Business plan template.pdf

Projected balance sheet this is an estimate of what

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Projected Balance Sheet This is an estimate of what the balance sheet will look like at the end of the 12-month period covered in your projections. In the business plan section related to your projected balance sheet , state the assumptions that you used for all major changes between your last historical balance sheet and the projection. Breakeven Analysis A breakeven analysis determines the sales volume, at a given price, that is required to recover total costs. Expressed as a formula, breakeven is as follows. Breakeven sales = Fixed costs 1- Variable costs (Where fixed costs are expressed in dollars, but variable costs are expressed as a percentage of total sales.)
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Page 25 of 29 Appendices Include details and studies used in your business plan; for example: Brochures and advertising materials Industry studies Blueprints and plans Maps and photos of location Magazine or other articles Detailed lists of equipment owned or to be purchased Copies of leases and contracts Letters of support from future customers Any other materials needed to support the assumptions in this plan Market research studies
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Page 26 of 29 Refining the Plan The generic business plan presented above should be modified to suit your specific type of business and the audience for which the plan is written. For Raising Capital For Bankers Bankers want assurance of orderly repayment. If you intend to use this plan to present to lenders, include: Amount of loan. How you will use the funds. What will this accomplish (how will it make the business stronger)? Requested repayment terms (number of years to repay). You will probably not have much negotiating room on interest rate, but you may be able to negotiate a longer repayment term, which will help cash flow. Collateral offered, and a list of all existing liens against the collateral. For Investors Investors have a different perspective from bankers. They are looking for dramatic growth, and they expect to share in the rewards. Include the following in the plan that you present to potential investors: Funds needed short term Funds needed in two to five years How the company will use the funds, and what this will accomplish for growth Estimated return on investment Exit strategy for investors (buyback, sale, or IPO) Percentage of ownership that you will give up to investors Milestones or conditions that you will accept Financial reporting that you will provide
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Page 27 of 29 Involvement of investors on the board or in management Refine Your Plan for the Type of Business Manufacturing Present production levels Present levels of direct production costs and indirect (overhead) costs Gross profit margin, overall and for each product line Possible production efficiency increases Production-capacity limits of existing physical plant Production capacity of expanded plant (if expansion is planned) Production-capacity limits of existing equipment
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