Business Planning Toolkit

Business Planning Toolkit Course
A special collection outlining ten steps to effective Business Planning. In addition, each section is supported with insightful leadership lessons and success laws passed down from the great leaders of the past.
Introduction - The Business Planning Process Part I - The Executive Summary 1-1 - Mission Statement Tools 1-2 - Mission Statement Examples Part II - The Company Description 2-1 - Market Analysis 2-2 - Competitive Analysis Part III - The Operations Structure 3-1 - Organizational Structure 3-2 - Management Qualifications Part IV - The Marketing Strategy 4-1 - Sales Management 4-2 - Business Resources Part V - The Service or Product Offer Part VI - The Key Risks & Obstacles Part VII The Use of Time Targets Part VIII The Funding Request Part IX - The Financials 9-1 Balance Sheet Review 9-2 - Income Statement Review 9-3 - Cash Flow Statement Review Part X - The Appendix Conclusion Never-to-End Business Planning
Courtesy of www.Leadership-Tools.com
Copyright 2006 All Rights Reserved.
Business Planning Toolkit

Free Business Planning Course
INTRODUCTION Welcome to our free business plan example course; a complete business planning toolkit - courtesy of Leadership-Tools.com. A good business plan must always be a living document, a work in progress. Even long running, well-established businesses operate under a clearly understood business plan. No different that any successful salesperson, management must have a firm grasp of their product or service, the state of their marketplace and the direction of the industry. As a leader and business owner, you must become that successful salesperson who knows everything that has to do with your business. In doing so, you will increase your chances for success and substantially limit your risk. Becoming an expert in anything isn't easy. It takes hard work and determination to acquire the skills and knowledge necessary to create and maintain a successful business plan. In addition to our quality free business plan example ideas and tools, this free course will walk you step-by-step through the process of building a rock-solid business plan. Section by section, we will walk together and learn what must be learned in order to start and/or improve your business. As you begin the business planning process, understand that it is an ongoing process; one that should be never-ending in order to stay ahead of ever-changing customer needs and increasing competitive challenges. As we move to each section, you will notice that in addition to covering the various sections, we've thrown in some important historic insights for your business success. These key life and business lessons have been shared down through the ages, from employer to employee, mentor to apprentice, father to son and mother to daughter. Pay special attention to the words of wisdom that is shared in the following "Words of Wisdom" section. A successful business is about more than just making money. An organization also has a great responsibility to serve and support the community that has blessed the business through its patronage.
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Business Planning Toolkit Course Provided courtesy of www.Leadership-Tools.com Copyright 2006 All Rights Reserved.
Words of Wisdom for Business Owners An Introduction:
For the person just beginning a new business venture, heed this warning - there will be innumerable problems that you will encounter and you will need persistence and determination in order to overcome these hurdles. Not only must you study the craft of business, you must make the commitment to learn from those businessmen and women who over the years have graciously shared what they have learned from making their own mistakes. Stand on the shoulders of these giants of industry who have gone before you; study their mistakes and work hard in order to avoid making the same errors they made. Remember that the greatest investment a business owner or team leader can make is in him or herself; and in those who he or she leads. If you suffer from a divine hunger for personal growth and self-development, then you ought to consider leading others in a successful business venture. There are many reasons that people fail in business, these errors include but are certainly not limited to: lack of education, knowledge or skill lack of effort or work ethic lack of passion or ambition lack of get-to-it-tive-ness and/or stick-to-it-tive-ness lack of grit, determination and persistence lack of tact or diplomacy lack of being able to say "No!" lack of a willingness to give back to the community it serves.
Master each of the above, and utilize the many free business plan example ideas to their utmost, and your chances for success is pretty well guaranteed. Ready to check out our free Business Planning Toolkit; complete with free business plan advice? Okay, let's get started.
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PART I
THE EXECUTIVE SUMMARY
"It's not the plan that is important, it's the planning." - Dr Graeme Edwards The Executive Summary is a critical part of your business plan. Here is where you provide a concise overview of your vision and how you plan to make it become a reality. This is the first section of the plan so it's imperative that you focus the reader and convince him to adopt your vision from the very beginning. More than any of the other sections that will follow, the executive summary is key to your success because you must explain to the reader why you believe that your business idea will be one that will succeed. In addition to the mission statement, which we will detail in the next section, the following content is included in the executive summary: Date business was established Names of founders and the functions each perform Number of employees Location of business, and any branches, franchises or subsidiaries Description of business premises Products produced or services rendered Banking relationships and key information for current investors Summary of company growth supported by financial highlights Summary of future plans for the organization
If you business is brand new, you will not have all of the information detailed above. Instead, you will need to focus your comments on your background and why you believe you have the necessary knowledge and skills to make your dream into a reality. Regardless of your supporting documentation, you MUST clearly communicate to the reader that there is a need for your product/service and that you have what it takes to bring it to the consumer and meet the expectation of your investors. Although the executive summary is located first in the business plan, it must be written last to ensure that all of your information is updated and complete.
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Words of Wisdom for Business Owners A Strong Appetite for Personal Growth "The best preparation for good work tomorrow is to do good work today" - Elbert Hubbard There is a false idea of what constitutes real genius and success. This myth is one of the key stumbling blocks that stand in the way of a person's success. There is a sense by too many that only those who are blessed by the almighty at birth; ordained to rise to greatness and lead others, have any chance of become the top in their field. This is absolute nonsense. The genius that has accomplished great things in the world, as a rule, is the genius of downright persistence and hard work. Focused and committed EFFORT is the one single thing that has always transformed the world. You can spot the person who is most capable of this unique sort of effort. The surest sign of the sort of genius that can accomplish things, is the one who possesses a hunger for achievement; a longing to become more, to be somebody of significance; to do something worthwhile in this world. It is truly astonishing how much power there is in an intense desire and determination to accomplish a thing, anything, no matter how easy or difficult it may be. As a rule, it is this intensity; that hearty appetite within us for achievement; that thirst for knowledge that must be quenched, which will measure our success in life.
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1-1 MISSION STATEMENT TOOLS

Mission statement definition tools are currently available for your use, free of charge. In the following information, well walk through why the mission statement is important to the future of your business.
"If you dont set your goals based upon your Mission Statement, you may be climbing the ladder of success only to realize, when you get to the top, youre on the WRONG BUILDING." - Stephen Covey The mission statement can be as short as a few words, or as long as a few sentences. The point of the mission statement is to make clear to the world what your organization is about. It clearly defines who you are and what you stand for. When a prospective employee is considering taking a position at your company, the mission statement should help that individual to make their decision. If a customer is entertaining doing business at your establishment, the mission statement may assist in their decision-making process. Ideally, the mission statement should be created by the entire team. Through focus group discussions, employees will add great value to the mission statement process. Only through a collaborative team effort, can the mission statement become the battle-cry of your organization. Make certain employees feel they had a large part in the creation of the companys mission. The biggest mistake made by organizations is that they spend a lot of time and resources in order to create a meaningful mission statement, then once completed the mission statement is never again discussed. Be sure to keep the mission statement at the heart of your organization. Revert back to the mission regularly during meetings. Post the mission statement on your internal documents and consider adding signage to support in mission statement in your offices. In order to assist you in creating a powerful and effective mission statement, we are providing the links to two mission statement definition tools for your immediate use. Each tool can be used at no charge so you have nothing to lose and everything to gain.
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Check out these two free mission statement tools:
Company Mission Statement Tool

http://www.nightingale.com/tMission_CompanyStatement.asp
(Copy & Paste to Browser)
Personal Mission Statement Tool

http://www.franklincovey.com/missionbuilder/index.html
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Words of Wisdom for Business Owners FOCUS = Steady and Persistent Thought "A single book has often aroused a dormant ambition." - Dr. Orison Marden What we allow our minds to focus on has a great deal to do with the level of success that we achieve. We have the ability to control a great deal of what comes into our minds by becoming an avid reader. A wise man once said, If I might control the literature of the household, I would guarantee the well-being of the state and the nation. It is impossible to estimate the value that the influence from books, magazines and audio tapes can have on our ability to focus. If you were to take a sheet of paper and list on one side all of the negative and unhelpful messages youve received through advertisements alone; then on the opposite side of the page you listed all of the quality books and assorted literature youve indulged in how would the two lists compare? If the list of bad easily outweighs the good, then this is definitely an area you must tackle. We must be in control of what we allow to come inside our head. If we do not control the messages we receive then we leave ourselves open to all sorts of negative impulses and bad habits. How many people are bankrupt today simply because they were influenced to buy anything and everything on credit? How many addicts are created each year due to the heavy promotion of over-the-counter drugs? The messages we receive do have an influence on us. Our mind and body can be either positively or negatively impacted based on the messages we allow in. Too many people do not regulate these messages. There is no system of gate keeping that is in place to protect and guide us as we are constantly deluged with product and service endorsements. You must be the gate keeper.
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1-2 MISSION STATEMENT EXAMPLES

Example of mission statement; part of our business planning course for aspiring leaders. In this section we will provide multiple examples of company mission statements so you get a clear sense of how important this is to the executive summary section of a business plan.
"First say to yourself what you would be; and then do what you have to do." - Epictitus As was stated in the previous section, the mission statement can be as short as a few words or as long as several sentences or short paragraphs. The main thing of importance is that the mission statement makes very clear to your employees, customers and business partners what it is that you stand for. In other words, the idea that you convey should be obvious to anyone reading the mission statement. Some large organizations tend to have a broad-based mission statement that allows managers in various departments to interpret to fit their area. Smaller companies tend to go with a very specific mission statement approach. Some very well known, and quite brief, example of mission statement that you may be familiar with include:
Wal-Mart - To always provide low prices, always. Disney - To make people happy. Nike - To bring inspiration and innovation to every athlete in the world. Microsoft - To enable people and businesses throughout the world to realize their potential. More lengthy example of mission statement include: Amazon - Amazon.com seeks to be the worlds most customer-centric company, where customers can find and discover anything they want to buy online at a great price. Studio67 - Studio67 is a great place to eat, combining an intriguing atmosphere with excellent, interesting food that is also very good for the people who eat there. We want fair profit for the owners, and a rewarding place to work for the employees.
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AMT - AMT is built on the assumption that the management of information technology for business is like legal advice, accounting, graphic arts, and other bodies of knowledge, in that it is not inherently a do-it-yourself prospect. Smart business people who aren't computer hobbyists need to find quality vendors of reliable hardware, software, service, and support. They need to use these quality vendors as they use their other professional service suppliers, as trusted allies. AMT is such a vendor. It serves its clients as a trusted ally, providing them with the loyalty of a business partner and the economics of an outside vendor. We make sure that our clients have what they need to run their businesses as well as possible, with maximum efficiency and reliability. Many of our information applications are mission critical, so we give our clients the assurance that we will be there when they need us. As you can see, the length of mission statements can vary widely. Whether you create a brief or expanded mission statement for your company is a personal choice. Just make certain that whichever way you go, the mission itself never gets lost in the process.
Words of Wisdom for Business Owners A Recipe For Wise Living
The business person who is always extending his horizon will never find him self in a rut. Those people who leave their mark upon the world, who broaden and enrich the life of their community are constantly growing. The world needs men and women who continue to grow and develop, regardless of their age. Every occupation, it seems, is crowded with people who have stopped growing; who spend valuable time complaining rather than searching for the next important challenge. The one who stops growing immediately begins to deteriorate. Not unlike a muscle that gives in to atrophy when unused for any length of time, so does the human spirit. Too often, young men and women graduate from college and then never again lay foot in a classroom. This makes one wonder if these misguided young folks learned anything at all while they were there. The choice to cease learning makes no sense at all.
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In the words of a former University President, Good, roundabout common sense has never been superseded by the college diploma. Alma Mater is no match for Mother Wit. Let LIFE be your classroom; continue to learn and grow; share the wealth of knowledge you receive with others. In doing so, your life will be lengthened and enriched.
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PART II
THE COMPANY DESCRIPTION
Free business plan write up instructions; a business planning course for aspiring leaders. In the following information, you'll learn the importance of The Company Description section of a business plan.
"None of us is as smart as all of us." - Japanese Proverb The Company Description is a high-level view of your organization; how all the different departments work together effectively to produce a quality product. Since this section is an overview, not all of the details are necessary. However, enough details do need to be included in order for any key remarks to be supported as fact. As in any section of the business plan write up, place yourself in the chair of the person who is going to be reviewing your business plan. Be prepared to answer any key questions that might come up related to the company description. Key information in this section will include how the organization works together to minimize cost and ensure maximum output of a quality product. Some key questions you should expect to answer in this section might include: Briefly describe when, how and why the company was formed, and where it currently is in its development. List any short term (less than one year) and long term (12 months or more) goals of the organization. Provide information on any major successes the company has achieved to date. Include information to explain difficulties that were encountered and how those challenges were addressed and eventually overcome. Describe how the organization was originally funded and how it has maintained its working capital since it began. Detail any major change in structure, ownership, management or other key personnel that has occurred within the past 12 months.
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Words of Wisdom for Business Owners Why Raise Up To A Higher Power Ideal? "He who has a perfectly balanced mind will naturally express in his life the principles of the Golden Rule." - O.S. Marden The business plan write up is all about educating a prospective investor. Even more importantly, the process goes a long way toward helping to better educate the owners and key employees of the organization. The great objective of education is to raise men and women to a higher power; a higher understanding of their business and life in general. As a person elevated himself through higher education, he begins to see that others are not there merely for his use, but that the highest good for everyone involved comes from mutual self-development and a shared sense of purpose. The only real success worthy of the title is that which comes from a person who sets out daily and forever to grow; obtain a deeper knowledge; improve the self morally and spiritually; and then does all he can to share with others what hes learned. So fortunate are the few who are trained from early childhood to see the beauty in all things; to assume the good versus the bad, and to believe things are possible rather than to instinctively stifle new ideas. The fine are of living is for each of us to seek our fullest development.
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2-1 MARKET ANALYSIS

Free business development plan software advice and a free business planning course for aspiring leaders. In the following information, you'll learn the importance of The Market Analysis section of a business plan.
"A clear vision, backed by definite plans, gives you a tremendous feeling of confidence and personal power." - Brian Tracy The Market Analysis illustrates your knowledge about the industry you are competing in. In this section you will want to present facts and corresponding conclusions based on your market research data. This key section of your business plan should include a complete industry description and industry forecast; key target market information; market testing results and an introduction to your key competitors. Industry Description & Forecast Describe your primary industry. Provide detail on the size of the industry and its historic rate of growth. List any important trends that youve noticed. Explain the life cycle of the industry and project the future rate of growth. Describe the customer base for your product or service. Target Market Its very important to know who your primary target market is. If you dont know your target market you havent done your research. Most important is narrowing your target market to the group(s) that you plan to court and manage for your particular product or service. In this section be sure to include any distinguishing characteristics of your target market such as size, market share, pricing targets, marketing opportunities to reach your target customers, and any trends or potential changes that might impact your primary target group. Market Test Provide specific results of any market tests have you have conducted in planning your business. Business development plan software goes into more detail on this section, but in general you can provide information on who you contacted and what information you gained as a result of the test. Tests might be related to pricing of your product or service or how youve analyzed the desires of your prospective customers. Who Is The Competition? Briefly identify who your primary and secondary competitors are. This provides a smooth transition to the competitive analysis.
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Words of Wisdom for Business Owners Respect The Competition "The general who wins the battle makes many calculations in his temple before the battle is fought. The general who loses makes but few calculations beforehand." - Sun Tzu People who have had the good fortune to remain in business over an extended period of time understand how important it is to cultivate a respectful dialogue with the competition. We must learn to foster a spirit of fair-mindedness, tolerance and even generosity toward our competitors. Doing so makes us better because we are able to learn more about the person we are competing against. There is no reason in the world for a business owner should speak harshly about a peer in the industry. Our character cannot afford to let friendly rivalry to degenerate into treacherous warfare, petty selfishness or foolish pride. Let the superiority of your character and product or service be what advances you in business. Unfortunately, this is not something covered in great detail in most business development plan software products. But rest assured, the world always looks down with contempt upon the one who attempts to build himself up by pulling others down. In contrast, the world always admires quality and fair-dealing. Securing the habit of thinking generously and kindly of others tends to transform your life into a more fulfilling experience.
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2-2 COMPETITIVE ANALYSIS

Free business plan software review and a business planning course for aspiring leaders. In the following information, you'll learn the importance of The Competitive Analysis section of a business plan.
"You need a plan to build a house. To build a life (or a business), it is even more important to have a plan or goal." - Zig Ziglar The Competitive Analysis should clearly identify your competition by its product line or service. In addition, the information should be broken out by market segment; assessing strengths and weaknesses and clearly identifying any potential barriers of entering the market. Provide market share data for each of your competitors. Project the time and costs that will be necessary in order for your company to get a foothold into the market. Dont limit your competitive analysis to only the top competitors in the market. Expand your assessment to include the minor players as well. You might be surprised to find out that one of those small fish are getting ready to introduce something brand new to the market that will allow them to have a competitive advantage in the very near future. List the strengths of your competitors. This allows you to assess what they are doing well so that you can work those strengths into your own service delivery systems. Commonly known strengths mentioned in the business plan software review that may be listed in the business plan include: Quality customer service Large market share Name recognition - well established traditions Solid financial results over a long period of time Established community network of resources Customer loyalty Employee loyalty due to strong and effective management
Weaknesses of the competition are of particular importance because you have the opportunity to capitalize on those weaknesses and gain an advantage over your competition. Our business plan software review will also point out potential weaknesses that you may be able to capitalize on.
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As you assess your competition you will no doubt realize that you have some important barriers to overcome. Do not allow those barriers to stop you from realizing your dream. Expect barriers to come up; welcome those barriers and go about the business of addresses each one as it raises its ugly head. Always remember that adversity is what makes the journey interesting. Potential barriers you might face include funding, personnel, technology, market resistance or your own personal training. Each one of these challenges can be overcome over time if you have the commitment and discipline to make things happen.
Words of Wisdom for Business Owners Reaching Out To Invite Success In "Im a busy guy but I set aside quiet time every morning and every evening to keep my equilibrium centered on my own path. I dont like being swayed by anything that might be negative or damaging." - Donald Trump Many times people possess a natural shyness that gets in the way of them proactively reaching out to meet others. This feeling can be overcome, and must be; if one is going to become a successful business person. People that are shy are also often times overly sensitive and can get their feeling hurt easily. Again, this is a weakness that must be overcome before it causes irreparable damage to the career. Those who possess solid self-esteem are typically not victims of shyness or over sensitiveness. To be a complete person who enjoys all the fruits of the world, one must be conscious, although not in an offensive way, of his own self-worth and dignity. In order to overcome shyness and sensitivity, you must place yourself squarely in the mix of people. While uncomfortable at first, over time youll become less anxious and more comfortable with your less sheltered surroundings. Yes, this will require willpower and an unbending determination to conquer a major barrier to your success. Archbishop Whately, who suffered from natural shyness and sensitivity, could not bare the thought of others thinking poorly of him. In order for him to overcome this crippling handicap, he made up his mind that he would not allow himself to be concerned with what others thought of him. With some practice, he quickly overcame his fears.
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PART III
THE OPERATIONS STRUCTURE
Business example free plan; a business planning course for aspiring leaders. In the following information, you'll learn the importance of The Operations Structure section of a business plan.
"A man who does not think and plan long ahead will find trouble right at his door." - Confucious The operations structure section of the business plan will vary widely depending upon the type of industry you are in. Management also has to determine just how much information they are willing to share given their concerns over proprietary secrets, trademarks and copyright issues. Its important to remember that some of those who are going to review your business plan may not choose to support your organization or become a part of your new venture. Therefore, you want to be careful about what kind of information you share with prospective investors. Obviously, once an investor has committed to the project then you will be more willing to share in greater detail. Businesses that are in manufacturing, distribution and food service all typically discuss issues of quality, staffing and productivity. Technology companies might focus more on their product development efforts and plans for future upgrades to their products. As you will see in our business example free plan tools, most all companies will use this section of the business plan to describe their facilities; placing special emphasis on their location and information systems.
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Words of Wisdom for Business Owners Adopt A System For Success "At all times it is better to have a method." - Mark Caine Systems and process are the mark of a successful businessman or woman. Too often business fail solely due to a lack of planning. The same type of system, order and forethought that goes into the running of a city should go into the management of a country store. Business owners have frequently pondered over how they could have failed in their venture, never able to come up with one single reason when they have inventory piled high to the ceiling that has never once been properly accounted for. Just for now, is a term that has corrupted many establishments. Managers put off what they know they must do just for now and expect to get back to it shortly, but never do. They put off balancing their bank statements, just for now; they fail to monitor their sales strategy just for now; procrastination is the bad habit that is formed under the devilish promise of just for now. Implementing systems is how successful people ensure that important tasks are completed regardless of whether he or she is present on a certain day or not. With a system set firmly in place, like you will read about in our business example free plan, a business owner need not worry about things being done on time. Adopting a solid process is another way to adopt good habits for your organization. If the process is good, so too will be the habits of your organization.
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3-1 ORGANIZATIONAL STRUCTURE

Free business plan resource; a business planning course for aspiring leaders. In the following information, you'll learn the importance of The Organizational Structure section of a business plan.
"Plans are only good intentions unless they immediately degenerate into hard work." - Peter Drucker In this key section you will need to detail how your various departments are organized. One highly utilized way of doing this is through the use of organizational flow charts, complete with brief descriptions. Use of an organizational chart is very helpful to all parties involved. It helps to define the various roles and responsibilities associated with each group or individual. While it might appear to be a useless exercise for a business with only one or two employees, the truth is that any time you can clearly define individual accountabilities the company will benefit as a result of this communication. Those individuals who are reading your business plan resource most definitely want to know who is in charge and why each person has been chosen to oversee a particular area. They will judge the quality of the project, in some measure, by the background and expertise of the various people in charge. This section will also share the legal structure of the business, as well as detail how ownership is structured. Is the business entity a C or S corporation; a partnership (general or limited); or a sole proprietorship? Key ownership information to include in your business plan resource might include: names of each owner percentage of each owners stake in the company to what extent is each owner involved in the daily operations
Make sure to include how each owner is compensated. Investors understand that each dollar paid in salary expense takes away from the bottom-line profits of the organization, so they will be looking to see that owners arent putting the business as risk through increased leveraging of the companys assets.
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Words of Wisdom for Business Owners Building A Network For Success "A good plan, violently executed now, is better than a perfect plan next week." - George S. Patton The late Andrew Carnegie suggested in a speech he once made that the following statement would make for an appropriate epitaph for his own tombstone; Here lies a man who knew how to get around him much cleverer men than himself. The great majority of men and women who succeed in business and in life, do so by surrounding him or herself with smart, eager and able associates. No man should make the mistake of thinking he needs no other person in order to succeed. We all need others to compliment or make up for our own weaknesses. No one know it all. You cannot lead a great enterprise; stand at the head of a board room table; or maximize your limited resources most effectively, unless you have established a network of mentors and business partners to help guide and support your efforts. Each person has his talents. Just because a man can write a great book on business does not ensure that he can successfully manage others. Writing management theory is not the same as practicing it in the real world. Humans are complex creatures who require leadership along with clear and effective communication. Not everyone is cut out to be the next Jack Welch, Michael Eisner or Donald Trump. In fact, each of these highly successful business tycoons would no doubt credit many on his management team and/or members of his circle of influence, as being mostly responsible for his success. As you work through the business plan resource process, make certain you have surrounded yourself with the most highly engaged, talented people available. Pay them whatever you must in order to gain their commitment. If they are as good as you think they are, then the upfront costs will be well worth the investment over time.
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3-2 MANAGEMENT QUALIFICATIONS

Free business lesson plan tool; a business planning course for aspiring leaders. In the following information, you'll learn the importance of the Management Qualifications section of a business plan. "Good fortune is what happens when opportunity meets with planning." - Thomas Edison Most business professionals agree that one of the key reasons for the success of any organization is the leadership and expertise of higher management. As a result, those who will be reviewing your business lesson plan are going to be very interested in the qualification of the owner and/or key managers. Their concern is right and it is warranted. No one in their right mind would decide to invest in a business when the owner knows nothing about the product he is attempting to sell. The risk of joining such a misguided venture is just too high. So its very important that you properly introduce your leadership team and support their appointment by listing clearly their unique qualifications. Providing a quick resume for each leader might include the following information: Full Name Position (Describe position and primary roles and responsibilities) Assigned Authority Education (highlight education relevant to this position) Unique experience and/or skills that are key to this position Prior employment record Past accomplishments, awards and areas of recognition Industry recognition and community involvement Compensation describer the basis for payout and levels of incentive compensation available to each individual
In your attempt to qualify your key people in the eyes of the person reviewing your business plan, its important that you are specific on the details. For example, rather than making a generic statement about how you believe this person is qualified, make a statement that is powerful and will stand alone to support your team member.
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A statement of support may go something like, Mr. X managed a sales team of 20 people, increasing sales by over 15% in the first year of his employment with XYZ Company. In addition, Mr. X was directly responsible for hiring over half of the existing sales force. Finally, as you assess each team member in the business lesson plan, point out how each person complements your own skills, or even perhaps adds strength in an area that you are weaker.
Words of Wisdom for Business Owners Onward and Upward! "In life, as in chess, forethought wins!" - Charles Buxton What shall I accomplish today? This is a question every person should ask and answer every single day. No one can fully enjoy life, or feel that he is truly living, if he has no regular sense of accomplishment. If you have doubt about your passion for the occupation you are in, abandon it as soon as possible. Choose your work. Do not allow work to choose you. Choose an occupation that will force you to develop and grow. It is a mistake to assume that a special calling or talent for a particular thing will always manifest itself in youth. Many men and women do not identify their true passion until much later in life. You may be wondering how to determine what your calling is in life. Many people struggle with this question throughout their lifetime. In selecting a life calling consider basing your decision on the following principle: A feeling of certainty that you can do more good there than in any other work in the world In other words, determine where you can best SERVE others. Fulfillment is quickly increased by serving others. Whatever you do in life, be greater than your calling. This is a key learning in our business lesson plan. Too often people look at their occupation as a means for paying the bills and making a living. This is a narrow view that bleeds a person of his dignity and self respect. Apply for the greater school in life. Work to develop yourself and broaden your horizons; deepen your understanding of whats important; heighten your awareness of whats out there waiting for you; and learn to appreciate the value of time and begin to maximize your time by living your passion.
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PART IV
THE MARKETING STRATEGY
Free business action plan, a business planning course for aspiring leaders. In the following information, you'll learn the importance of The Marketing Strategy section of a business plan.
"All you need is the plan, the road map, and the courage to press on to your destination." - Earl Nightingale Successful marketing campaigns create new business customers. Since the customer is the lifeblood of your business it is highly important that you understand who your customer base is and what their needs are. Once you have properly identified your customers and what they desire, the next step is to figure out how to best position your service or product in a way that will attract those customers. This is no magic potion, silver bullet or special template that will tell you the best approach for your business. Instead, you will determine your approach based on your quality of your research and the level of creativity provided by you and your team members. The marketing strategy needs to be open to regular tweaking and adjustments. A strategy that works well in the summer may not provide the same results in the winter. A strategy that appeals to one customer segment may put off another. Marketing is complex because its a people and behavioral business. A good marketing strategy in your business action plan will include: Detail on how you intend to penetrate the market Plan for growing the business through sales management practices, new product development, acquisitions, expansion, etc Explain how your product or service will be distributed efficiently A clearly defined communication strategy that explains how you will interact with potential clients, build and expand current customer relationships and what kinds of marketing materials will be utilized (TV, Radio, Newspaper, Brochures, etc)
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Words of Wisdom for Business Owners Business Action Plan on Advertising "I would just as soon think of doing business without clerks as without advertising." - John Wanamaker Too many young businessmen and women fail because they do not know how to advertise effectively. Too often, money is thrown away because ads are produced that lack any sort of pull to the customer. No personal connection is made. The customer does not respond to text that lacks any sort of emotion. A good advertisement talks; it does not scream buy me but it does pull the customer through a subtle, yet effective, explanation of how your service your product will benefit the reader. The pitch may be two paragraphs or two words, whatever is necessary to make the point effectively. The time long is gone when a business can simply put their name out and expect an immediate response. Today marketing is necessary in order to survive and because of its importance, marketing has become a fine art that every business person should seek to master. This is a key item for your business action plan. The most effective advertising concentrates on some specialty. Identify how your product or service is special. Make certain you can deliver on your promise as the most profitable advertising is word of mouth. On a daily basis, you must deliver on your promise. Guard your reputation firmly against any possible slander. Hold your employees accountable to the same promise to the customer. Hire only those who you are willing to trust your reputation to. Your customers wants to know exactly what they will get for their hard-earned dollars. Nothing else in the way of attractive marketing or pithy statements will every take the place of the truthful facts you present in your advertising. Stay true to your word and your customer will remain true to you.
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4-1 SALES MANAGEMENT

Free business plan start up; a business planning course for aspiring leaders. In the following information, you'll learn the importance of the Sales Management section of a business plan.
"To be prepared is half the victory." - Miguel De Cervantes Sales management is more than simply following a plan to call x number of prospects per day in order to make y number of sales. Highly effective leaders also understand that in order for an organization to sustain increasing quality sales levels, there must also be a team oriented sales culture in place. Each member of your sales force must understand before they are hired that their number one responsibility is to consistent drive quality sales production. You job as the leader of the organization is to make certain that each sales force member is fully supported, encouraged and rewarded for their successful sales efforts. Your ability to articulate this goal in your business plan is essential for any business plan start up. Explain to your reader how you intend to drive sales; is it through an internally managed sales team or by contracting with independent, commission-based representatives? Detail how you recruit sales team candidates. How will you train your sales team? How do you intend to compensate your sales team? All of these key questions need to be answered as part of your business plan. Those who are reviewing your business plan are going to be very interested in how you intend to lead sales activities, and what those activities will consist of. Explain how you have identified your prospects; how you intend to market to them; how you will effectively ask for the business and what you expect your success ration will be. Force yourself to be very specific in this section of the business plan start up guide. The work you do here can provide benefits to your entire organization for years to come if you plan is solid and you are able to effectively execute to the plan.
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Words of Wisdom for Business Owners Thoughts On Salesmanship "Meticulous planning will enable everything a man does to appear spontaneous." - Mark Caine One of the most valuable money-making qualities that any man or woman can possess is that of salesmanship. To be a good salesman or saleswoman means you will be in demand throughout your entire career. Good salespeople are hard to find and employers will do just about anything to hold on to them. Good sales-oriented employees are seldom looking for work so if job security is something you seek be a great salesperson. Sales training is a benefit of many organizations. Too often, however, employees see it as another demand of management rather than the opportunity to acquire highly valuable skills that can secure their future. Good salesmen possess qualities of courtesy, tact, resourcefulness, endurance, honesty, a firm and unshakeable confidence in ones self, a thorough understanding of their product or service, and an ability to gain the trust of others. Sales production is directly tied to relationship-building. Many times the opportunities come to a person in sales because of who they know, who theyve helped in the past and the quality of those well established relationships. Your reputation should not be that of a salesman or saleswoman. Rather, your success will be based on whether people perceive you to be a caring and thoughtful person who has the expertise and the desire to help others meet a particular need.
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4-2 BUSINESS RESOURCES

Free business floor plan for success, a business planning course for aspiring leaders. In the following information, you'll learn the importance of the Business Resources section of a business plan. "If you have accomplished all that you have planned for yourself, you have not planned enough." - Edward Everett Hale In this section of the business plan you want to make clear to the reader just what sort of business resources you have available to you to support this new endeavor. Business resources are certainly not limited to the assets listed on the companys balance sheet. Resources come from many areas inside and outside the organization. To the level that you as management are able to articulate and identify the business resources, goes a long way to show just how credible you will be as an effective manager. Business resources that you should consider to being applicable to your business floor plan reviews include: List the major operating equipment that your company owns or leases. Include a brief description, age, condition and value. List major suppliers. Explain how close in proximity the supplier is and what sort of payment terms you have negotiated. Identify other outside resources used or needed in order to fulfill customer expectations. Describe your quality control procedures. If you do not have quality control procedures, outline your plan to put them in place. This helps lesson risk to the organization so your reader is interested in seeing this in you business floor plan review. Explain the availability of skilled labor needed to meet the needs of the organization.
Finally, we also suggest that you include any sort of outside professional counsel that you receive and have regular access to as a business resource. If you accountant, lawyer or other just happens to have a background or expertise in your particular type of business, this can be a tremendous resource to you and the organization.
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Words of Wisdom for Business Owners Be With People In Their Calling "Desire! That's the one secret of every man's career. Not education. Not being born with hidden talents. Desire." - Bobby Unser Set out to do what you are meant for. What does your heart tell you? If you are meant to study law then you feel the pull to study law. If you passion is to cure the sick then you must study medicine. Doing something simply because you fall into it or because that is what your father did, and his father before him, should not be the reason for you to do the same thing. Nor should you allow yourself to be surrounded by others who are not following their true passion. We each become a product of our environment. The people we regularly associate with provide a natural pull to us. They either pull us UP, or they pull us down. Unfortunately, too many people do not even realize they have a choice in their occupation. They grow up in sheltered area, with very little in the way of outside influences, and as a result they do not begin to think of the many other possibilities available to them. At some point in life, the light bulb goes off and they realize that there is more to consider, but then they feel shackled by the lack of early education or a lifelong routine that has given birth to a fear of failure is they were to try something outside of their comfort zone. If this describes you, then you are encouraged to take fear by neck and break it! Take the first step forward to walk outside your area of comfort begin to take on a new challenge. Get determined to learn and grow and live a more interesting and less predictable life.
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PART V
THE SERVICE OR PRODUCT OFFER
Free small business plan sample; a business planning course for aspiring leaders. In the following information, you'll learn the importance of The Service or Product Offer section of a business plan. "A business absolutely devoted to service will have only one worry about profits. They will be embarrassingly large." - Henry Ford In this section we need to get very clear about just what it is that we are selling. Describe in detail what product or service you are offering to your target market and why they will be drawn to your product or service. For example, rather than simply listing your product line of 64 different products or services, explain how mid-level executives will prefer your product or service over that which is offered by your competition. Focus your comments on areas where you feel you can create a distinct advantage in the marketplace. Provide your reader with concrete evidence that customer are willing to pay for your unique solution to their problems. Share your market test data that supports your claims. In summary, this section of your small business plan sample should include: Detailed description of the product or service Information detailing the life cycle of your product or service Any copyright, patent, or trade secret information that may be relevant Research and development activities that support your claims
Be sure to provide full color marketing material in the way of brochures or other creative material to present your product or service in the best light possible.
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Words of Wisdom for Business Owners The Art of Winning Peoples Confidence "A man who trusts nobody is apt to be the kind of man nobody trusts." - Harold Macmillan The art of gaining peoples confidence quickly and retaining it provides a major advantage to the business person seeking to move forward in a career. Not everyone possesses this highly valuable trait. In fact, the majority of people unknowingly erect barriers that get in the way of acquiring the skill of gaining others trust. By having a disagreeable manner, lack of tact or diplomacy, or just an unpleasant personality; many frequently repel and antagonize those whom they are anxious to please. Many people have to work extra hard to overcome the disadvantage of presenting a poor first impression. In contract, others without much effort at all tend to charm everyone they meet. Success is often granted more on ones engaging manner and attractive personality that to a great ability or talent. The first step to cultivate a more pleasing disposition is to see yourself the way others see you. You are encouraged to remember this prior to presenting your small business plan sample. Be aware of your posture; the manner that you greet people and your instinct to smile when you are approached. A genuine smiling face will do more to gain the trust of others than all other virtues. Be generous in your sympathy and try to be at least as much interested in the joys and sorrows of others as you would wish them to be in yours. Treat people as trusted friends to the extent you can do so without coming across as insincere. Your trust in others will cause them to be more open to trusting you more quickly.
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PART VI
THE KEY RISKS & OBSTACLES
Free sample start up business plan; a business planning course for aspiring leaders. In the following information, you'll learn the importance of The Key Risks & Obstacles section of a business plan.
"There are risks and costs to a program of action. But they are far less than the long-range risks and costs of comfortable inaction." - John F. Kennedy For obvious reasons many business owners are not comfortable including risk issues in their business plan. Not only do they wish to avoid the topic in the boardroom, but many just dont like to address key obstacles out of fear. In addition, many entrepreneurs are programmed with optimism and they pride themselves on being able to overcome obstacles as they are presented. Some simply wish to avoid any confrontation on the subject of risk. In our sample start up business plan guide, we do address key risks and obstacles. We suggest you do not sugar-coat any identifiable risk that you may face in carrying out your business plan. In fact, by addressed the risk squarely in your business plan you provide an opportunity for others to advise you on dealing with the issue most effectively. Use the following steps for presenting risk and obstacles issues in your business plan: State the risk or obstacle and the potential negative impact to your business Explain why you believe this risk factor is something that can be overcome or avoidable Provide your action plan for dealing with the risk issue Provide a timetable. When during the business plan do you believe the issue will present itself and how long will you need before you will be past it? List the potential cost to the business in dealing with the risk or obstacle
Make sure you have researched any possible means for insuring your business from the potential loss due each risk or obstacle. For example, if one of your key leaders has skills that would be greatly missed should he all of a sudden be killed or incapacitated, the organization may want to protect itself with a term life policy.
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Words of Wisdom for Business Owners Key Rewards Come Out Of Obstacles "If the creator had a purpose in equipping us with a neck, he surely meant us to stick it out." - Arthur Koestler Everyone knows someone who regularly complains about how he or she would have been a great talent if only they grew up in a place more nurturing. They use the unkind conditions of their youth as a reason for being who they are; the person they arent totally satisfied with. A person could suggest to those persons who are discontent about their upbringing, that some of the greatest characters in the worlds history consist of men and women who struggled through the harshest of realities. These great achievers would no more trade their early struggles than they would cut off one of their own limbs. They now realize it is in the struggle to overcome adversity that makes men and women great. The sample start up business plan should include any struggles you faced and successfully overcome. The fight against inhospitable surroundings is what develops extraordinary willpower and determination. The true strugglers, those born to a heritage of poverty and hard-knocks, and not those who were reared in the lap of luxury, with few exceptions have become the leaders of civilization. These men and women are known as the giants of our race: Abraham Lincoln, Martin Luther King, Jr. are Helen Keller are prime examples of this trend. A great number of people are never awakened to their true power until ruin confronts them. They do not know how to call out their reserve energies until they are faced with financial or physical disaster. Only then are they capable of responding like a thunderbolt to overcome the adversity facing them. What seem at the time to be cruel misfortunes often prove to awaken, inspire and compel people to take action. At last, having fought the battle and weathered the storm, the boy is a man and the girl becomes a woman; both are now admired for their fortitude and character and are indeed a force to be reckoned with.
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PART VII
THE USE OF TIME TARGETS
Free business outline plan; a business planning course for aspiring leaders. In the following information, you'll learn the importance of The Use of Time Targets section of a business plan. "Know the true value of time; snatch, seize, and enjoy every moment of it. No idleness; no laziness; no procrastination: never put off till tomorrow what you can do today." - Lord Chesterfield Leaders building a business plan are mostly focused on what how the business will perform in the first year during the start up phase. The business outline plan, however, requires you to think, and plan, further into the future. The first 12 months of a new business is highly intense and requires 100% of the owners attention. Assuming the business survives the first year, it is in year two through year five that will be the real test. All business owners earn their stripes as they lead their organization through a couple economic cycles. An economic cycle will typically come full circle within three to five years. The economy will go up and down. The volatility of the market will in some way impact your business. Business owners need to plan ahead and prepare their business to survive the hard times. The following provides a complete summary of a business outline plan life cycle: Year 1 The start up year. An idea turns into a business plan. Year 2-5 The first growth cycle. Product line and market-share is well established. Year 5-10 The next level. Business is solid and its time to expand number of locations or consider additional revenue streams. Year 10-30 Business is reputable and stable. Subject to becoming obsolete from energetic start ups. Owners plan to cash in for retirement. Retirement Owners either sell or identify a solid succession plan to ensure leadership for the organization.
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Words of Wisdom for Business Owners Effective Managers of Time "You will never find time for anything. If you want time you must make it. - Charles Buxton Successful leaders are typically great protectors of their time. They seek out ways to get rid of time wasting activities that only use up that which cannot be replaced time. Only those who have learned the value of time can appreciate its importance, and effectively guard against those who would encroach up their time. There are many who will thoughtlessly take up time if you allow it. One of the most valuable assets of a businessman is the power to compel those with whom he does business to be brief and to the point. Effective time managers have a marvelous instinct for measuring and sizing up those they come in contact with. They can quickly find out what the individual wants and is fast to assist the individual in getting to the key point. Good time managers never allow people to steal away their time. While they may make themselves readily available to people so that they never miss out on a good opportunity; they will not suffer those who would simply drop in and waste the precision minutes of a busy man. Leaders who maximize their waking hours are committed to making their words count; they are known for their directness and being clear and concise in their communications. These prompt, sharp and sometimes pointed executives can often times offend people who are more used to dragging out the day with niceties. However, the gift of the gab is traded for the prize of profits as the executives time achieves greater results; they simply get more done.
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PART VIII
THE FUNDING REQUEST
Free business education lesson plan tool; a business planning course for aspiring leaders. In the following information, you'll learn the importance of The Funding Request section of a business plan. "Sooner or later, those who win are those who think they can." - Paul Tournier This section of your business plan is where you will request the amount of funding necessary to support your business, whether the purpose is to start up a new business or expand an existing one. If possible, you might want to provide more than one option for prospective financiers to consider. Each scenario for funding, however, should stand on its own and be an appropriate amount to fully support the project. As you outline your current and future funding requirements in this business education lesson plan, be sure you include the amount you need currently as well as the amount you will require at a future date. Provide a clear purpose for the funding. Explain in detail how the funds will be used and how those funded activities will help promote and drive the growth of the business. Some ways the funds may be used could include capital expenditures; working capital; debt reduction; expansion and new acquisitions. A quick summary of whats covered in your funding request includes: Amount of the request Amount requirement now and at a future date(s) (over the next 5 years?) How the funds will be used Immediate and long term strategy that could have any sort of impact on your funding request Terms of funding you are requesting
Lastly, it is imperative that you make clear to the investor how you intend on repaying the funding provided. You need to exhibit a clear commitment to make good on the trust you are asking them to have in you and your project.
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Words of Wisdom for Business Owners Borrowing Capital "A wise man should have money in his head, but not in his heart." - Jonathan Swift One of the most critical key teachings during a business education lesson plan is the risk associated with borrowing money. If you start a business on a shoestring and then show a great talent for it and wish to expand, then borrowed capital at reasonable terms can be beneficial. But you need to tread very lightly when borrowing money. Too often people overextend themselves to support a startup venture which they have no solid experience in and they quickly lose their business and carry a large burden of unpaid debt in the process. A persons success in the line of business he wishes to enter depends greatly upon his insights into character, upon ones ability to choose just the right people to assist him. Surround yourself with a support system of well qualified, energetic and hard working people who share your vision and are committed to making the dream a reality. Be content to start your business in a small way. After you have demonstrated a capability to drive results and grow the business, you will have little difficulty in gaining credit to support future expansion. Because of your expertise, your ability to negotiate better terms for financing will also greatly increase. Just because you can borrow money, doesnt mean you should! The best advice is to avoid debt as you would avoid standing in oncoming traffic. Make up your mind never to have your name on another mans book of accounts. Terms such as, the borrow is slave to the lender and he that goes a-borrown, goes a-sorrown, hold a lot of wisdom that we should bear in mind before ever signing a note of any kind. Proceed with caution and manage your risk closely.
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PART IX
THE FINANCIALS
Free business plan template; a business planning course for aspiring leaders. In the following information, you'll learn the importance of The Financial section of a business plan.
"Your financial life is like a garden. If you tend a garden carefully, nourishing the flowers, pruning, and weeding, it's going to be a lot more beautiful than if you just water it half-heartedly now and then." - Suze Orman The financials should only be created after youve fully researched the market and determined very clear written objectives. During and the next three subsequent pages we will identify and provide instructions for building a current and prospective balance sheet, income statement and cash flow statement. These combined financial statements will be the key measuring stick for your business. If you own an established business, our free business plan template will require you to provide historical information. Most prospective creditors will want to review at least the past three years of financial data. They will be particularly interested in your assets, which will more than likely be held as collateral for the financial request. Regardless of whether your business already exists or is a startup venture, you will be required to provide financial projections that are firmly supported with market data. For the first year, you will be asked for monthly projection statements. After the first year, quarterly statement will be acceptable for the following year, and then annual statements will suffice for years two through five. As the prospective creditors review your business plan they will be on the lookout for any inconsistencies. Its always best if you catch your own mistakes before they do; you want to maintain your credibility as an astute businessperson. Many of the questions that we encourage you to answer in the free business plan template include: Describe the companys sales and profits trends. Outline your strategy and timing for obtaining additional capital for expansion and/or to meet current needs. Explain any assumptions used in your projections
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If you have an existing line of credit, provide name of bank, line limit, amount owed and available, and how it is secured. Identify any debt and its purpose that the business and/or owners have guaranteed. Include copies of original notes or contracts signed. Describe the method of financial accounting (cash or accrual); how financial statement are prepared (in-house or outside accountant); is system manual or computerized? Explain any abnormal, nonrecurring, or unusual items on the most current financial statements. Disclose any outstanding claims, charges or pending legal cases that the company or owners are involved in, or are at risk of being involved in.
Finally, key financial statement rations should be provided as part of the business plan. High quality color graphs and charts also add to the professionalism of your business presentation.
Words of Wisdom for Business Owners Frugality Is A Habit Worth Having "Those who would have dollars must regulate their desires." - Orison Marden Frugality is a lesson which every generation teaches anew. Those who become masters in saving create great fortunes in later years. If you live like no one else today, then you can live like no one else tomorrow. Managing money effectively equates to ones desire to manage pain. Imagine the pain associated with scrimping and saving your pennies; while it pain does sting somewhat it does not begin to compare to the enormity of pain that goes along with the hammering from hungry creditors. A contented mind is a continual feast; a feast that can never be enjoyed by the unhappy victim of debt. Debt robs men of their strength, ambition and dignity; destroys their peace and tranquility so absolutely essential to the successful pursuit of this occupation or profession. The trick or carefully avoided secret that most people ignore is to make your income, no matter how small it may be, the boundary line of your expenses. There are no men or women who have achieved success to any great extent who were careless and extravagant about his or her expenditures. It shows a lack of mental and financial discipline; a lack of system or process, which makes way for quick failure.
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9-1 BALANCE SHEET REVIEW

Free balance sheet example template and a business planning course for aspiring leaders. In the following information, you'll learn the importance of the Balance Sheet section of a business plan. "Before anything else, preparation is the key to success." - Alexander Graham Bell The balance sheet provides a manager or potential investor with a snapshot of an organization for a single point in time. For instance, if the date listed on the financial statement say January 30, 2006 Balance Sheet, you can be certain that the numbers provided are only accurate on that specific date in time. Many times business analysts overlook the importance of the balance sheet. Instead, they tend to focus more on the income statement because they are most interested in actual earnings rather than a simple listing of assets and liabilities. While earnings are of the utmost important, one needs to review the all of the available financial data in order to complete a proper analysis of the fitness of the organization. An easy way to describe the balance sheet is to point out the by subtracting the liabilities from all the assets of a company, the remaining difference is the equity or net worth. The net worth shows, in part, the current strength of the organization. A high net worth means a stronger foundation than a low net worth. A high net worth equates to a lower level of risk to the organization. The reason that this statement is called a balance sheet is that both sides of the statement MUST balance. In other words, Assets = Liabilities + Equity The left hand side of our balance sheet example lists the assets in the following order: Current Assets = Cash, Accounts Receivable and other assets that can quickly be converted into ready cash. Non-Current Assets = Property, Equipment and other long-term assets that are certainly worth something but might take longer to convert to cash. Other Assets = Goodwill and basically anything that doesnt really fit into one of the other two categories above.
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The right hand side of our balance sheet example lists the liabilities and equity in the following order: Current Liabilities = liabilities of the organization that are due within the next 12 months. Non-Current Liabilities = debt which will not become due in the next 12 months. Equity = this equates to the difference between total assets and total liabilities and may also reveal amounts of equity held in common or preferred stock, treasury stock and retained earnings.
Receive your free balance sheet example template using the following link:
Download Free Balance Sheet Template Tool

http://www.sba.gov/library/balsheet.xls Words of Wisdom for Business Owners Management As A Key Asset "In the field of observation, chance favors the prepared mind." - Louis Pasteur Many years ago, the President of Bradstreets, the late Charles F. Clark was quoted as saying, The structure of our society is based on the confidence of the consumer. We could have no civilization were it not for the fact that millions of men and women in the past were deemed worth of credit by their fellow countrymen. I should like to say, continues Mr. Clark, as strongly as possible, to every young business person that one of the chief aims of your daily work should be to strengthen your reputation for quality and honesty. There is a real lesson to be learned from Mr. Clarks historic words of advice. Good intentions alone do not make a good reputation. Good intentions must be paired with true ability in order to carry out your claims. You must continually prove your ability; turn your promises into successful results and routinely meet or exceed your business obligations.
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9-2 INCOME STATEMENT REVIEW

Free income statement sample template and a business planning course for aspiring leaders. In the following information, you'll learn the importance of the Income Statement section of a business plan.
"There are few sorrows, however poignant, in which a good income is of no avail." - Logan Pearsall Smith The income statement sample provides a manager or potential investor with the meat of what they are interested in, namely revenue, net income and earnings per share. The income statement holds a vast amount of key information. It shows a firms revenues and expenses along with taxes associated with those expenses for a specific period of time. Whereas the balance sheet is organized in terms of left and right, the income statement reads top-down. When prepared the income statement sample for the business planning process, you should realize that potential investors are extremely interested in profits. After all, these peoples business is to make money so they will be very specific in their questions to you about how you intend to earn your income and also exactly how you intend to report it. Our income statement sample lists the revenue and expenses from top to bottom in order to come to the bottom-line net profit number. Specifically, you read the incomes statement in the following order: Revenue = sales proceeds from products or services sold to customers. (minus) Cost of Goods Sold = expenses that are due to the cost of materials used to create the product sold. (equals) Gross Margin = this is another name for gross profit, simply a reflection of revenue minus cost of goods sold. (minus) Operating Expenses = expenses not associated with cost of goods sold. Examples include salaries, advertising, maintenance expense and other. (equals) Net Income before Interest and Tax Expense = this reflects net income prior to deducting both interest expense and tax expense.
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(minus) Interest Expense = expenses associated with the interest paid on payment made outstanding company debt. (minus) Income Tax Expense = expenses associated with the taxes paid to federal and state agencies. (equals) Net Income = this reflects the final profit made after all expenses are taken into account.
It should be noted that depending on the type of business, the format of the income statement sample may vary somewhat. Some businesses choose to break down operating expenses into many sub-categories and some may list out the depreciation expense as its own separate line item. Regardless, of how many categories are used, all expenses must be taken into account prior to listing the net profit.
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Words of Wisdom for Business Owners Common Courtesy as Capital "If a man be gracious and courteous to strangers, it shows he is a citizen of the world, and that his heart is no island, cut off from other lands, but a continent that joins to them. - Francis Bacon Countless number of professional men without any special ability in business has succeeded financially by means of a courteous manner. Many commercial businesses owe their success in large part to their ability in selecting men and women sales representatives with pleasing manners and personalities. As you build your business plan you should be certain to mention the strengths of your key employees. In addition, you want to provide your strategy for choosing new hires into the organization going forward. In building up your business you should choose your employees with great analysis and careful thought. Courtesy is one of the key essentials in any service or sales oriented business. Rest assured, all things being equal, the employee who is selected for advancement is the one with good manners, a fine graceful disposition and a confident presence. These qualities are the best kind of capital, even better than quick one-time profits on the income statement. Courtesy is to business and society what oil is to machinery. It makes things run smoothly, for it eliminates the friction and the nerve-racking noise.
Receive your free income statement sample template using the following link:
Download Free Income Statement Template Tool

http://www.sba.gov/library/incstmt.xls
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9-3 CASH FLOW STATEMENT REVIEW

Free sample cash flow statement template and a business planning course for aspiring leaders. In the following information, you'll learn the importance of the Cash Flow Statement section of a business plan. "Our greatest lack is not money for any undertaking, but rather ideas, If the ideas are good, cash will somehow flow to where it is needed." - Robert Schuller The sample cash flow statement template, unlike the income statements, deals only with cash related items. Non-cash items such as deprecation are not included as part of this particular analysis. The cash flow statement, along with the balance sheet and income statement, rounds out the majority of what are commonly referred to as a businesses financials. Cash flow analysis is relatively new. The statement has only been required as part of a complete business plan since approximately 1988. Nowadays every organization wishing to file reports with the SEC (Securities and Exchange Commission) is obligated to provide a sample cash flow statement representing quarterly and annual activity. Many of the items on the cash flow statement are also included as part of the balance sheet and income statement. The key difference is that this statement is uniquely configured to highlight cash generated; cash inflows and cash outflows. Cash flow tells an important story to business managers and potential investors. It is very difficult to manipulate a companys cash activity. Assuming no outright fraudulent activity is involved, the cash flow statement tells precisely where the cash has come from and where it has gone out to. You either possess cash or you do not. Cash is king, so cash flow is highly valuable information. Our sample cash flow statement lists clearly the cash generated from operations; cash used for investments; cash gained from proceeds of sale of assets; cash paid or received from either the issuance of notes or the payment of notes. Investors will zero in on the organizations current cash position and the trends associated with the balance of cash on hand.
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Words of Wisdom for Business Owners Health Over Cash "Cultivate only the habits that you are willing should master you. - Elbert Hubbard Anyone aiming for high achievement must maintain their health and a strong physical condition; always ready for lifes great challenges that will continually place the go-getter in a position to utilize the reserve energies. An inexperienced leader or businessman might proclaim, What is the use of depriving ones self, during all these months, of even the slightest pleasure? What is the good of retiring early for maximum sleep or exercising routinely? The fact of the matter is that once these fitness habits are instilled, they turn from becoming a burden you must endure to a gift that you give yourself regularly. You give yourself sharpness of the mind and you add decades to your lifespan. Think of all the glorious memories you will get to witness with the added years youve gifted to yourself. More importantly, realize the additional years you will be able to function wholly without the help of contraptions or healthcare workers. Wouldnt you rather take regular walks now on your own, than have to be wheeled somewhere for years because of the atrophy of the limbs caused by laziness and under utilization? There is nothing else in the world so valuable as being able to participate fully in life; to be able to use all your power in the most effective way; it is the most lavish of human luxuries.
Receive your free sample cash flow statement template using the following link:
Download Free Cash Flow Statement Tool

http://www.sba.gov/library/cfbudget.xls
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PART X
THE BUSINESS PLAN APPENDIX
"All growth depends upon activity. There is no development physically or intellectually without effort, and effort means work." - Calvin Coolidge The appendix section of the business need only be provided to prospective business partners on an as-needed basis. The appendix section should never be included without the owner first determining that it is imperative that this section be provided to the reader. The information provided in the appendix can be considered highly confidential because it supplies the reader with all the supporting documentation and information about the organization. This information should be considered as proprietary and confidential. Your business plan is a tool for you to communicate your investment and resource needs. Due to the fact you are looking for investors, the business plan will be seen by a great number of people. Therefore, the appendix information should be held closely for only those most serious and committed business partners and investors. Certainly, creditors at some point may request supporting documentation and you need to supply this information upon request in order to maintain the relationship, but the appendix information does not need to be shared freely for just anyone to view. Some of the highly sensitive supporting documentation that may be included in the appendix as part of our business free plan template includes: Credit information, history for both personal and business Personal resumes with background information on high level managers and business owners Product research data (cutting edge research and development secrets) Personal and professional letters of reference Market testing data Licenses, permits, patents, trademark information, etc. Legal documentation including supplier contracts, land contracts, etc.
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Copies of bill of sale, leases, etc. List of business network contacts; consultants, attorney and accountant, etc.
Business owners and executives must closely control any and all copies of the business plan and supporting documentation. Maintain a concise distribution list of all who have been provided a copy of your plan. This will also allow you great ease in distributing any updates you make to your plan. Always, include a private placement disclaimer with your business plan if you are seeking to use the business plan for the main purpose of raising money.
Words of Wisdom for Business Owners Keeping Up With The Times "Opportunity is missed by most people because it is dressed in overalls and looks like work." - Thomas Edison Many who utilize our business free plan template tool do so in an effort to grow and expand their business. These business owners many times seek funding to upgrade their equipment and gain greater efficiencies through improved technology. These same people understand that their competitors know the reason why keeping up with times is so important. They know that this is a progressive age, when everybody wants to patronize the most modern establishments. A reputation of being out-of-date; behind the times, no matter what your business or profession will soon make itself felt through loss of income. Your patrons will eventually leave you to enjoy the progress of the marketplace elsewhere. The successful merchant sees that those who attain the highest success are the most progressive, the most aggressive and up-to-date in every aspect of their business. Ruts should actively be avoided. Every year will bring new changes in the requirements of your business to remain competitive and on the cutting-edge. People who anticipate change and are ready to meet these challenges head-on will enjoy the blessings of a growing business.
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BUSINESS PLAN CONCLUSION

Business plan review software is a must for todays aspiring business leaders. In conclusion to our ten-part business planning course, we leave you with some brief comments as you begin the business planning process in earnest. "A diamond is a chunk of coal that is made good under pressure." - Henry Kissinger Someone who plans out thoroughly what it will take in order to achieve greater success holds a distinct advantage over the one who simply plunges forward. He who possess the clearer vision of what is necessary for a successful journey, holds the best chance to realize his vision as reality. A business plan is a very important tool. There are three main purposes of a business plan. First, to ensure effective communication; second, to support and direct management; and third, to attract and retain the support of investors and business partners. The development of a comprehensive business plan is the main goal in our business plan review software. The business plan shows whether or not you have the potential to successfully lead your team to greater profits. Almost every phase of the business is capturing and analyzed in the plan. The feedback you gain from others fully critiquing your plan is invaluable. Use this feedback to rework and improve your business plan, thereby increasing your chances for success. As a management tool, the business plan will help to keep you and your team members on track toward meeting your ultimate goals. As you track your progress and compare your results to the projections you stated in your business plan you will easily be able to see if you are on track or not. Many business owners share many of details of their business plans with their employees. We recommend this in our business plan review software as well. The more team members that clearly understand the goals and rewards detailed in the business plan that better. Create energy within your team to meeting the time targets detailed in your business plan. Celebrate with your team as each major objective is reached. Use this momentum to propel your team and your business to greater heights and increased profits.
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Words of Wisdom for Business Owners Success On Your Own Terms "The pressure of adversity does not affect the mind of the brave man... It is more powerful than external circumstances." - Seneca The most important capital for doing business is capital that is within your own power. It consists in making the most of the talent and ability you currently posses; awakening your inner reserves and putting your potential to work. Success in business depends greatly upon the quality of the conversations you have in your own mind. If you believe in yourself and are constantly providing words of encouragement and can do, you most likely will go on to succeed. If the words you hear from the tiny voice within are filled with doubt and fear, your chances for success in business are greatly diminished. A builder does not lay brick for a home before a well thought-out plan is in place. Concrete is never poured before the plan for construction is first derived. In short, nothing worth doing is done without proper planning and preparation. In order to ensure your unwavering commitment to your task, you must make a continual effort to continually grow and learn; building your reserves so that they will be there when called upon. Make up your mind that whatever comes to you, whether you make a large fortune or none at all, there is one thing you will do YOU WILL CONTINUE TO GROW. No day shall pass which will not find you a little more knowledgeable, a little wiser, a little better than you were the day before.
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Words of Wisdom for Business Owners An Introduction:

1-1 MISSION STATEMENT TOOLS

Check out these two free mission statement tools:

Company Mission Statement Tool

Personal Mission Statement Tool

1-2 MISSION STATEMENT EXAMPLES

Words of Wisdom for Business Owners A Recipe For Wise Living

2-1 MARKET ANALYSIS

2-2 COMPETITIVE ANALYSIS

3-1 ORGANIZATIONAL STRUCTURE

3-2 MANAGEMENT QUALIFICATIONS

4-1 SALES MANAGEMENT

4-2 BUSINESS RESOURCES

9-1 BALANCE SHEET REVIEW

Download Free Balance Sheet Template Tool

9-2 INCOME STATEMENT REVIEW

Download Free Income Statement Template Tool

9-3 CASH FLOW STATEMENT REVIEW

Download Free Cash Flow Statement Tool

BUSINESS PLAN CONCLUSION

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