-

even, return on investment, and cash flows.

 Description of Business

Company Ownership

� Who are the principals and what are their proportions of ownership?

� How is the business structured (corp., LLC, etc.)?

� What is the current status or projected opening?

 Description of Product/Service

� Describe your services(s).

� Discuss any opportunities for the expansion of services.

� Do you have letters of intent or commitments from people willing to be staff for your agency?

 Company Location and Facilities

� What is your proposed location and why did you choose it?

� Will the building be rented, leased, or owned?

� What are the terms of the contract? (Include copies of supporting documents in the appendix.)

� What renovations will be needed and at what cost? How will they impact your lease? (Include quotes in

appendix.)

� How much can your business expand before you will be forced to move or add on to the present

building?

� What equipment and furnishings will you need (i.e. desks, chairs, computer hardware and software, etc.)

� Where will locked files/information be kept.

 Licenses/Permits/Regulations

� What licenses or permits are you required to obtain? How long does it take to get them?

� Do you have a registered trademark for the name of your company? (Include supporting documents in

the appendix.)

� Is your business affected by zoning, ADA, OSHA, Fire Marshall regulations?

 Insurance/Bonding

� Describe the insurance coverage (i.e. liability, property, workers compensation, etc.) you have to protect

both the company and yourself

� Will you/your employees need to be bonded?

� Will your company provide employee benefits for you and/or your employees? Explain, and include

copies of supporting documents in the appendix.

 Start-Up Costs

� Create an itemized list of anticipated start-up costs.

 Market Analysis

Target Market and Demographics

� Who are your potential consumers?

� What is your geographic market area? How many potential customers are in your market? Document the

sources of your estimates.

� Identify potential market segments. List potential consumers, if you know this.

� What percent of the market do you have now? How much do you think you will have in the future?

Document the sources of your estimates.

� What will influence the choice decisions of your consumers: quality, service, personal contacts,

or some combination of these factors?

 Competitive Analysis

� Define the current advantages and disadvantages of your major competitors’ services. Get to know the

competitors' services by calling, sending someone to the agency to see /discuss services, looking at their

advertising, etc.

� Who is the Director of Services manager/leader?

� Identify substitute services.

� What is the trend in the business/industry? (Are revenues growing, stable, or in decline?)

 Competitive Edge

� What makes your service unique?

� What features or services will you offer that will justify your price compared to competitors' prices?

� How will you attract and keep your share of the market?

� Explain all that apply: customer service, convenience, product quality, price, location, promotion,

Persuasion personal selling, distribution, accept credit cards/checks, extend credit. What is your credit

policy and payment terms?

� What are your service policies?

 Sales Forecast

� Describe the potential annual growth of the total market.

� Total market projections should be made for at least three years.

� Discuss the major factors affecting growth (waiting lists; etc…).

� Chart monthly sales forecasted (by market segments) for the first year and annual summaries for the

second and third.

 Marketing Strategy and Implementation

Marketing Plan

Promotion Strategy

� Explain the methods the company will use to appeal to the consumers (i.e. TV, radio, journals and

magazines, direct mailing, CDDO, etc.)

� Describe the promotional literature, brochures, and promotional items proposed or developed.

� What are your marketing tactics (i.e. community involvement, association memberships, customer

database, media relations, special events, etc.)?

� If the company decides to use the services of an advertising agency, describe what the agency will be

doing and the costs involved.

 Pricing Strategy

� Present your pricing strategy for any non HCBS services.

� Present why this strategy will enable you to market your services, maintain and increase market

share in the face of competition.

� Compare your services/pricing policy with those of your major competitors.

� If the price is higher than the competition, justify it on the basis of newness, quality, warranty, and/or

service.

� If the price is lower than competition, explain why and how you will maintain profitability (lower

Manufacturing or labor costs, lower overhead, lower material costs, greater effectiveness, etc.)

� Describe any discount allowance for prompt payment or volume purchases.

 Distribution and Sales

� Describe the methods (internal sales force, sales representatives, distributors, etc.) that your company

will use to make sales and distribute the product or service (initial and long term).

� If a direct sales force is to be used, indicate how it will be structured and at what rate it will be built up.

� Discuss the margin that will be given to salespeople, wholesalers, and retailers. Compare the methods

and margins with the ones used by the competition.

� Prepare a table indicating the build up of dealers and representatives by month and expected sales to be

made by each dealer or rep.

 Strategic Alliances

� Explain your strategic alliances, such as co-marketing, co-development, commission and cooperative

arrangements.

� Is your fate tied to that of any other company?

� Can you link your promotion or distribution strategies to another company, or companies?

 Human Resources

Management Summary

� List the members of the management team and summarize their experience. Describe their functions

with the business. Include resumes in the appendix.

� Note management gaps and weaknesses and specify how they will be corrected.

� List by name and firm the professionals you will engage to assist with management functions (i.e.

lawyer, accountant, outside consultant, etc.)

� Who is on your board of directors and what do they contribute to the business? Who are your major

stockholders and what is their role in management?

� Who will be your Director of Services; who will do Medicaid billings; etc….

 Organizational Structure

� Describe your organizational structure and include a brief description of who does what. Include an

Organizational chart if necessary.

� List proposed salaries and wages. Are they consistent with industry norms?

� If you will be using independent contractors, have you discussed this with the Kansas Department of

Revenue and/or the IRS to make sure they are not considered employees?

� Describe the local labor market in terms of local unemployment rates, education, background and

experience. Where will you find your new employees?

 Personnel Plan

� List titles or title groups of all personnel.

� Chart three years of projected costs for personnel (salary and benefits) Include the addition of new

personnel with business growth as well as pay increases.

 Financial Plan

Important Assumptions

� List important assumptions that have an effect on your projections such as: short/long term interest rates,

estimated payment/collection days, inventory turnover, income tax rate, percent costs for personnel

benefits, sales on credit, expenses in cash, etc.

 Break-Even Analysis

� Provide figures for fixed costs, unit price, and unit variable costs, and indicate the level of sales where

Your gross profit equals your operational costs.

� Include explanations and assumptions.

 Projected Profit and Loss

� Detail by month for the first year.

� Provide yearly summaries for the second and third years.

� Existing businesses should supply year-end P&L statements for the past three years.

� Include explanations and assumptions.

 Projected Cash Flow

� Detail by month for the first year.

� Provide yearly summaries for the second and third years.

� Include explanations and assumptions.

 Projected Balance Sheet

� Detail your start up-costs or include balance sheets and/or tax returns for the previous three years and a

Current balance sheet and income statement.

� Give detailed projections of your assets, liabilities, and capital for the first year.

� For an existing business, include a capital equipment list, complete with purchase price and depreciated

values, a detailed inventory listing with unit prices included, and a list of aged accounts receivable and

accounts payable.

 Business Ratios

� Profitability Ratios

� Activity Ratios

� Liquidity Ratios

� Other Relevant Ratios

Appendix

� Personal Resumes for all principals, partners and officers.

� Personal financial statements for all principals, partners, and anyone owning 15% or more of the

company.

� Letters of intent from prospective suppliers or customers.

� Copies of all licenses, permits, leases, insurance policies, Contracts, agreements, deeds, certificates and