COMPANY OF YOUR CHOICE* GUIDELINES • You will create a business plan for a company of your choice. • You must focus on a very specific product or service. • *The instructor will approve your company in a reply to yourWeek 1 discussion post in which you will describe this business. You will revise your
work based on feedback provided. • You must adhere to the guidelines in this document. • You will be the CEO of the new business. • You will develop the business plan with the intention to raise funds and increase sales.
Key Business Plan Parameters Key
Parameter Explanation Business Size You are a startup not yet in operation. You have been operating from your home, but sales are small. You will develop the business
plan with the intention to raise funds and increase sales. Your sales must be over $1 million by the end of the second year. Product or Service Be specific about the product or service on which you are focusing and how you will differentiate yourself from similar products or
services in the marketplace. Market Size You will start marketing and selling the product or service in your geographical area within a 100-mile radius from your home.
Existing Funds You already have some funds (small loan, savings, et cetera).
Intention to Raise Money
To grow the business further, you will need funds from outside investors, either angels, venture capitalists, a group of individual investors on Kickstarter.
Facility You will rent or purchase.
Employees You will have employees, and you will develop your own organizational hierarchy.
Annual CEO Salary
As CEO you have the option not to draw a salary in the first year of business.
1
Specific Business Details This table identifies specific details you need to consider in your business plan. Reflect any costs in your business plan narrative and in the Business Plan Financials Excel Template. The f inal column specifies the specific worksheet within the Business Plan Financials Excel Template where you need to input data.
Item Worksheet Within the Business Plan Financials Excel Template
EQUIPMENT PURCHASES AT THE START OF THE BUSINESS AND AS THE BUSINESS GROWS Examples:
• Production equipment • Vehicles for distribution • Computers • Software • Printer
Capital Expenditures Worksheet
PERSONNEL Current Personnel CEO (you) Considerations:
• Your goal is to reach sales of over $1 million by the end of the second year. You will need to hire personnel in all areas of the business to meet this goal.
• Consider increasing the number of employees in operations in the second year as sales increase.
Staf f Budget Worksheet
BUSINESS EXPENSES Marketing ExpensesProfessional Services
• Consultants • Attorneys • Accountants • Industry specialists
Inventory Purchases (as needed)
Marketing Budget WorksheetProfessional Services Worksheet
Inventory Worksheet
2
Item Worksheet Within the
Business Plan Financials Excel Template
Additional Expenses• Telephone/fax • Business insurance • Off ice supplies • Mailings and postage • Building maintenance • Utilities, including
o Water/sewer o Gas o Electricity o Trash removal
Income Statement Worksheet
FINANCIAL INFORMATION Available Funds Balance in the bank from loans and savingsFuture Funds You will need to raise funds from investors. You will determine this based on how much you plan to grow the business.Reminder:
• You will need to pay taxes. • You will determine sales projections.
Capital Investments Worksheet
Cash Flow Statement Worksheet Sales Projections Worksheet
3
Guide to Complete the Business Financials Excel Template The Business Plan Financials Excel Template is the base pro-forma financial statement for your business. Complete the worksheets in order.
Worksheet Data Entry Worksheet #1: Set Up and Assumptions Line 9—Enter the month the academic quarter starts.
Line 12—Enter the year the academic quarter starts.Line 15—Enter 2; you choose the number of product lines you will have up to 10 lines. Line 21—Standard default is 30 days, you may adjust this for your business.Line 43—Enter the balance in your bank account as you open your business. Remember you were selling from home.
Worksheet #2: Sales Projections Speculate how much your company will grow and how much you will sell.Ref lect this information in the Operations Section of Your Business Plan (Week 5 Discussion and Week 8 Assignment). You will need to reach sales of over $1 million by the end of the second year.
Worksheet #3: Inventory (adjust as needed) Enter the cost of ingredients, packaging, bags, et cetera. Repeat these lines for each product line.
Worksheet #4: Capital Expenditures (applies to purchased NOT leased equipment)
Insert the cost of your facility, equipment, vehicles, computers, et cetera, you decide to purchase.
Worksheet #5: Staffing Budget Account for every paid employee using the appropriate lines for the six categories of employees
1. Management 2. Administrative/Support 3. Sales/Marketing 4. Operations/Production 5. Other 6. Part-Time/Hourly
Indicate when their employment will start according to the Operations and Management and Organization sections of your business plan.
Worksheet #6: Marketing Budget Enter the cost for the marketing vehicles you plan to use (Week 4 Discussion and Weeks 5 and 8 Assignments).
Worksheet #7: Professional Services Enter payments to accountants, consultants, attorneys, industry specialists as needed. Worksheet #8 Capital Investments Worksheet: Enter equity capital investments, loans, et cetera.
Enter projections of other funds you intend to raise.
Worksheet #9: Income Statement Enter the cost of your expenses; see Business Expenses in the table that appears underthe Specific Business Details section of these guidelines.
Worksheet #10: Cash Flow Statement Pay off taxes. Worksheet 11: Balance Sheet This will automatically populate from the other completed worksheets.
4
- COMPANY OF YOUR CHOICE* GUIDELINES
- Key Business Plan Parameters
- Specific Business Details
- Guide to Complete the Business Financials Excel Template