Creating a Business Plan (Part 2 of 2)
After writing a business summary, the basics, and making plans about revenue, capitalization, marketing and human resources, here are the remaining parts of a good business plan.
- Start-up budget: List where and how you will secure capital to accomplish this start-up and its desired growth.
- Project a 5-year Balance Sheet (Assets and Liabilities).
- Project a 5-year Profit and Loss Statement (Income and Expense).
- Income projections
- Cost of materials/supplies = cost of goods sold
- Sales overhead
- General and administrative costs = overhead
- Projected margin = profit margin
- How will you manage company earnings?
- Percentage to retained earnings
- Percentage to profit sharing
- Percentage to charitable contributions<
- Percentage to stockholder dividends
- Summarize the Financial Plan.
- Projected cost of sales
- Projected operations overhead
- Projected general and administrative overhead
- Projected margins
Personal Business Principles and Policies
- List your personal long-term goals for the business: What do you want to accomplish?
- Explain why you have chosen business over employment.
- List your goals in the following areas:
- Describe how you see business and your personal values interacting.
- Use of money.
- Use of time.
- Ethical issues.
- Paying taxes.
- Policy making.
- Use of company property.
- Confession and restitution.
- Business standards.
- Personal standards: What are the standards you would want others to hold you to?
- How will business affect the interconnection of your faith, family, employees, customers, and mentors?
- Things to avoid—things you should not do.
- Things you want to accomplish: What is important?
- Employee practices
- Steps to dismissal
- Aborting dismissal
- Management selection
- Debt-management principles
- Short-term debt
- Long-term debt
- Debt guidelines: List things you would borrow for and things you would not.
- Credit Principles
- Develop your business credit terms.
- How will you handle overdue and collection accounts
- Establish your policy for suing and being sued
Part 1 available from www.challengenews.org.
Courtesy Crown Financial Ministries www.crown.org.nz