BUSINESS PLAN

Business Plan
Business plan is a strategy to achieve the

objectives of the proprietors of business. A business plan prepared for a bank or investors should include the evidence of market potential along with projected sales of the business. It is a written document which sets out all the important facts about the business its history, current position, objectives & business activities to be undertaken.

Process of creating a business plan

Following are the steps involved in creating a business plan which is widely followed: 1. Executive Summary: this is the most concise form of business plan which covers all the key points.

Any outsider will first review the executive summary to understand whether the business plan has potential.

Business Plan
Executive Summary should include:

a) A brief description of the business concept

b) c) d) e)

& proposed business model An overview of market potential Summary of managerial skills Overview of financial forecasts & expected returns for business Purpose of the plan (eg. attract investment capital, management tool)

Business Plan
A cover sheet is to be attached before the

summary that includes the name, address, telephone number, website & other general information about business

2. Business Overview: this is a summary of the current state of venture. It describes who will be the principal owners or whether it will be a partnership firm.

Business Plan
Business overview should contain: a) Business goals & objectives b) Products or services offered c) How the business will profit in the near

term & long term d) Strategy that will be used to be successful in the market e) What is your competitive advantage?

Business Plan
3.Product/Service Description: This involves a description of the product/service that the organization will sell & the benefits that it will provide to the customers. This should include the features that the company is going to offer which differentiates it from its competitors. The description should cover product features, benefits, pricing, current status of the product/service development.

Business Plan
4. Market Analysis: This section reflects the entrepreneurs knowledge of his/her industry & presents highlights & analysis of the market research. It should outline who is going to be the potential buyer of the product/service. This section should include a) Market definition ( who will buy & why?) b) Market segmentation c) Size of the market

Business Plan
d) Identification of target market

e) Customer buying practices (description)

Description of market trends & growth potential 5. Marketing Plan: This section includes a review of industry conditions & a plan for promoting & selling the product or service It should contain marketing objectives, mode of communication(promotion, advertising, PR, printed material etc)
f)

Business Plan
It should also include the channel of

distribution to be used (internal sales force, distributors, retailers) And the marketing budget that has been decided for the above activities 6. Operations Plan: this deals specifically with the internal organizational structure, operations & the equipments that will be required to operate the venture It describes how the business will be owned & managed & what is the personnel requirement

Business Plan
7. Management Plan: this section emphasizes on the managements talent & skills & how they are different from the competitors. It should include a detailed schematic diagram of the organization structure, strengths & weaknesses of the management team & strategies for recruitment & selection

Business Plan
8. Financial Plan: This section states the sources of fund for the project & how it will be used. It should include: a) How much capital is required to start or expand the business? b) What will be the break even point? c) Projected statements for the first three years ( Profit & Loss, Balance Sheet) d) Explanation of assumptions used in developing financial projections.

Business Plan
9. Appendices or Exhibits: additional details or confidential information is presented here. This section is bound separately and should provide information on : a) Resumes of key managers b) Pictures of product c) Patents d) Contracts (leases, agreements if any, insurance taken etc)

SAMPLE BUSINESS PLAN

Document Shredding Business Plan Security First Shredding

Executive Summary Theft, vandalism, and industrial espionage are

becoming ever increasing security problems. There are too many horror stories resulting from confidential information getting into the wrong hands. Today's information explosion can be devastating to a business. With the increased use of office copiers and computers, staggering amounts of sensitive information is being generated and carelessly discarded.

Executive Summary (Cont.)

Security First Shredding is a professional paper

shredding company, providing the most secure, efficient, simple and cost effective plan available for destroying a company's confidential information. Security First Shredding provides complete on-site and off-site document destruction services. Security First Shredding will service companies in the Madison area. The company has experience in product destruction as well as the shredding of microfilm, microfiche, credit cards, computer tapes and other forms of media storage.

Executive Summary (Cont.)

A certificate of destruction will be provided with

each invoice. We also offer recycling programs for non-confidential documents. Janet Wilson, co-owner of Security First Shredding, has ten years of experience in the field of document destruction. She has worked for both Shredd-All and Capital Shredding in New York, before moving to the Madison area last year. Security First Shredding will have two state-ofthe-art disposal trucks that can shred documents at the business site or transport it to a recycling center for disposal.

Highlights

MISSION
1.1 Mission
The mission of Security First Shredding

is to provide a cost-effective document disposal service that protects our customers demand for security.

OBJECTIVES
1.2 Objectives Achieve sales goal during first year of operation. Achieve a customer base of 100 companies. Increase sales by 15% during the second year of operation.

COMPANY SUMMARY
Security First Shredding is a professional

paper shredding company, providing the most secure, efficient, simple and cost effective plan available for destroying a company's confidential information. Security First Shredding provides complete on-site and offsite document destruction services. The company will be organized as a limited partnership. Security First Shredding has an 8,000 square foot facility located in the Westside Industrial Park. The park anchors the industrial section of the city and is within easy access of 80% of

START UP SUMMARY
The start-up expenses for the Security First

Shredding is focused primarily on disposal equipment, disposal bins, and disposal trucks. Janet Wilson and the silent partner will each make substantial investments in the company. In addition, Wilson will secure a long-term loan business loan.

Start-up Funding Start-up Expenses to Fund $249,600

Start-up Assets to Fund

Total Funding Required Assets

$80,400
$330,000

Non-cash Assets from Start-up

Cash Requirements from Start-up

$0
$80,400

Additional Cash Raised

Cash Balance on Starting Date

$0
$80,400

Total Assets

$80,400

Liabilities and Capital Liabilities

Current Borrowing
Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities

$0
$100,000 $0 $0 $100,000

Capital Planned Investment Janet Wilson Silent Partner Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital Total Capital and Liabilities Total Funding $80,000 $150,000 $0 $230,000 ($249,600) ($19,600) $80,400 $330,000

START UP REQUIREMENTS
Start-up Expenses
Legal Stationery etc. Brochures Insurance Rent Disposal Trucks Disposal Bins Disposal Equipment

$2,000 $600 $4,000 $1,000 $2,000 $110,000 $50,000 $80,000 $249,600

Total Start-up Expenses Start-up Assets Cash Required Other Current Assets Long-term Assets Total Assets Total Requirements

$80,400 $0 $0 $80,400 $330,000

Company Ownership
Security First Shredding is owned by Janet

Wilson and a silent partner.

Services
Security First Shredding offers the following services: Security On-site document destruction service is the safest, most secure, and convenient means of disposing of your sensitive documents. Our bonded uniformed employees will take a customer's classified documents from the security bins that we provide for the office directly to the mobile shredding unit where the materials will be destroyed.
Efficiency

The high-speed shredders mounted on our trucks are 40 times faster than most office shredders, reducing a customer's cost of shredding by over 25%.

Services
On-site destruction services

Security First Shredding will provide security bins to be placed throughout the office area. These bins have a built in lock to ensure documents cannot be removed without a key. The material will be destroyed on-site and the shredded paper will then be taken to our facility where it will be recycled. Off-site destruction services Security First Shredding also offers off-site document destruction. We will still supply the customer with security bins but the materials will be brought back to our facility to be shredded. In addition to the security consoles for the office, we offer 65-gallon schafer containers. These schaefer containers are used for high volume areas. Customers with large volumes of paper find this to be the most economical way to handle classified materials.

Market Analysis Summary

Theft, vandalism, and industrial espionage are becoming ever

increasing security problems.

There are too many horror stories resulting from confidential

information getting into the wrong hands. Today's information explosion can be devastating to a business. With the increased use of office copiers and computers, staggering amounts of sensitive information is being generated and carelessly discarded.
Outdated or inactive company files can also become damaging

once they have reached their legal limit of retention. Shredding this information protects a company against potential lawsuits.
The supreme court has ruled that information in the trash is "fair

game" to anyone. Privacy laws make any company vulnerable to law suits when personal records are disclosed to outsiders--even by accident.

Market Analysis Summary

Theft, vandalism, and industrial espionage are becoming ever

increasing security problems.

There are too many horror stories resulting from confidential

information getting into the wrong hands. Today's information explosion can be devastating to a business. With the increased use of office copiers and computers, staggering amounts of sensitive information is being generated and carelessly discarded.
Outdated or inactive company files can also become damaging

once they have reached their legal limit of retention. Shredding this information protects a company against potential lawsuits.
The supreme court has ruled that information in the trash is "fair

game" to anyone. Privacy laws make any company vulnerable to law suits when personal records are disclosed to outsiders--even by accident.