Business plan template.pdf

Explain the daily operation of the business its

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Explain the daily operation of the business, its location, equipment, people, processes, and surrounding environment. Production How and where do you produce your products or services? Explain your methods of: Production techniques and costs Quality control Customer service Inventory control Product development Location Describe the locations of production, sales, storage areas, and buildings. Do you lease or own your premises? Describe access to your buildings (walk in, parking, freeway, airport, railroad, and shipping). What are your business hours? If you are trying to get an expansion loan, include a drawing or layout of your proposed facility. Legal Environment Describe the following: Licensing and bonding requirements Permits Health, workplace, or environmental regulations Special regulations covering your industry or profession
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Page 16 of 29 Zoning or building code requirements Insurance coverage Trademarks, copyrights, or patents (pending, existing, or purchased) Personnel Number of employees Type of labor (skilled, unskilled, professional) Where do you find new employees? Quality of existing staff Pay structure Training methods and requirements New hiring in the coming year? Who does which tasks? Are schedules and procedures in place? Do you have written job descriptions for employees? If not, take time to write some. Written job descriptions really help internal communications with employees. Do you use contract workers as well as employees? Inventory What kind of inventory do you keep: raw materials, supplies, finished goods? Average value in stock; that is, what is your inventory investment? Rate of turnover and how it compares with industry averages? Seasonal buildups? Lead time for ordering? Suppliers Note the following information about your suppliers:
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Page 17 of 29 Their names and addresses. Type and amount of inventory furnished. Credit and delivery policies. History and reliability. Do you expect shortages or short-term delivery problems? Are supply costs steady or fluctuating? If fluctuating, how do you deal with changing costs? Should you be searching out new sources of supply, or are you satisfied with present suppliers?
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Page 18 of 29 Credit Policies Do you sell on credit? If so, do you really need to? Is it customary in your industry and expected by your clientele? Do you carefully monitor your payables (what you owe to vendors) to take advantage of discounts and to keep your credit rating good? You need to carefully manage both the credit you extend and the credit you receive. Managing Your Accounts Receivable If you do extend credit, what are your policies about who gets credit and how much? How do you check the creditworthiness of new applicants?
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