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Starting A Consulting Business
Business Plan Outline


THERE ARE THREE ESSENTIAL INTERACTIVE COMPONENTS
OF AN EFFECTIVE BUSINESS PLAN:

ORGANIZATION
MARKETING
FINANCIAL


I. ORGANIZATIONAL

    A. CONCEPT OF THE BUSINESS.

      1. What will it be? (legal format, specific nature of the business).

      2. What will it do?

      3. Where will it be? Location?

      4. Market group. Who will you do business with?

      5. Mission statement. What is company goal, attitude?

      6. Management/personnel. Who? Why? Qualifications?

    B. PURPOSE OF THE BUSINESS.

      1. Consumer need, or the ability to create one.

      2. Personal ambitions and desires.
        a. What do you desire to create?
        b. What do you expect to do?
        c. What are your anticipated rewards?
        d. How will you evaluate success/failure?

    C. PERSONAL BACKGROUND.

      1. Positive aspects.
        a. How will you utilize your personal skills?
        b. How will you utilize your professional skills?

      2. Negative aspects.
        a. How will you compensate for your lack of personal skills?
        b. How will you compensate for your lack of professional skills?

    D. MANAGEMENT/PERSONNEL

      1. Management is responsible for:
        a. All activities of the business.
        b. Development of all plans.
        c. Supervision of all personnel.

      2. Describe the role of management.

      3. Describe the role of personnel.

      4. Describe methods of operation.

      5. Describe methods of evaluation.
**It is important to note that many small business owners are dismayed by the extent and amount of responsibilities they must deal with pertaining to their business which were not initially anticipated. It is essential to develop an awareness of the full-range of responsibilities and limitations of management during the planning stages!

    E. REGULATIONS (FEDERAL, STATE, LOCAL).

      1. Licenses, permits.

      2. Health, safety, hazardous materials.

      3. Zoning.

      4. Workmen's compensation.

      5. Employment security, social security, temporary disability.

      6. Sales permits.

      7. Federal and State employment taxes.

      8. Federal and State income taxes.

    F. RISKS

      1. Insurance.
        a. Property.
        b. Fire, theft, vandalism.
        c. Liability: product, professional.
        d. Health.
        e. Life.

      2. Assurance.
        a. Disability.
        b. Health.
        c. Life.
        d. Income.

      3. Business Owner.
        a. Personal equity.
        b. Business equity.

      4. Business.
        a. Inaccurate financial projections.
        b. Inaccurate market projections.
        c. Management miscalculations.
        d. Customer miscalculations.
        e. Industry/economic trends.

II. MARKETING

    A. TYPE OF PRODUCT/SERVICE

      1. Where will you obtain it?

      2. How much will it cost?

      3. How available is it?

      4. How much can you sell it for?

      5. How much must you sell it for?

      6. How many can you sell?

      7. How will you sell it?

    B. CUSTOMERS

      1. Identify market group.

      2. Identify target market group.

      3. Identify where target market group is.

      4. Define target market group's need for product/service.

      5. Define target market group's current fulfillment of need.

      6. Define development of customer need.
        a. Will you develop need? If so, how?

      7. Define existing credit/payment terms, policies.

    C. MARKETING TO CUSTOMER

      1. Develop marketing tactics and strategies.
        a. Direct marketing/advertising.
        b. Indirect marketing/advertising.
        c. Sales program/staff.

      2. Develop marketing/advertising plans.
        a. Will they effectively "reach" customer?
        b. Define related expenses.
        c. Define related time schedules.

      3. Create goals/projections for marketing/advertising plans.

      4. Develop methods of evaluation, review, analysis.

      5. Develop a budget!

    D. COMPETITION

      1. Identify competition.
        a. Location.
        b. Product/service.
        c. Customer base, market share.
        d. Marketing strategies.
        e. Management, personnel.

      2. Develop competitive strategies.
        a. How will you compete with competitor's product/service?
        b. How will you compete with competitor's price?
        c. How will you compete with competitor's strategic plan?
        d. Why will customer do business with you?

    E. LOCATION OF BUSINESS

      1. Is business strategically located in proximity to target group?
        a. If so, describe and explain.
        b. If not, describe and explain.

      2. Is business located in an environment conducive to the activities of the business?
        a. If so, describe and explain.
        b. If not, describe and explain.

      3. Is business location affordable based on market demand and financial projections?
        a. If so, describe and explain.
        b. If not, describe and explain.

      4. Does business location allow for any anticipated expansion?

III. FINANCIAL
    A. SOURCES AND APPLICATION OF FUNDING

      1. Start-up capital.
        a. Equipment.
        b. Inventory.
        c. Supplies.
        d. Receivables/payables.
        e. Advertising.
        f. Payroll.
        g. Initial deposits (lease, utilities, etc.).

      2. Sources of funding.
        a. Loan to business.
          1. Terms, rates, ability to service debt.
        b. Equity investments.
        c. Collateral security

    B. FINANCIAL STATEMENTS

      1. Pro-forma cash flow statements.
        a. Year 1 detail by month.
        b. Year 2 detail by quarter.
        c. Provide explanatory notes.

      2. Pro-forma Income statements.
        a. Year 1 detail by month.
        b. Year 2 detail by quarter.
        c. Provide explanatory notes.

      3. Balance sheets

      4. Break even analysis.

      5. Deviation analysis.

      6. Historical financial data (for existing businesses)
        a. Income statements (past three years).
        b. Balance sheets (past three years).
        c. tax returns (past three years).

      7. Personal financial statements of owners.

IV. SUPPORTING DOCUMENTS
    A. PERSONAL

      1. Resumes.

      2. Financial statements.

      3. Financial requirements (cost of living budget).

      4. Credit status (reports).

      5. Letters of recommendation.

      6. Additional documents of relevance to the business plan.

    B. BUSINESS

      1. Letters of intent.

      2. Leases, sales agreements.

      3. Licenses, permits.

      4. Building, zoning, taxation compliance.

      5. Job descriptions.

      6. Relevant legal documents
        a. Partnership agreement.
        b. Corporation documents.

      7. Vendor agreements.

      8. Product/service documentation

      9. Additional financial documents

      10. Additional documents of relevance to the plan.

Additional information on business plan development can be found on the internet at the following sites:
http://www.Business-Plan.com
Numerous business development
manuals and software
"Out of Your Mind ... and Into the Marketplace"
http://www.sba.gov US Small Business Administration

or, by referencing the links at the Business Planning & Development category at the Helpful Home Page Links.


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Deion Associates & Strategies, Inc.
Mark S.Deion

15 Sackett Street
Warwick, RI 02886-2333 USA
Tel: (401) 732-0457 • Fax: (401) 732-8767
E-mail: marks@deionassociates.com
URL: http://www.deionassociates.com

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