1.
www.profitsplus.org
Presented by Tom Shay of
Profits Plus Solutions
727-464-2182
tomshay@profitsplus.org

2.
 “I didn’t plan on this
happening.”
 “You didn’t plan at all!”
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3.
 The business plan is more for
you than it is for a lender
 “I was a bank officer for 25
years and I don’t understand
all of this financial stuff.
Thanks for the help.”
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4.
 Cover page - Business name,
principals, address, info on
preparer
 Table of contents
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5.
 Introductory statements
 Vision statement – What your
business looks like in three to
five years
 Going somewhere – not just
getting the doors opened
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6.
 Mission statement – Telling
people how you want others
to see your business with
regard to customers,
products and services
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7.
 Statement of purpose – Who
you are, what you are going
to do, what you want with
regard to funding
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8.
 The statement of purpose
 Borrowing money? How
much; how long; why.
 “We are expecting to
borrow $xx for x
years
to ….”
 Details of
money come later
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9.
 The executive summary
 The ‘Cliff notes’ page of your
business plan.
My Business Plan
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10.
 In 30 seconds, this is the wrap
up of your business plan
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11.
 The company description
 Who, what, when, where, why
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12.
 Tell the story – sell the story
 Your theory, the
circumstances, seasonal,
politics, hours, partnership,
your niche, making money
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13.
 Start with the name and
begin to sell after that
 Explain the products and
services you sell and who you
sell to
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14.
 The marketing plan
 The image – what customers
think about the business.
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15.
 The brand – what you create
to develop the image.
 Marketing - how you project
your brand
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16.
 Competitive analysis – who
else is asking for that
customer’s discretionary
income?
 What is the competition good
at?
 What do
they do
poorly?
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17.
 Advertising – how are you
going to tell your story?
 Social media; cause
marketing
 Repeat, referral customers
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18.
 Management and personnel
 Your experience in the industry
 Your experience as an owner
 Your experience as a manager
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19.
 Who you gonna hire?
 Hiring for product/technical
skills or people skills?
 How are you going to teach
them?
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20.
 Business legality format – 6
options
 Sole proprietorship
 General partnership
 Limited partnership (lp, llp,
lllp)
 C corporation
 S corporation
 LLC
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21.
 Financial
 Capital structure
– 50/50?
 Loan or contributed
capital for growth?
 Buy out agreement?
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22.
Income Statement
Cash Sales 62,000
Cost of Goods Sold 39,370
Gross Profit 22,630
Gross Profit Percentage 36.5%
Operating Expenses:
Wages 12,000
Payroll Taxes 960
Property Taxes -
Rent 8,000
Telephone & Utilities 2,400
Repairs 150
Advertising 1,575
Accounting & Legal 200
Automobile 140
Bank Charges 210
Computer Operations 175
Dues & Subscriptions 300
Insurance - General & Workman's Compensation 800
Licenses & Taxes (not sales tax) 100
Office & Store Supplies 300
Outside Services 250
Travel 1,000
Total Operating Expenses 28,560
Operating Income (5,930)
Other Income and Expenses:
Miscellaneous Income -
Interest Income 265
Interest Expense -
Net Income Before Taxes (5,665)
Federal Income Tax -
Net Income (Loss) (5,665)
 Budget
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23.
 Cashflow plan
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24.
 Cashflow plan
A B C D E
1 EZ Cashflow (TM) Cash Basis
2
3 For Month Ending: 1/31 2/28 3/31
46 Cash Balance, Beginning of Month P/C 17,500 9,445 (14,627)
47
48 Net income (Loss) C (4,585) (9,400) 4,465
49
50 Add:
51 Cost of Goods Sold C 39,370 41,275 44,450
52
53 Less:
54 Inventory Purchases of Previous Month P 42,000 54,850 47,500
55 Freight In of Previous Month C 840 1,097 950
56 Principal Payments on Loans P - - -
57
58 Cash Balance, End of Month C 9,445 (14,627) (14,162)
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25.
 Personal financial statement
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26.
 Startup expenses –
 What are you going to spend
before you take in your first
dollar from a customer?
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27.
 Profit and loss projection –
 This is the cashflow plan
without the cashflow
component
 Profit is not cash
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28.
12/31
ASSETS
Current Assets:
Cash on hand $1,500.00
Checking Account $17,500.00
Savings Account $3,050.00
Accounts Receivable $14,215.87
Bank Card Receivable $1,340.34
Inventory $275,654.23
Total Current Assets: $313,260.44
Investments:
Cooperative Stock $23,125.46
Cooperative Notes $12,597.47
Total Investments: $35,722.93
Long Term Assets:
Property and Equipment:
Fixtures and Equipment $126,245.11
Building $325,465.88
Total Property and Equipment: $451,710.99
Accumulated Depreciation: $207,950.25
Total Net Property and Equipment: $117,515.63
Other Assets:
Utility Deposits $1,700.00
Total Other Assets: $1,700.00
Total Assets: $468,199.00
LIABILITIES AND EQUITY
Current Liabilities:
Accounts Payable $47,850.00
Building mortage - current $24,000.00
Note payable - current $45,000.00
Long Term Liabilites:
Building mortgage $62,000.00
Note payable $84,000.00
Total Liabilities: $262,850.00
Stockholders' Equity
Capital Stock $65,000.00
Retained Earnings $114,664.00
Current Income $25,685.00
Total Stockholders' Equity $205,349.00
Total Liabilities and Equity $468,199.00
 Balance sheet
projection
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29.
 Check the ratios – lenders are
looking for:
 Debt to equity
 Current ratio
 Return on investment
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30.
 Break even analysis –
 How much income does it
take each month to keep the
doors open?
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31.
 Advertising, marketing,
promotion
 With detail how much, where
and when are you spending
your money?
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32.
The credit belongs to those people who
are actually in the arena - who know the
great enthusiasms, the great devotions to
a worthy cause -
Who at best, know the triumph of high
achievement; And who, at worst, fail
while daring greatly …
So that their place shall never be with
those cold and timid souls who know
neither victory or
defeat.
- Theodore Roosevelt
The Essence of Achievement
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