Free Business Plan
Get Down to Business Planning

The following free business plan, is provided for your immediate review.

At leadership-tool.com, we deliver what we advertise! We provide you with a REAL free business plan. We break the plan down, step-by-step, detailing for you the PURPOSE of each section, and then WE SHOW YOU what an actual finished business plan looks like.

The layout of a business plan can differ from plan to plan. However, this free business plan does include ALL of the critical elements that you need when writing your business plan, regardless of the business's stage of growth.

It is important to note that as your business grows, the more complex your business planning tends to be. More information is available about YOUR business. Therefore, more information is included in a business plan for an establish business.

It’s important we don’t lose sight of WHY business planning is so important:

With the above quote in mind, you should realize that completing a business plan takes time, effort and commitment. Afterall, anything that is truly IMPORTANT, usually requires a considerable amount of time and effort, but ultimately all that time and energy is worth the outcome, right?

So, let’s walk through a REAL business plan.

Our free business plan is divided into easy-to-follow sections. Each section includes important questions that must be answered, along with our real- live business plan example.

When writing YOUR business plan, be sure to include the answers to ALL these important questions, along with any other information you think is important.

Section One: Executive Summary

Section Two: The Business

1. Description of Business
2. Product/Service
3. Marketing Information
4. Location of Business
5. Competition
6. Management
7. Application and Expected Effect of Loan

Section Three: Financial Data

Section Four: Supporting Documents

Section One: Executive Summary

The purpose of the executive summary is to grab the interest of your reader. The quality of your executive summary will either convince the reader (who is usually a lender) to keep reading, or if written poorly it will convince them to seek opportunity elsewhere.

The executive summary quickly speaks to each section logically and coherently. This information will leave the reader with a concise, convincing statement that the project and business plan is feasible.

NOTE: The executive summary always discusses the proposed financing structure including the type of financing, collateral, term, rate and the repayment source. ALL BUSINESS PLANNING ACTIVITIES MUST KEEP IN MIND THE BOTTOM LINE!

Finestkind Seafoods, Inc. is a fish market serving retail and wholesale markets in and around Anytown, ME. Mike Gosling and Mike Swan, the owners, are seeking $120,000 to purchase the 123 Main Street property, perform necessary renovations and improvements to the property, maintain a cash reserve and provide adequate working capital for anticipated expansion of the business.

The $120,000 request is sufficient to finance a planned expansion phase and ensure the business can continue to operate profitably.

Careful analysis of the potential market shows an unfilled demand for exceptionally fresh seafood. Mr. Gosling's local reputation will help secure a sizable portion of the wholesale market, while Mr. Swan's managerial experience assures that the entire operation will be carefully controlled.

Mr. Gosling's current studies at University of Maine will provide even more control over the projected growth of Finestkind and complement the advice of a thoughtfully selected advisory board.

The funds sought will result in a greater increase in fixed assets than is shown, as Mr. Gosling will be performing additional renovation and improvements himself. The additional reserve and working capital will enable Finestkind to substantially increase their sales while maintaining profitability.

Section Two: The Business

1. Description of Business

• Business for: proprietorship, partnership, or corporation?
• Type of business: merchandising, manufacturing, or service?
• What is the product and/or service?
• Is it a new business? A takeover? An expansion?
• Why will your business be profitable?
• When is your business open?
• Is it a seasonal business?
• What have you learned about your kind of business from outside sources (trade suppliers, bankers, other business owners, publications)?

Finestkind Seafoods, Inc. is a fish market specializing in selling extremely fresh (no more than one day from the boat) seafood to local retail and wholesale customers. At present, about 60 percent of sales are retail.

Finestkind plans to concentrate more heavily on the wholesale trade (restaurants and grocery chains) in the future. Although in the wholesale trade, profits are higher due to lower personnel costs and faster inventory turnover.

Finestkind began business in September 1985. The store is open seven days a week from 10:00 a.m. to 8:30 p.m. (6:00 p.m. in the winter) for retail business and from 6:30 a.m. to 8:30 p.m. year-round for wholesale.

Retail demand is seasonal and fluctuates according to weather (the store is located on a tourist route). The wholesale demand is constant and increasing. We feel that the latter can be improved by more direct selling efforts. Our customers agree (see letters from Nightlife Clambake and Grandiose Supersets in the Appendix). The quality of our seafood is exceptional. Since Mr. Swan is a former fisherman with many personal friends in the fishing industry, we do not foresee any issues with maintaining food relations with our suppliers.

We have a policy of paying premium prices in cash at dockside for the best fresh seafood.

2. Product / Service

• What are you selling?
• What benefits are you selling?
• Which products are rising stars? Which are steady cash cows? Which are in decline or investments in ego?
• What is different about your goods and services?

Finestkind provides premium quality seafood to both wholesale and retail customers. Our goal is to provide the freshest seafood at competitive prices to customers within 25 miles of Anytown. We make deliveries on time and at the agreed upon price.

3. The Market

• Who buys from you? Define your target markets.
• Is your market share growing, steady, or declining?
• Have you segmented your markets? How?
• Are your markets large enough for expansion?
• How will you attract, hold and increase your market share?
• Are you planning to enter or leave any markets?
• How do you price your products?

Finestkind will continue to provide premium quality seafood to both wholesale and retail customers. As we grow we plan to improve the balance from 60 percent retail/40 percent wholesale to 40 percent retail/60 percent wholesale.

Retail business will grow over the next few years, but the greatest growth will be in wholesale accounts. Our goal is to provide the freshest seafood at competitive prices to customers within 25 miles of Anytown.

Our market has a total population of over 100,000 people and potential of over 300 commercial wholesale accounts. (see excerpt from Census Report in the Appendix)

Customers will be attracted by:

• Direct approach to restaurants, groceries and other wholesale prospects
• A local radio and newspaper advertising campaign
• Word-of mouth advertising from our current customer base
• Our location on a heavily-traveled tourist route

4. Competition

• Who are your nearest direct competitors?
• Who are your indirect competitors?

Kingfisher – is a clean, three-man operation in Rye specializing in cheaper fish. Kingfisher has trouble with their suppliers because they aren't willing to pay top dockside prices in cash -- the owner likes to haggle over price. The operation is well financed and managed, has modern equipment, and sells directly to homes from a fleet of three trucks (very convenient).

They have a wholesale business that they want to expand. Their sales are apparently growing because they have been serving the same route for five years and have an excellent reputation. Rumor has it that Kingfisher is interested in buying Fred's Fish or adding another delivery truck or two.

Job's Seafoods - currently rebuilding because of a disastrous fire but will be our most serious competitor when their new store opens. Job's has been in business for twenty-five years in Anytown, and has a good location on a scenic bridge two miles from Finestkind. Job's has good relations with suppliers and serves most of the supermarkets.

Currently, Job’s has no retail business but plan to open a retail store in their new building. However, the owner needs an eye operation and may be willing to part with some of his wholesale business since he is getting on in years.

Indirect competition is from major processors in Portland (45 miles east) and Boston (60 miles south). Since we fall between their primary market areas we can purchase from both on a consignment basis.

5. Location of Business

• Where are you (or should you be) located?
• Why is it a desirable area? A desirable building?
• What kind of space do you need?
• Are any demographic or other market shifts going on?

Finestkind is currently leasing a one-story, wood-frame building with cement floor (2,000 square feet) at 123 Main Street, Anytown, ME for $550/month with an option (in writing) to buy for $105,000. The area is zoned for commercial use. Main Street is part of US Route 1, a heavily traveled tourist route with most nearby businesses catering to the tourist trade.

Finestkind has performed major leasehold improvements, such as installing rough- sawed pine board walls and a walk-in freezer. The building is divided into:

1. a sales/counter area (1,200 square feet)
2. a cutting area (100 square feet)
3. a multi- purpose area, including toilet with separate entry, storage space, and room for some expansion of the freezer and processing areas (700 square feet in all), (see diagram in the appendix)

6. Management

• How does your background/business experience help you in this business? For your own use, what are your weaknesses and how will you compensate for them? What related work experience do you have?
• Who is on the management team?
• What are their strengths and weaknesses?
• What are their duties?
• Are these duties clearly defined? How?
• What additional resources are available to your business?

Mr. Swan was born in Wisconsin, attended schools in Utah, Alaska and Florida, and served four years in the Marines (rank upon separation: E-3). He test-drove motorcycles for a year, then served as parts manager for Wheely Cycles, Inc. before joining the Fatback Fish Division of Tasty Foods as a packer in March 1983 in their East Machas, Maine, plant. In June 1985 he resigned as line foreman of the Frozen Food Filleting Department to join Mr. Gosling in Finestkind. He is unmarried and lives in Anytown.

Both men are healthy and energetic. They believe their talents and skills complement each other and will help them make Finestkind a successful enterprise.

In particular, Mr. Swan knows all of the fishermen while Mr. Gosling is well- known in the community. Since Mr. Swan has had experience in cost control and line management, he will be responsible for the store and inventory control. Mr. Gosling will be primarily responsible for developing the wholesale business. They will set policies together. Personnel decisions will be made jointly.

Salaries will be $950/month for the first year to enable the business to payoff startup costs. Mr. Gosling's wife earns enough to support their family. Mr. Swan's personal expenditures are low since he shares a house with five roommates. In the second year they will earn $1200/month, in the third year $1500/month with any profits returned to the business.

In order to strengthen their core leadership skills, they have enlisted the services of Smith & Farly (CPA's), Mason Petrocelli (Attorney), and Halsey Johnson, (retired banker) who will be on their advisory board. Other advisory board members are Andrew O’Bangfo (business consultant) and the University of Maine's Venture Incubator Division. Each will provide ongoing management reviews to ensure the business stays on plan and achieves our objectives.

7. Personnel

• What are your current personnel needs?
• What skills will your employees need in the near future? ln five years?
• What are your plans for hiring and training personnel?

Finestkind will hire one part-time salesperson within six months to sell seafoods over the counter to retail customers. This salesperson will be paid $4.00/hour for weekend work with no fringe benefits. Overtime is not expected.

We will also employ, on an as-needed basis, one cutter at $6.75/hour to help process seafood for the wholesale trade. The counter help will be needed for 10 weeks during the summer and the cutter will be needed for about 20 hours/week for 16 weeks.

The same needs are expected for our second summer as well. For the third year, we plan on two counter helpers plus a full-time summer cutter. In the second year we'll add one full-time employee at $850/month, with a raise to $950/month in the third year.

No further employees are needed unless we exceed our sales projections.

8. Loan or Investment Application

• How will the loan (investment) make your business more profitable?
• Should you buy or lease (equipment, your place of business, and so on)?
• Do you need this money? Establish a procedure for making borrowing decisions, and plan your borrowing.

Finestkind’s $120,000 loan/investment will be utilized as follows:

Purchase of Main Street Property	$ 75,000
Equipment:
Used Ford pickup with insulated body	3,885
Dayton compressor (used, serial #45-cah-990)	365
Sharp slicer (used, Speedy model)	400
Renovations (see contractor's letter in appendix)	12,500
Working capital	12,000
Inventory	1,500
Cash reserve	14,350
Total:	$120,000

Finestkind will purchase the 123 Main Street property, according to the terms of the original lease/purchase agreement. An independent appraiser has calculated the value of the property, including leasehold improvements already completed by Finestkind, at $135,000 (see appraisal in Appendix).

The monthly payment for a 5-year mortgage ($75,000 at 11.5 percent interest) will be $875/month, a net increase of $325/month over the current rent. (see the Financial Data section for the effect on the business)

The truck will be used to deliver merchandise to our wholesale customers, retard spoilage, and maintain the quality of the seafood.

The compressor will replace the one now used for the freezer, and will lower electrical costs and provide a measure of insurance against loss of refrigeration. (We'll keep the old compressor as a spare.)

The slicer will save four man-hours of work daily. The time saved will be used for soliciting more business and processing a greater volume of whole fish. With owning the slicer, relatively untrained help can filet flounder with minimal waste.

The renovations include:

• a deep water well required by the state
• a toilet and wash sink separate from the work area
• replacement of an old heating system, which will reduce fuel expenses

Greater working capital will enable Finestkind to meet current expenses, offset negative seasonal cash flow (as shown in the Cash Flow Projection in the Financial Data section), and insure the continued growth of the business.

Increased inventory will allow Finestkind to take advantage of bulk rates on certain fresh frozen packaged goods such as red snapper or South American spiny lobster.

The bank will hold the reserve as a line of credit. Funds will be used to take advantage of special opportunities or to meet unexpected emergencies.

The three major financial documents for any business include a balance sheet, income statement and a statement of cash flow or cash flow projection.

The statement of cash flow is the most important for your business plan since it will be the document which is looked at the closest by a lender.

If you are not already familiar with the term CASH FLOW, it represents the actual movement of cash into and out of your business.

A cash flow projection is a forecast of the cash (checks or money orders) a business anticipates receiving and disbursing over the course of a given period of time - usually monthly. The statement of cash flow is an essential tool for anticipating the cash requirements of your business.

For a new or growing business, a well-developed cash flow projection can make the difference between success and failure. For an ongoing business, it can make the difference between growth and stagnation.

A Cash Flow Projection will state:

• how much cash your business needs
• when cash will be needed
• whether you should look for equity, debt, operating profits, or sale of fixed assets
• where the cash will come from

Include any documents that lend support to statements you have made in the body of the business plan. Items included here will vary according to the needs and stages of development of your particular business.

The following list suggests supporting documentation that might be included:

• Resumes: very important
• Credit information
• Quotes or estimates
• Letters of Intent from prospective customers
• Letters of Support from credible people who know you
• Leases or Buy/Sell Agreements
• Legal Documents relevant to the business
• Census/Demographic data

Now that you have completed your review of our free business plan, we encourage you to begin gathering all the information necessary to answer all of the important questions in each section. Your work in gathering all essential information PRIOR to sitting down to write your plan will save you tons of time.

Conclusion

Always remember - YOU CAN DO THIS! Don't ever let anyone convince you otherwise. Having just gained a birds-eye view of the business planning process from our free business plan, YOU ARE READY TO PROCEED!

Creating a small business plan involves the same process you would go through to achieve any important goal in life. The knowledge you have gained via our free business plan, start now by putting pen to paper and actually stepping through the business planning process. You will be able to take vague, undefined ideas and turn them into something POWERFUL and FOCUSED.

Now that you have absorbed the information provided in our free business plan, you will be able to identify any trouble spots or obstacles that may not have been visible before you started your small business plan.

Let's go! Print off our free business plan, and get busy. YOU CAN DO THIS!

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