Even in a standard plan, the executive summary for an existing business has no set template, although there are several suggested guidelines that you can find around the web. Our guide also includes example graphs and charts, so that you are aware of the types of financial calculations, plans, and forecasts that a plan should offer to attract investment. To accomplish this, you should highlight: Tip: Don’t include details about members of the Management Team that are not relevant to the reader. Whether you are already running a business, or making plans to start one up, financial planning is a vital part of ensuring your success. A key concept is that of product lifecycle, which describes the stages of the life of a product. There are often few returns the first year or two. Fixed price: Suitable for most sales forecast modeling. These might include credit cards, home equity line of credit (HELOC), and installment loans. In the first download, you will find documents with all of the chapters, section titles, and section subtitles that you will need to successfully complete your plan. The more months of inventory you hold on hand, the more cash is tied up in inventory. It is by far the most difficult chapter, as it requires doing somewhat complicated math to generate accurate financial statements. Completely free – no hidden costs, just download and start writing. 2. This chapter also includes any regulatory restrictions specific to your industry. It is particularly important in the event of search for aid or financing since it will be analyzed by the potential financiers and in particular the bankers. Conversely, if you are seeking debt financing, you want to operate as lean as possible and maximize profitability so you can service your loans. Microsoft Excel software under a Windows environment is required to use this template. We provide free business planning classes, personal technical assistance and low cost microloan funding. It may also consist of estimated sales and profit as well. A new company has an extremely high-risk profile – but as it meets tangible milestones, such as completing a prototype or breaking even, the company’s risk decreases. Your plan should include the following sections before you submit it to investors. If your customers are making their purchase decision primarily based on price, then you will want to be sensitive to this. These Excel template business plan financials work on all versions of Excel since 2007. The Profit & Loss (i.e. Legal Templates cannot and does not provide legal advice or legal representation. Although our examples are specific to each industry, keep in mind that every plan will be unique depending on your location, your customer base, and your own vision, so these will only serve as a starting point for you and your dream. For example, Apple’s mapping software is playing catch-up to Google Maps. What business will you be in? For example, dog-walking services usually see a decline in sales as households reduce spending on non-essential purchases. The report here is a read-only display. Choose a well-respected and well-known individual as the first member of your Advisory Board. Click the links below to download (1) a blank document, and (2) a document that is filled in for you to reference. Download and Print for Free (MS Word & PDF). Is this location consistent with your target customer? Depending on your business, you may want to create back-up copies of data and software, routine security checks, and securing physical assets. Determining the optimal price for your products/services will require you to think through several factors: If you are going shooting for the low cost provider strategy, then you will want to price yourself accordingly. Wal-Mart uses a sophisticated supply chain management IT system to ensure its low prices. They are also print-ready and can be shared digitally. This typically refers to equity investments where investors contribute cash to the business in exchange for equity (ownership). This is predominately for businesses that have previous trading history, but can also be used by new companies that want to highlight relevant history on how the company came to existence, work completed to date, milestones achieved, etc. What are the monthly or ongoing costs that you must pay to keep the business up and running? Some key points: Technology in today’s business environment is becoming more and more important and serves as a source of competitive advantage. Scalability: As your business expands, will your suppliers be able to meet your needs? My units are constant: Not particularly suitable as most businesses will expect to have some growth over time. Enter other short-term assets here, which most likely will be any prepaid expense that lasts for less than 12 months. If you have parts, what is your cost and/or what is your average % mark-up? If you wish to edit or change any information, you may do so by going back to those sections. Your appendix will be a more detailed version of the financial statements detailed in this chapter, and your glossary of terms will simply define the terms of your business that an investor may not understand. Excel balance sheet template for small business, Excel quotation template spreadsheets for small business, Excel template for small business accounting, Yearly business budget template Excel free, Microsoft Excel sheet template for small business, Excel spreadsheet template for small business expenses, Business model canvas template Excel free, Excel product catalog template free download. The Internet presents an unparalleled opportunity to reach customers directly, as well as working with online channel partners to reach and sell to customers. Letters of support from future customers, strategic partners, etc. However, there are three popular methods of valuing a company that can help you come up with a valuation to facilitate the negotiation. What is the consumer really buying? Any business plan involves the development of a financial plan. For our purposes (context of a private company that is most likely a startup or small but growing business), a Board of Directors is comprised of investor(s), founder(s), CEO and independent board member(s) who have substantial business and industry experience. Tip: Your sales forecast should sync with your Sales and Marketing plan. 1. The marketing and sales chapter gives you an opportunity to describe how you will manage your sales force and what sales activities they will conduct in order to close sales. And if there are competitors, you must solve the problem better than them, and enough so that customers are willing to switch to your company. They are best when quantifiable and measureable. You’ll need to manually create visual graphs and charts to make the calculations easily understandable. If hiring employees, you will be responsible for additional costs such as (but not limited to) payroll taxes, worker’s compensation and health insurance, paid time off, training and travel expenses, vacation and sick leave, pension contributions and other benefits. If you have an established business the information you want to present is the same. Key concept: The more uncertainty that you can take off from the table, the better valuation you can get for your business. It becomes more apparent that the venture will succeed. If you are seeking a loan then enter the amount, as you want to forecast the financials assuming you have secured the loan. A sales plan is specifically for sales personnel. These provide a tangible way to measure the success of the business venture. Is your retail or production location zoned properly? ; Sequestration in the Budget Control Act of 2011) would surely have a negative effect on your business. Step-by-step writing guide and writing samples included. % of sales: A good way to forecast costs; as sales increase you can set the cost as a % of sales on a sliding scale. This article provides details of Excel template business plan financials that you can download now. Sound good? Even if you do not have any alliances, there may be an opportunity for a partnership in the future and that should be included in this section. For existing businesses only. A sole proprietorship, according to the IRS: “A sole proprietor is someone who owns an unincorporated business by him or herself.”. Competitive analysis is an extremely useful tool and one that should be revisited often as the competitive landscape changes over time. Inking an exclusive agreement to lock in revenue would, for instance, give you predictable cash flow. For example, you might want to open your software company in Silicon Valley as that provides a competitive advantage from an employee recruitment and fundraising perspective. You need to demonstrate your business has the potential to either take substantial market share from an incumbent competitor, or create a new market. Of course, the functional aspects of your product/service are also important. A basic template won’t allow you to track your business’ progress. Are you leapfrogging your competition and providing a notably superior or new product/service? Cool idea, how do you make money with it?