Creating a business plan is essential for the success of a small business. This session, based on the book by Tom Shay, shares the key steps in writing your own business plan.

1. www.profitsplus.org
Presented by Tom Shay of
Profits Plus Solutions
727-464-2182
tomshay@profitsplus.org

2.  “I didn’t plan on this
happening.”
 “You didn’t plan at all!”
www.profitsplus.org

3.  The business plan is more for
you than it is for a lender
 “I was a bank officer for 25
years and I don’t understand
all of this financial stuff.
Thanks for the help.”
www.profitsplus.org

4.  Cover page - Business name,
principals, address, info on
preparer
 Table of contents
www.profitsplus.org

5.  Introductory statements
 Vision statement – What your
business looks like in three to
five years
 Going somewhere – not just
getting the doors opened
www.profitsplus.org

6.  Mission statement – Telling
people how you want others
to see your business with
regard to customers,
products and services
www.profitsplus.org

7.  Statement of purpose – Who
you are, what you are going
to do, what you want with
regard to funding
www.profitsplus.org

8.  The statement of purpose
 Borrowing money? How
much; how long; why.
 “We are expecting to
borrow $xx for x
years
to ….”
 Details of
money come later
www.profitsplus.org

9.  The executive summary
 The ‘Cliff notes’ page of your
business plan.
My Business Plan
www.profitsplus.org

10.  In 30 seconds, this is the wrap
up of your business plan
www.profitsplus.org

11.  The company description
 Who, what, when, where, why
www.profitsplus.org

12.  Tell the story – sell the story
 Your theory, the
circumstances, seasonal,
politics, hours, partnership,
your niche, making money
www.profitsplus.org

13.  Start with the name and
begin to sell after that
 Explain the products and
services you sell and who you
sell to
www.profitsplus.org

14.  The marketing plan
 The image – what customers
think about the business.
www.profitsplus.org

15.  The brand – what you create
to develop the image.
 Marketing - how you project
your brand
www.profitsplus.org

16.  Competitive analysis – who
else is asking for that
customer’s discretionary
income?
 What is the competition good
at?
 What do
they do
poorly?
www.profitsplus.org

17.  Advertising – how are you
going to tell your story?
 Social media; cause
marketing
 Repeat, referral customers
www.profitsplus.org

18.  Management and personnel
 Your experience in the industry
 Your experience as an owner
 Your experience as a manager
www.profitsplus.org

19.  Who you gonna hire?
 Hiring for product/technical
skills or people skills?
 How are you going to teach
them?
www.profitsplus.org

20.  Business legality format – 6
options
 Sole proprietorship
 General partnership
 Limited partnership (lp, llp,
lllp)
 C corporation
 S corporation
 LLC
www.profitsplus.org

21.  Financial
 Capital structure
– 50/50?
 Loan or contributed
capital for growth?
 Buy out agreement?
www.profitsplus.org

22. Income Statement
Cash Sales 62,000
Cost of Goods Sold 39,370
Gross Profit 22,630
Gross Profit Percentage 36.5%
Operating Expenses:
Wages 12,000
Payroll Taxes 960
Property Taxes -
Rent 8,000
Telephone & Utilities 2,400
Repairs 150
Advertising 1,575
Accounting & Legal 200
Automobile 140
Bank Charges 210
Computer Operations 175
Dues & Subscriptions 300
Insurance - General & Workman's Compensation 800
Licenses & Taxes (not sales tax) 100
Office & Store Supplies 300
Outside Services 250
Travel 1,000
Total Operating Expenses 28,560
Operating Income (5,930)
Other Income and Expenses:
Miscellaneous Income -
Interest Income 265
Interest Expense -
Net Income Before Taxes (5,665)
Federal Income Tax -
Net Income (Loss) (5,665)
 Budget
www.profitsplus.org

23.  Cashflow plan
www.profitsplus.org

24.  Cashflow plan
A B C D E
1 EZ Cashflow (TM) Cash Basis
2
3 For Month Ending: 1/31 2/28 3/31
46 Cash Balance, Beginning of Month P/C 17,500 9,445 (14,627)
47
48 Net income (Loss) C (4,585) (9,400) 4,465
49
50 Add:
51 Cost of Goods Sold C 39,370 41,275 44,450
52
53 Less:
54 Inventory Purchases of Previous Month P 42,000 54,850 47,500
55 Freight In of Previous Month C 840 1,097 950
56 Principal Payments on Loans P - - -
57
58 Cash Balance, End of Month C 9,445 (14,627) (14,162)
www.profitsplus.org

25.  Personal financial statement
www.profitsplus.org

26.  Startup expenses –
 What are you going to spend
before you take in your first
dollar from a customer?
www.profitsplus.org

27.  Profit and loss projection –
 This is the cashflow plan
without the cashflow
component
 Profit is not cash
www.profitsplus.org

28. 12/31
ASSETS
Current Assets:
Cash on hand $1,500.00
Checking Account $17,500.00
Savings Account $3,050.00
Accounts Receivable $14,215.87
Bank Card Receivable $1,340.34
Inventory $275,654.23
Total Current Assets: $313,260.44
Investments:
Cooperative Stock $23,125.46
Cooperative Notes $12,597.47
Total Investments: $35,722.93
Long Term Assets:
Property and Equipment:
Fixtures and Equipment $126,245.11
Building $325,465.88
Total Property and Equipment: $451,710.99
Accumulated Depreciation: $207,950.25
Total Net Property and Equipment: $117,515.63
Other Assets:
Utility Deposits $1,700.00
Total Other Assets: $1,700.00
Total Assets: $468,199.00
LIABILITIES AND EQUITY
Current Liabilities:
Accounts Payable $47,850.00
Building mortage - current $24,000.00
Note payable - current $45,000.00
Long Term Liabilites:
Building mortgage $62,000.00
Note payable $84,000.00
Total Liabilities: $262,850.00
Stockholders' Equity
Capital Stock $65,000.00
Retained Earnings $114,664.00
Current Income $25,685.00
Total Stockholders' Equity $205,349.00
Total Liabilities and Equity $468,199.00
 Balance sheet
projection
www.profitsplus.org

29.  Check the ratios – lenders are
looking for:
 Debt to equity
 Current ratio
 Return on investment
www.profitsplus.org

30.  Break even analysis –
 How much income does it
take each month to keep the
doors open?
www.profitsplus.org

31.  Advertising, marketing,
promotion
 With detail how much, where
and when are you spending
your money?
www.profitsplus.org

32. The credit belongs to those people who
are actually in the arena - who know the
great enthusiasms, the great devotions to
a worthy cause -
Who at best, know the triumph of high
achievement; And who, at worst, fail
while daring greatly …
So that their place shall never be with
those cold and timid souls who know
neither victory or
defeat.
- Theodore Roosevelt
The Essence of Achievement
www.profitsplus.org

33. 33

34. www.profitsplus.org