Business Plans

Business Plans

Business plans are a formal or informal analysis providing an organized collection of thought processes regarding the formation and development of a start-up business or a change in business products and services offered by an existing business enterprise.

The purpose of business plans are to establish a workable plan for the organization, capitalization, management, staffing, facilities needs, and operations of a business engaged in any business type.  It is understood that the formation of a new business is a dynamic process.  As a result, the results generated by the proposed business will likely differ from the published plan.

VAVA Inc. primarily provides business valuation services. While business valuations are quite different from business plans, the two “planning” documents are very similar in terms of both purpose and presentation. In fact, many of VAVA Inc.’s business valuation clients use valuation reports as business plans (both formally and informally).

Each plan is unique and must be tailored to match the specific elements and characteristics of each enterprise. However, the structural outline of a business plan is consistent across most enterprise types. Even non-profit entities require most of the same basic elements. The basic outline is included below:

Introduction

  1. Purpose of the Business Plan
  2. Description of the Company
  3. History of the Company
  4. Current Products, Markets, Customers, and Vendors
  5. Current Ownership and Management
  6. Current Capitalization

 Strategic Goals and Objectives

  1. Definition of Target Markets
  2. Statement of Operational Goals and Objectives
  3. Statement of Financial Goals and Objectives
  4. Statement of Marketing Goals and Objectives
  5. Statement of Product Development Goals and Objectives
  6. Deployment of Manpower Resources
  7. Timetable for Plan Implementation
  8. Delegation of Responsibility for Managing Plan Implementation

Risk Factors 

  1. Technological Obsolescence
  2. Business Leverage Risk
  3. Financial Leverage Risk
  4. Insufficient Depth of Management
  5. Product Liability Risk
  6. Trade Regulatory Risk
  7. Foreign Exchange Risk
  8. Tax Rate Risk
  9. Proprietary Technology Infringement Risk

Industry Analysis

  1. Industry History
  2. Industry Trends
  3. Expected Development of New Products and Services
  4. Industry Growth Forecasts

Operations Plan

  1. Facilities Needs and Site Location
  2. Management
  3. Manpower Requirements
  4. Product Development
  5. Raw Materials Procurement
  6. Production and Product Assembly
  7. Quality Control
  8. Government Regulatory Compliance
  9. Warehousing and Inventory Management
  10. Patents and Proprietary Technology
  11. Internal Information Systems and Accounting
  12. Administrative and Support Functions
  13. Organization Chart

Marketing Plan

  1. Market Definition
  2. Product and Service Mix
  3. Pricing Strategy
  4. Advertising and Promotion
  5. Marketing Management
  6. Structure and Compensation of Salesforce
  7. Distribution Channels and Transportation
  8. Customer Service and Product Warranty

Financial Plan

  1. Projected Operating Revenue and Expenses
  2. Corporate Overhead
  3. Taxation Requirements
  4. Working Capital Requirements
  5. Capital Expenditures (Maintenance)
  6. Capital Expenditures (Growth)
  7. Liquidity Requirements
  8. Five-year Operating Cash Flow Forecast

Capitalization Plan

  1. Assessment of Projected Financing Needs
  2. Sensitivity of Financing Needs to Variance in Operating Performance
  3. Analysis of Current Cost of Debt and Equity Financing
  4. Asset Collateralization and Financial Guarantees
  5. Proposed Capital Structure and Ownership Shares
  6. Five-year Net Cash Flow Forecast
  7. Projected Liquidity, Leverage, Profitability, and Activity Ratios
  8. Projected Rate of Return to Debt and Equity Investors

Exhibits

  1. Historical Financial Statements
  2. Management Resumes
  3. Product Descriptions and Specification Sheets
  4. Company Advertising and Promotional Materials
  5. Vendor and Customer References
  6. Plan Implementation Matrix

When you’re ready to put your ideas for your business on paper, contact Van Amburgh Valuation Associates today via our online contact form or at 972-723-9500!

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