Business Plan

Business Plan
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This document is confidential.
Table of Contents
Table of Contents.................................................................................................................2
Executive Summary.............................................................................................................
!ision"#ission Statement and $oals...................................................................................%
&. !ision Statement.........................................................................................................%
'. $oals and (b)ectives..................................................................................................%
C. *eys to Success...........................................................................................................%
Company Summary.............................................................................................................+
&. Company 'ackground................................................................................................+
'. ,esources- .acilities and E/uipment..........................................................................+
C. #arketing #ethods.....................................................................................................+
0. #anagement and (rgani1ation...................................................................................+
E. (2nership Structure....................................................................................................+
$. 3nternal &nalysis.........................................................................................................4
5roducts and"or Services......................................................................................................6
#arket &ssessment..............................................................................................................7
&. External &nalysis........................................................................................................7
'. Customers....................................................................................................................7
C. Strategic &lternatives..................................................................................................7
Strategic 3mplementation.....................................................................................................8
.inancial 5lan....................................................................................................................99
&. .inancial 5ro)ections.................................................................................................99
'. Contingency 5lan......................................................................................................99
#onitoring.........................................................................................................................99
2
Executive Summary
This section is a summary of the information from the pages that follow. Prepare it last,
after the business plan has been written. It should not exceed two pages. Headings to use
in the Executive Summary
!. "ision#$ission Statement
%. &ompany Summary
&. Products#Services
'. $ar(et !ssessment
E. Strategic Implementation
). Expected *utcomes

Vision/Mission Statement and Goals
A. Vision Statement
The vision#mission statements are clear summaries of where the business is headed. It
describes what the business produces, who products are produced for, and uni+ue
business characteristics. It will reflect the values of the management team and the type of
business culture you are trying to create.
B. Goals and Objectives
,hat do you want your business to achieve- %e specific in terms of financial
performance, resource commitments .time and money/ and ris(.
,hen will various milestones be achieved-
C. Keys to Success
,hat do you need, or must happen, for you to succeed-
%
Company Summary
The material in this section is an introduction to the firm.
A. Company Background
,hat does your business do-
,ho were the founders of the business-
,hat were the important milestones in the development of the business-
B. Resources !acilities and "#uipment
,ith what do you produce your products or services-
,hat are the land, e+uipment, human and financial resources-
,ho provides them-
How are resource providers rewarded-
C. $arketing $et%ods
,hat is your annual sales volume in dollars and units-
Explain how you wor( with others to improve returns. This may include a strategic
alliance with suppliers or customers that you can leverage.
'o you use forward contracting, options, or futures- If so, how-
How much does it cost to produce and deliver your products and services-
How is contracting used-
&. $anagement and Organi'ation
,ho is currently on the management team-
How have management responsibilities been divided among the management team-
,hat are the lines of authority-
,ho acts as the president#&E*- spo(esperson- &hief )inancial *fficer-
,ho determines employees0 salaries and conducts performance reviews-
,hat is the educational bac(ground of the management team members-
,hat is the management team0s reputation in the community-
,hat special s(ills and abilities does the management team have-
,hat additional s(ills does the management team need-
,ho are the (ey people and personnel that ma(e your business run-
,ho do you go to for advice and support-
'o management and employees have avenues for personal development-
S(etch a diagram of lines of authority for your operation.
". O(ners%ip Structure
,ho are the primary sta(eholders in your business-
'escribe the legal form of your company, such as partnership, proprietorship, or
corporation.
'o you need special permits to operate, or a record for inspections- If you do, please
describe them.
+
!. Social Responsibility
,hat environmental practices do you follow-
,hat procedures do you use for handling chemicals-
,hat noise#dust#timing#odor policies do you have-
,hat will be the roles of management and employees in community organi1ations-
,hat will be your involvement at the local#state#national level in commodity
organi1ations-
,hat training and new employee orientation practices will you offer to insure proper
handling of ha1ardous materials and safe operation of e+uipment-
G. )nternal Analysis
,hat are the strengths and wea(nesses of your firm-
,hat are the relative strengths of each enterprise or business unit within the firm-
,hat are the core competencies .things you are doing better than others/ of your firm-
,hat things can you build on- Thin( only about the things that you can control.
Suggested areas to consider
• (nowledge and wor(
• financial position
• productivity
• family
• lifestyle
• location
• resources
,hat enterprise or business unit should be exited-
,hat enterprise or business unit shows promise-
4
Products and/or Services
'escribe the products and services you plan to sell.
How is your product or service uni+ue-
!re you producing a commodity or a differentiated product-
How does your product or service compare to other products in
2uality- Price- 3ocation-
,hat experience do you have with this product#service-
6
Market ssessment
A. "*amining t%e General $arket
How is the mar(et characteri1ed-
!re there clear segments in the mar(et- 'escribe them.
,hat important customer need.s/ is the mar(et not currently fulfilling-
,hat is the growth potential for each segment of the mar(et-
,hat opportunities and threats does your firm face-
,hat does an analysis using the )ive )orces model suggest about your industry- ,ho is
your competition .in light of the )ive )orces/-
,hat trends, relevant to your business, do you see-
,hat are the drivers of change-
,hat political and legal issues do you face, such as 1oning, environmental laws,
inspections, etc-
B. Customer Analysis
,ho will be your customers-
,hat do you sell to each of the customers-
How does your product#service solve a (ey customer problem-
How difficult is it to retain a customer-
How much does it cost to support a customer-
C. )ndustry Analysis
&. Strategic Alternatives
7
Strate!ic "mplementation
A. +roduction
How will you produce your product-
,hat value will you create and capture with your product-
,hat is your competitive advantage-
,hat technology will you use, i.e. reduced tillage, 4PS systems, etc.-
,hat processes will you use to produce products-
,hat growth options will you use to develop the business unit-
• Enterprise Expansion
• 5eplicate
• Integrate
• 6etwor(
,hat is the anticipated timeline-
B. Resource ,eeds
In order to effectively organi1e your business you need to insure the resources are
available. !ssess those needs here.
a- .uman
,hat s(ills are needed-
How will human resources be ac+uired-
b- !inancial
,hat level of financial resources will be needed-
c- +%ysical
,hat type, +uantity and +uality of physical resources will be re+uired-
C. Sourcing/+rocurement Strategy
*n what do you base a decision to buy products or services- Price- 2uality-
&onvenience- Extra service- ! combination-
%y what venue will you find suppliers 7 local dealer, Internet, direct from manufacturer,
etc.-
&. $arketing Strategy
,hat is your sales plan-
,hat advertising and promotion will be used to increase sales#awareness-
,here will you sell products#services-
,ill you use the open mar(et or contracts-
'o you have a preferred mar(et outlet-
!re you a +ualified supplier for a specific processor or buyer-
How will you price the product-
8
a: .edging 0or(ard pricing options
How will you use these to mitigate your ris(-
b: Contracting
,ill you use production or mar(eting contracting to reduce ris(-
c: )nsurance
How will you use crop, liability and other insurance-
". +er0ormance Standards
,hat performance standards will be used to monitor this enterprise or business unit-
,hat are acceptable performance standards-
,hat yield or output levels could you attain-
,hat efficiency levels will you reach-
,hat procedures will be used to monitor performance-
,ho is responsible for monitoring performance-
,hat industry benchmar(s will be used to assess performance-
9;
#inancial Plan
A. !inancial +rojections
How will you fund the business-
,hat is your desired debt and e+uity position-
,ho will provide capital debt funds-
,hat role will leasing play in your financial strategy-
,ill you use outside investors for e+uity capital-
How will you manage the financial ris(s your business faces-
,hat operating procedures, such as developing cash flow budgets or spending limits,
will you have to ensure ade+uate money for debt repayment-
,hat are the important assumptions that underlie your pro8ections- These assumptions
may be associated with both external or internal factors.
,hat financial aspects of your business .e+uity, asset growth, 5*!, 5*E, etc./ will you
monitor-
,hat procedures will be used for monitoring overall business performance-
,hat level of performance will your business shoot for- These should be targets for next
year and in five years. They should be financial performance standards used to monitor
the overall business.
,hat yield and output levels could you attain- ,hat efficiency levels will you reach-
B. Contingency +lan
,hat will you do if you can0t follow through with your primary plan-
How are you preparing for an emergency in your business-
How will the business function if something happens to one of the (ey members of the
management team-
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