BUSINESS PLAN

BUSINESS PLANBusiness PlanBusiness plan is a strategy to achieve the objectives of the proprietors of business.A business plan prepared for a bank or investors should include the evidence of market potential along with projected sales of the business.It is a written document which sets out all the important facts about the business its history, current position, objectives & business activities to be undertaken.Process of creating a business planFollowing are the steps involved in creating a business plan which is widely followed:Executive Summary: this is the most concise form of business plan which covers all the key points.

Any outsider will first review the executive summary to understand whether the business plan has potential.

Business PlanExecutive Summary should include: A brief description of the business concept & proposed business modelAn overview of market potentialSummary of managerial skillsOverview of financial forecasts & expected returns for businessPurpose of the plan (eg. attract investment capital, management tool)Business PlanA cover sheet is to be attached before the summary that includes the name, address, telephone number, website & other general information about business

2. Business Overview: this is a summary of the current state of venture. It describes who will be the principal owners or whether it will be a partnership firm. Business PlanBusiness overview should contain:

Business goals & objectivesProducts or services offeredHow the business will profit in the near term & long termStrategy that will be used to be successful in the marketWhat is your competitive advantage?Business Plan3.Product/Service Description: This involves a description of the product/service that the organization will sell & the benefits that it will provide to the customers.This should include the features that the company is going to offer which differentiates it from its competitors.The description should cover product features, benefits, pricing, current status of the product/service development. Business Plan4. Market Analysis: This section reflects the entrepreneurs knowledge of his/her industry & presents highlights & analysis of the market research.It should outline who is going to be the potential buyer of the product/service.This section should include Market definition ( who will buy & why?)Market segmentationSize of the marketBusiness PlanIdentification of target marketCustomer buying practices (description)Description of market trends & growth potential5. Marketing Plan: This section includes a review of industry conditions & a plan for promoting & selling the product or serviceIt should contain marketing objectives, mode of communication(promotion, advertising, PR, printed material etc)

Business PlanIt should also include the channel of distribution to be used (internal sales force, distributors, retailers)And the marketing budget that has been decided for the above activities6. Operations Plan: this deals specifically with the internal organizational structure, operations & the equipments that will be required to operate the ventureIt describes how the business will be owned & managed & what is the personnel requirement

Business Plan7. Management Plan: this section emphasizes on the managements talent & skills & how they are different from the competitors. It should include a detailed schematic diagram of the organization structure, strengths & weaknesses of the management team & strategies for recruitment & selectionBusiness Plan8. Financial Plan: This section states the sources of fund for the project & how it will be used. It should include: How much capital is required to start or expand the business?What will be the break even point?Projected statements for the first three years ( Profit & Loss, Balance Sheet)Explanation of assumptions used in developing financial projections.Business Plan9. Appendices or Exhibits: additional details or confidential information is presented here. This section is bound separately and should provide information on :Resumes of key managersPictures of productPatentsContracts (leases, agreements if any, insurance taken etc)SAMPLE BUSINESS PLANDocument Shredding Business PlanSecurity First ShreddingExecutive SummaryTheft, vandalism, and industrial espionage are becoming ever increasing security problems. There are too many horror stories resulting from confidential information getting into the wrong hands. Today's information explosion can be devastating to a business. With the increased use of office copiers and computers, staggering amounts of sensitive information is being generated and carelessly discarded.

Executive Summary (Cont.)Security First Shredding is a professional paper shredding company, providing the most secure, efficient, simple and cost effective plan available for destroyinga company's confidential information. Security First Shredding provides complete on-site and off-site document destruction services. Security First Shredding will service companies in the Madison area. The company has experience in product destruction as well as the shredding of microfilm, microfiche, credit cards, computer tapes and other forms of media storage.

Executive Summary (Cont.)A certificate of destruction will be provided with each invoice. We also offer recycling programs for non-confidential documents.Janet Wilson, co-owner of Security First Shredding, has ten years of experience in the field of document destruction. She has worked for both Shredd-All and Capital Shredding in New York, before moving to the Madison area last year.Security First Shredding will have two state-of-the-art disposal trucks that can shred documents at the business site or transport it to a recycling center for disposal.

Highlights

MISSION1.1 Mission

The mission of Security First Shredding is to provide a cost-effective document disposal service that protects our customers demand for security.

OBJECTIVES1.2 ObjectivesAchieve sales goal during first year of operation.Achieve a customer base of 100 companies.Increase sales by 15% during the second year of operation.

COMPANY SUMMARYSecurity First Shredding is a professional paper shredding company, providing the most secure, efficient, simple and cost effective plan available for destroyinga company's confidential information. Security First Shredding provides complete on-site and off-site document destruction services. The company will be organized as a limited partnership.Security First Shredding has an 8,000 square foot facility located in the Westside Industrial Park. The park anchors the industrial section of the city and is within easy accessof 80% of the potential customers.

START UP SUMMARYThe start-up expenses for the Security First Shredding is focused primarily ondisposal equipment, disposal bins, and disposal trucks. Janet Wilson and the silent partner will each make substantial investments in the company. In addition,Wilson will secure along-term loan business loan.

Start-up FundingStart-up Expenses to Fund$249,600Start-up Assets to Fund$80,400Total Funding Required$330,000AssetsNon-cash Assets from Start-up$0Cash Requirements from Start-up$80,400Additional Cash Raised$0Cash Balance on Starting Date$80,400Total Assets$80,400Liabilities and CapitalLiabilitiesCurrent Borrowing$0Long-term Liabilities$100,000Accounts Payable (Outstanding Bills)$0Other Current Liabilities (interest-free)$0Total Liabilities$100,000CapitalPlanned InvestmentJanet Wilson$80,000Silent Partner$150,000Additional Investment Requirement$0Total Planned Investment$230,000Loss at Start-up (Start-up Expenses)($249,600)Total Capital($19,600)Total Capital and Liabilities$80,400Total Funding$330,000START UP REQUIREMENTSStart-up ExpensesLegal $2,000Stationery etc.$600Brochures$4,000Insurance$1,000Rent$2,000Disposal Trucks$110,000Disposal Bins$50,000Disposal Equipment$80,000Total Start-up Expenses$249,600Start-up AssetsCash Required$80,400Other Current Assets$0Long-term Assets$0Total Assets$80,400Total Requirements$330,000

Company OwnershipSecurity First Shreddingis owned by Janet Wilson and a silent partner.

ServicesSecurity First Shredding offers the following services:SecurityOn-site document destruction service is the safest, most secure, and convenient means of disposing of your sensitive documents. Our bonded uniformed employees will take a customer's classified documents from the security bins that we provide for the office directly to the mobile shredding unit wherethe materials will be destroyed.

EfficiencyThe high-speed shredders mounted on our trucks are 40 times faster than most office shredders, reducinga customer's cost of shredding by over 25%.

ServicesOn-site destruction servicesSecurity First Shredding will provide security bins to be placed throughout the office area. These bins have a built in lock to ensure documents cannot be removed without a key. The material will be destroyed on-site and the shredded paper will then be taken to our facility where it will be recycled.Off-site destruction servicesSecurity First Shredding also offers off-site document destruction. We will still supply the customer with security bins but the materials will be brought back to our facility to be shredded. In addition to the security consoles for the office, we offer 65-gallon schafer containers. These schaefer containers are used for high volume areas. Customers with large volumes of paper find this to be the most economical way tohandle classified materials.

Market Analysis SummaryTheft, vandalism, and industrial espionage are becoming ever increasing security problems.

There are too many horror stories resulting from confidential information getting into the wrong hands. Today's information explosion can be devastating to a business. With the increased use of office copiers and computers, staggering amounts of sensitive information is being generated and carelessly discarded.

Outdated or inactive company files can also become damaging once they have reached their legal limit of retention. Shredding this information protects a company against potential lawsuits.

The supreme court has ruled that information inthe trash is "fair game" to anyone. Privacy laws make any company vulnerable to law suits when personal records are disclosed to outsiders--even by accident.

Market Analysis SummaryTheft, vandalism, and industrial espionage are becoming ever increasing security problems.

There are too many horror stories resulting from confidential information getting into the wrong hands. Today's information explosion can be devastating to a business. With the increased use of office copiers and computers, staggering amounts of sensitive information is being generated and carelessly discarded.

Outdated or inactive company files can also become damaging once they have reached their legal limit of retention. Shredding this information protects a company against potential lawsuits.

The supreme court has ruled that information inthe trash is "fair game" to anyone. Privacy laws make any company vulnerable to law suits when personal records are disclosed to outsiders--even by accident.