UMLF Business Plan Outline

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A business plan is a difficult but necessary part of starting a new business or growing an existing business successfully. It is a game plan for success!

•  If you are attempting to receive funding from a financial institution,

•  Your business plan needs to provide the reader with the information/data that gives them assurance your business will achieve your projected results.

•  The Business Plan and Cash Flow Projection are two documents that should be prepared together, they are an integral part of each other! Your Cash Flow Projections will be the tool used to evaluate your business’s ability to pay the loan back.

•  Remember to be very conservative in projecting what your business will achieve in the future.

•  Also remember to write your business plan as if to someone who knows nothing about your business.

Summary

Briefly summarize the highlights and most significant issues in your plan. It tells the reader who you are, what you are planning, why you are planning it, how you will operate your business, and when you will do it.   

•  What’s the name and nature of your business? (For example: “Betty’s Salon is a beauty salon providing a full range of services for the elderly, upscale woman.”)

•  Why did/are you starting it (what are your personal reasons)?

•  Where is it located?

•  If you’re just starting, when do you plan to be open for business?

•  Who is/are the owner(s) of the business? If more than one, who owns how much?

•  What organizational structure is your business (Sole Proprietorship, Limited Liability Company (LLC), Corporation, Partnership)?

Use of Funds/Start-up Costs

•  If just starting, how much will it cost to start your business (itemized costs)?

•  How will you fund the start-up?

•  How much do you need to borrow from UMLF?

•  What, specifically, will you use the loan for?

Product or Service

What will you sell? Where will you sell it? How much will you charge? This will most likely be the easiest section for you to complete. Remember this is the first building block to understanding/evaluating your cash flow projections.

•  What product or service do you (are you) going to sell? What does your business do ?

•  Who’s the competition? How is your product/service different from the competitors (i.e., why will someone choose your product/service over the competition)?

•  If you’re making/manufacturing a product, how will you do it (what’s the process)?

•  How much will it cost to offer/produce your product or service?

•  How will you price your product or service?

•  How will you sell your product or service (i.e., your store, other outlets, distributors, etc.)?

Market

This is one of the most difficult and important portions of the proposal, and often the most overlooked. A large amount of research is often required. This section answers the question: Who will buy your product(s)/services and whether there is enough demand/market for your product. This is vital in evaluating your revenue/sales projections.

•  Who will buy your product or service—i.e., who is/are your “target market(s)”? (individuals, companies, government, etc.)

•  What is the “profile” of your most likely customer? (male/female, age, profession, income level, geographic location, etc.)

•  Why will they buy your product or service—i.e., what need or want does your product/service address?

•  Where will you sell your products/services (geographically)?

•  How do you know they’ll buy it—i.e., have you tested demand for your product/service?

•  What’s the potential growth in your target market(s)?

•  Who are your competitors? How do you compare to them in terms of strengths and weaknesses?

•  How will you provide a “better value” to your customer than a competitor would? (lower price, better service, more convenient location, better advertising, etc.)

Marketing/Communication Strategy -

This section answers the question: How do I turn a potential customer into a customer? It lets us know how potential customers will learn about your product(s)/service. The reader will hopefully read this section and be convinced that your Sales/Revenue and Marketing cost projections are realistic.

•  What’s your marketing message?

•  How will you attract and communicate with your target markets (e.g., word of mouth, flyers, paid advertising, internet, etc.)?

•  How much will your marketing strategy cost?

•  How do you know that it will be effective?

Management

This section convinces the reader that owners and key managers are capable of running the proposed business successfully. Include:

•  What’s your experience in managing this type of business?

•  What skills and experience do you bring to this business that will make it a success? (experience in bookkeeping, managing employees, sales, etc.)

•  Who else will help you management the business and what skills and experience do they bring to this business that will make it a success?

•  Are there other resources (e.g., consultants, attorneys, CPAs) who will help in managing your business? If so, who?

•  Will you be hiring employees? If so how many and when?

•  How you will manage the bookkeeping/accounting functions associated with running a successful small business?

Financial Information

This section (1) shows how the business has performed in the past and (2) convinces the reader that you know how much money needs to come in and out of your business each month to be sure to cover all operating costs and have cash left over at the end of the month.

•  For an existing business, include past profit and loss statements and a monthly cash flow projection

•  If you are just starting, include a detailed, monthly cash flow projection for at least one year.

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