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How To Write A Business Plan That Will Actually Get Read (With Example)

DoÌýyou have aÌýbusiness plan?

This essential documentÌýis not aÌý75-page document filled toÌýtheÌýbrim with industry ²ú³Ü³ú³ú·É´Ç°ù»å²õ— noÌýone isÌýever going toÌýwant toÌýread that. Instead, theÌýbest business plans are written forÌýactual human beings toÌýread.

They drive interest inÌýyour business while explaining how all its moving parts come together. They are concise andÌýimpactful while preserving professionality andÌýstraightforwardness. IfÌýyou don’t have one yet, now isÌýtheÌýtime.

How toÌýsell online
Tips from e-commerce experts forÌýsmall business owners andÌýaspiring entrepreneurs.
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Covering theÌýCover Letter

Your business plan opens with aÌýletter toÌýwhoever isÌýreading it. IfÌýyou have ever created aÌýresume, you should have aÌýgood idea ofÌýwhat aÌýcover letter is. InÌýmany ways, theÌýpurpose isÌýidentical here. You’re stating your intent andÌýwhat you plan onÌýbringing toÌýtheÌýtable. The goal here will beÌýtoÌýbreak down aÌýdetailed process toÌýwoo investors, business partners, orÌýeven initial employees. Most importantly, itÌýhas toÌýmake sense. IfÌýyou come off asÌýaÌýcrazy person, noÌýone isÌýgoing toÌýdoÌýbusiness with you andÌýyou’ll beÌýaÌýcautionary tale before you know it.

For reference, here isÌýwhat you will want toÌýmake sure you have inÌýthat cover letter:

1.ÌýAddress ofÌýrecipient
You’ll beÌýhanding this inÌýtoÌýspecific parties, soÌýmake sure this isÌýset forÌýmaximum impact.

2.Ìý¶Ù²¹³Ù±ð
Timestamp your stuff. Let people know how current theÌýinformation isÌýthat your business plan contains.

3.ÌýYour address
Keep those channels ofÌýcommunication open. Let people know where you are. This isÌýincredibly important.

4.Ìý³§²¹±ô³Ü³Ù²¹³Ù¾±´Ç²Ô
“Dear [name]” will personalize theÌýcover letter way more than you probably think itÌýwill. Make sure your intended recipient feels like you took theÌýtime toÌýmake this about them.

5.ÌýThe body
This isÌýwhere you are going toÌýhighlight exactly what isÌýgoing onÌýwith your business. ItÌýmight feel like blatantly obvious information, but stating itÌýhere will eliminate theÌýpotential forÌýincorrect assumptions. Explain that you are submitting your business plan inÌýaÌýsentence orÌýtwo, then add what theÌýreader can expect going forward inÌýyour plan.

6.Ìý°ä´Ç²Ô³¦±ô³Ü²õ¾±´Ç²Ô
Express anÌýearnest eagerness toÌýhear back from theÌýreader. Make sure that this isn’t only personalized, but that your most reliable, accurate contact information isÌýlisted here. This may beÌýtheÌýmost important part ofÌýtheÌýwhole letter.

7.Ìý°Õ³ó²¹²Ô°ì²õ
Thank theÌýreader forÌýtaking theÌýtime toÌýread even your cover letter. Time isÌýmoney, andÌýsomeone stopped what they are doing inÌýorder toÌýread your plan. ItÌýshows aÌýlevel ofÌýprofessionalism that will impress anyone that picks upÌýyour cover letter.

8.ÌýSign off
This isÌýyour final shot atÌýmaking anÌýimpact. Make sure itÌýisÌýmemorable without coming off asÌýcorny. IfÌýyou can tie your product inÌýhere inÌýsome way, you may create aÌýgreat association.

Setting UpÌýThe Title Page

The next itemÌýon theÌýdocket isÌýtoÌýcreate aÌýgreat title page. This isÌýanÌýopportunity toÌýset aÌýpositive first impression forÌýyour business itself. Make sure your title page encompasses theÌýprofessionalism ofÌýyour business. The goal here isÌýtoÌýprevent itÌýfrom looking like itÌýwas thrown together byÌýaÌýhigh school design student.

Make sure you have these important parts:

1.Your logo
Don’t have one? Get one.

2.ÌýBusiness name
Who are they working with?

3.ÌýFounder orÌýproprietor’s name (if itÌýapplies)

4.ÌýThe actual words: “business plan.”
Remember, make noÌýassumptions.

5.ÌýAnÌýimage ofÌýyour product, ifÌýitÌýapplies here.
Clip art isÌýnot allowed.

6.The date.
This isÌýyour timestamp.

After this, you need toÌýcreate aÌýtable ofÌýcontents, which isÌýgoing toÌýbeÌýaÌýlifesaver forÌýanyone that isÌýpicking upÌýthis business plan inÌýsearch ofÌýspecific information. The table ofÌýcontents will identify exact locations forÌýinformation that theÌýreader wants toÌýpinpoint, soÌýthat they can find their specific info. Some people may read theÌýwhole thing cover toÌýcover. but ifÌýthere’s someone looking toÌýfind something like theÌýbusiness outline, this isÌýwhere you show them that you have their needs covered. Make sure your sections are separated andÌýnumbered, orÌýthis isÌýall forÌýnothing.

Detailing Your Business

Now, you need toÌýhave anÌýexecutive summary. No, this isn’t about who isÌýrunning theÌýbusiness! This isÌýaÌýquick andÌýprecise snapshot ofÌýyour business plan asÌýaÌýwhole. You want toÌýfit inÌýasÌýmuch information asÌýyou can without bloating this piece.

You are clearly explaining theÌýconcept behind your business, your goals (both short andÌýlong-term), andÌýyour vision. This isÌýyour chance toÌýpaint aÌýpicture forÌýwhoever isÌýreading your business plan. It’s imperative that you also take theÌýtime toÌýexplain why your product orÌýservice isÌýaÌýstep above theÌýcompetition. Then identify your target market, your team that will make theÌýbusiness aÌýsuccess, andÌýtheÌýstrengths that they will bring toÌýtheÌýtable toÌýensure theÌýprowess ofÌýtheÌýbusiness. Sell theÌýreader onÌýyour team.

Once you’ve established theÌýexecutive summary, it’s time toÌýcreate theÌýcompany section. This part isÌýsuper-straightforward. It’s anÌýoverview ofÌýeverything anyone needs toÌýknow about your business. Much like theÌýback ofÌýaÌýbaseball card, you need toÌýmake sure that essential stats andÌýdata are expressed inÌýaÌýclear format, things like theÌýstructure ofÌýyour business andÌýwhen itÌýwas established. How are you making theÌýmost out ofÌýe-commerce andÌýwhat tools are you using? Clearly state your business’s mission plan andÌýits core values asÌýwell. Basically, tell theÌýstory ofÌýyour business here because you are about toÌýjump headlong into that business plan.

Outlining Your Business’s Future

You have to:

Phase IÌý(the next 6Ìýmonths)

Identify theÌýCompetition

Now that you’ve identified what you expect toÌýdoÌýhere, you need toÌýcompile aÌý“who’s who” list ofÌýyour competitors.ÌýListing out your major competition andÌýdetailing their strengths andÌýweaknesses will show you exactly what you need toÌýdoÌýtoÌýfind success, asÌýwell asÌýwhat you need toÌýavoid inÌýorder toÌýnot become another face inÌýtheÌýcrowd. That said, don’t beÌýafraid toÌýcopy good ideas while make them your own.

Identify they benefit from what they doÌýwell, orÌýtheÌýdrawbacks ofÌýcertain things that they doÌýpoorly. Once you have theÌýball rolling, identify what kinds ofÌýthreats doÌýthey pose toÌýyou. How will they react toÌýtheÌýthreat that you will beÌýcreating toÌýthem, andÌýhow are you prepared forÌýthis?

Marketing Plan

Then it’s time toÌýwrite theÌýmarketing plan. ToÌýdoÌýthis successfully, you have toÌýidentify your customers andÌýanyÌýuseful data that will make reaching them easier. Info like age, location, employment, ethnicity, interests, andÌýtheir industries ofÌýinterest will help set theÌýbackdrop here.

You need toÌýexplain what theÌýplan isÌýforÌýadvertising toÌýthem asÌýwell. AsÌýyou are inÌýe-commerce, you want toÌýmake theÌýmost out ofÌýsocial media andÌýblogging. What kinds ofÌýhashtags can you use that will appeal toÌýyour customers? What keywords will your ideal customers beÌýusing when they search forÌýproducts online, andÌýhow can you optimize traffic through blogs andÌýaffiliate marketing toÌýmake sure they reach you? Finally, outside ofÌýthis, how will you reach theÌýcustomers inÌýaÌýway that they will beÌýinterested inÌývisiting your online storefront? Email marketing isÌýnice, but what will you beÌýdoing differently toÌýmake sure they read your emails?

Operation Plan

After you’ve explained how your customers will know your name andÌýproduct, you will want toÌýbeÌýable toÌýshow how you will operate theÌýbusiness going forward byÌýusing key bullet points.

SuppliersÌý— IfÌýyou are selling aÌýphysical product, where are you getting itÌýfrom, orÌýhow are you getting theÌýmaterials toÌýcreate it?

FacilitiesÌý— Where are you keeping your inventory, andÌýhow doÌýyou have access toÌýit?

PersonnelÌý— Who will beÌýworking alongside you? How many people doÌýyou need andÌýwhat will they beÌýdoing?

EquipmentÌý— What sort ofÌýtools orÌýtech will improve your storefront? Are you hosting remotely orÌýon-site, andÌýhow can you handle traffic?

Shipping andÌýFulfillmentÌý— Create anÌýoutline ofÌýhow you are going toÌýbeÌýable toÌýtake orders andÌýmake sure that purchases are finding their way toÌýtheÌýcustomers. Are you utilizing anyÌýthird party services here orÌýwill you have partners toÌýhandle this?

InventoryÌý— How much product will you beÌýkeeping onÌýhand overall? IfÌýyou utilize third-party retailers asÌýwell, how will you make sure they are stocked too? How will you keep track ofÌýall your product?

Customer SupportÌý— How are you going toÌýsupport requests andÌýhandle customers’ needs beyond simply supplying your product andÌýtaking theÌýcustomer’s money?

´¡Ìýsub-point toÌýcustomer support isÌýknowing what kind orÌýguarantee orÌýreturn policy you will offer forÌýtheÌýcustomer. What you want toÌýdoÌýisÌýclearly state what sort orÌýreturn window theÌýcustomer will have forÌýtheir product. Will they need toÌýpay forÌýshipping orÌýwill you offer that asÌýaÌýconvenience? How long will you guarantee your product? What will beÌýtheÌýresolution ifÌýtheÌýcustomer isn’t happy with itÌýduring that time frame? Detail all ofÌýthat asÌýwell because there isÌýnothing more important than turning aÌýdissatisfied customer into aÌýsatisfied one again.

Financial Plan

The final piece ofÌýtheÌýbusiness plan puzzle isÌýtheÌýFinancial Plan. WeÌýare going toÌýspeak about itÌýinÌýdetail inÌýaÌýpost toÌýcome. Get ready toÌýlearn about terms like theÌýPro Forma Income Statement, theÌýPro Forma Cash Flow, andÌýtheÌýProjected Balance Sheet. But you certainly have enough information here toÌýget started forÌýnow.

SoÌýgoÌýout there andÌýmake usÌýproud!

Business Plan Example

Below isÌýaÌýsample ofÌýaÌýcoffee shop business plan forÌýaÌýfictional e-commerce shop that we’re calling Green Tree Coffee.

Importantly, all ofÌýtheÌýfacts andÌýfigures itÌýcontains are invented, but its formatting andÌýflow are valid. Use itÌýasÌýanÌýexample toÌýinspire you asÌýyou create your own business plan!

Begin business plan:

Executive Summary

Based inÌýAsheville, North Carolina, Green Tree Coffee isÌýanÌýonline retailer ofÌýhigh-quality limited-run coffees from around theÌýworld. ItÌýisÌýfounded byÌýLawson McBride, aÌýbackpacker, world traveler, andÌýcoffee lover who spent theÌýpast five years funding her travel byÌýworking onÌýsmall coffee farms inÌýexotic locales onÌýsix ofÌýtheÌýseven continents. McBride isÌýpassionate about well-produced coffee that simply cannot beÌýbought inÌýanyÌýconventional grocery store, soÌýshe brings worldwide Internet attention toÌýher favorite coffee farms where she used toÌýwork, lest they otherwise goÌýunnoticed byÌýtheÌýcoffee-loving public.

The business currently operates entirely online, making its products available everywhere atÌýonce. Business projections have Green Tree Coffee onÌýtrack toÌýgenerate $35,000ÌýofÌýrevenue inÌýits first year, andÌýasÌýtheÌýbusiness grows, itÌýwill beÌýdoing $$350,000ÌýofÌýbusiness annually within three years. Upon meeting these projections, there will beÌýaÌýphysical Green Tree Coffee storefront open toÌýresidents andÌývisitors toÌýAsheville who want toÌýexperience theÌýsights andÌýsmells ofÌýthis coffee inÌýperson.

The business retains aÌýfocus onÌýenvironmentalism andÌýsustainability. Customers inÌýAsheville are invited toÌýbring their used coffee grounds toÌýaÌýdesignated drop-off point each week, where itÌýwill beÌýmade into fertilizer forÌýaÌýcommunity garden. Once theÌýphysical storefront isÌýupÌýandÌýrunning, customers can their grounds toÌýtheÌýstore atÌýanyÌýtime.

Research shows that coffee isÌýmore popular than it’s ever been. The average American drinks nine cups ofÌýcoffee aÌýweek. The average European drinks 11. The average South American? 13Ìýcups ofÌýcoffee each week. This isÌýwhy itÌýremains important forÌýGreen Tree Coffee toÌýfocus onÌýserving theÌýworld atÌýlarge.

The business primarily competes with Red Fern Coffee, aÌýsmall coffee distributor that works exclusively with American coffee farms. Green Tree’s value proposition andÌýkey differentiation comes from its worldwide focus andÌýattention toÌýsustainability inÌýits operations.

AtÌýtheÌýoutset, marketing will beÌýdone through social media. InÌýtheÌýcourse ofÌýher travels, founder andÌýCEO McBride has amassed aÌýlarge following onÌýTwitter andÌýInstagram. She will direct attention toÌýtheÌýGreen Tree Coffee website, make regular suggestions onÌýcoffee toÌýpurchase, andÌýshare stylish photographs pertaining toÌýtheÌýcoffee-lover lifestyle. Over time, marketing efforts will grow toÌýinclude paid search andÌýhyperlocal coffee-tasting events.

Product will beÌýsourced from theÌýcoffee farms that McBride has personal experience working with. She has access toÌýaÌýtrust andÌýunderstanding with these niche farms that larger businesses will simply never have; she isÌýaÌýformer employee. Product will beÌýshipped inÌýbulk via conventional delivery means toÌýaÌýwarehouse space, where itÌýisÌýthen repackaged with Green Tree branding, including aÌýshort text onÌýevery bag ofÌýcoffee beans about theÌýfarm andÌýcountry from which theÌýcoffee comes.

Green Tree isÌýnot presently seeking funding, but this may change inÌýtheÌýfuture. Right now theÌýcompany isÌýentirely bootstrapped off ofÌýMcBride’s savings, andÌýshe isÌýable toÌýpurchase product atÌýaÌýgreat discount due toÌýher personal connections inÌýtheÌýcoffee industry around theÌýworld.

Our Story

After several years ofÌýworking asÌýanÌýinvestment banker onÌýWall Street, securities trader Lawson McBride was ready forÌýdrastic change inÌýevery way. She sold most ofÌýher possessions andÌýlived out ofÌýaÌýbackpack forÌýfive years while traveling theÌýworld inÌýpursuit ofÌýtheÌýbest coffee she could find. After all, coffee was theÌýonly thing she consistently enjoyed inÌýher daily life. She wanted toÌýbring that same joy toÌýothers, but she knew that she had toÌýlearn everything about itÌýbefore she could doÌýso. After working aÌýseries ofÌýmanual labor jobs onÌýcoffee farms around theÌýworld, she leveraged her industry connections toÌýbuy theÌýfirst batch ofÌýGreen Tree Coffee inventory, andÌýisÌýnow set onÌýglamorizing coffee like never before.

Green Tree Coffee’s vision isÌýsimple: theÌýworld’s coffee, brought toÌýyour doorstep. Just asÌýAmazon can frictionlessly deliver daily household necessities like toilet paper andÌýcat litter, Green Tree seeks toÌýbring rare orÌýhard-to-find coffees toÌýtheir customers just asÌýeasily. The company only sells coffees that have been vetted inÌýperson byÌýMcBride’s work experience; she knows theÌýsmall coffee farms that treat its workers well andÌýpay aÌýfair wage byÌývirtue ofÌýbeing aÌýformer employee ofÌýthem herself.

Current Company Status

Green Tree Coffee currently operates asÌýanÌýLLC, but will soon seek toÌýincorporate asÌýits business grows. The company isÌýprivately held entirely byÌýMcBride, though she makes noÌýsecret ofÌýtheÌýfact that theÌýbusiness depends onÌýtheÌýhard work ofÌýcoffee farmers around theÌýworld. AsÌýaÌýreseller itself, theÌýbusiness sells directly toÌýconsumers through its online e-commerce shop andÌýavoids business with resellers orÌýwholesalers.

Green Tree Coffee Objectives

Green Tree isÌýintent onÌýswaying theÌýworld away from theÌýStarbucks lifestyle. Business isÌýprimarily domestic, within theÌýUnited States. Right now, theÌýfocus isÌýonÌýgrowing business toÌýbeÌýmore international. Below isÌýaÌýbusiness plan sample showing what isÌýnecessary over theÌýtime toÌýcome inÌýorder toÌýmeet such aÌýgoal.

Phase IÌý(next six months)

Phase IIÌý(next 12Ìýmonths)

The Team

Right now, Green Tree isÌýaÌýone-woman team. With aÌýWall Street resume that only speaks toÌýexperience ofÌýturning money into more money, Lawson McBride isÌýnow atÌýwork turning theÌýworld’s coffee into money. She isÌýfounder, CEO, andÌýprimary funder ofÌýall ofÌýits operations.

AsÌýtheÌýcompany grows, McBride will begin hiring hardworking coffee enthusiasts toÌýsee Green Tree Coffee soar toÌýnew international heights.

Market Size andÌýDevelopment

Coffee isÌýinternational, consumed inÌýone form orÌýanother almost everywhere that humans live. With this fact well-acknowledged, Green Tree seeks toÌýhave regular business inÌýevery inhabited continent onÌýtheÌýplanet. InÌýtheÌýUnited States alone, coffee isÌýaÌý$30Ìýbillion business. Internationally, itÌýisÌýmore than 10Ìýtimes that figure. Three out ofÌýevery four people onÌýtheÌýplanet consume coffee atÌýleast once aÌýweek. This isÌýaÌýpotential market size approaching two billion customers.

Developing theÌýbrand isÌýnot without its challenges. There are some deÌýfacto names inÌýtheÌýcoffee business that occupy more than their share ofÌýtheÌýspotlight, soÌýtheÌýdifficulty becomes one ofÌýraising Green Tree’s profile inÌýsuch aÌýway that theÌýcasual coffee drinker becomes aware ofÌýit. The company believes that theÌýbest way toÌýdoÌýthis isÌýtoÌýbegin leveraging attention inÌýtheÌýcoffee enthusiast world first, where attention will dribble downward andÌýinto theÌýmainstream over time.

Rather than see people leave theÌýhouse toÌýgoÌýtoÌýaÌýfancy coffee shop inÌýorder toÌýenjoy anÌýexquisite caffeine infusion, Green Tree Coffee knows that people would prefer toÌýstay home andÌýhave theÌýwell-done, well-grown coffee come toÌýthem.

Competition

Red Fern CoffeeÌý– based inÌýtheÌýUS, Red Fern has distinguished itself byÌýworking with unknown American coffee growers toÌýbring their product toÌýmore mainstream attention.

Blue Bottle CoffeeÌý– this high-end American coffee shop isÌýknown forÌýits delicious (if expensive) coffee made toÌýorder inÌýits retail stores.

Orange Lightning CoffeeÌý– working specifically with one coffee grower inÌýAustralia, this American reseller makes theÌýmost hyper-caffeinated coffee inÌýtheÌýworld available forÌýpurchase toÌýanyone with anÌýInternet connection andÌýaÌýshipping address.

Brand Differentiation andÌýValue Proposition

AsÌýdiscussed above, coffee isÌýaÌýubiquitous, worldwide phenomenon. None ofÌýtheÌýcompetition incorporates theÌýentire world into their businesses, andÌýasÌýsuch, they limit themselves. Simultaneously, none ofÌýthem are especially known forÌýtheir fair trade business operations orÌýcommitment toÌýsustainability. AsÌýGreen Tree works with coffee growers onÌýevery continent where people live, making their lesser-known coffees available toÌýabsolutely anyone else inÌýtheÌýworld, itÌýstands toÌýseverely outpace theÌýcompetition inÌýterms ofÌýrevenue andÌýworldwide brand recognition. The focus isÌýandÌýwill remain perpetually international, whether it’s theÌýsupplier orÌýtheÌýcustomer.

Target Market

Our customers are generally social media-savvy coffee lovers inÌýtheÌýdeveloped world. ToÌýsegment that demographic more specifically, itÌýlooks like this.

AgeÌý– 18-34
Coffee enthusiastsÌý– they goÌýout forÌýcoffee orÌýmake their own atÌýhome with some degree ofÌýregularity.
Social media-savvyÌý– they have andÌýare active onÌýtheir social media accounts, whether it’s Facebook, Tumblr, Instagram, Twitter, orÌýsimilar. These services came into being while this market grew up. They are comfortable with these services andÌýuse them regularly.
Some interest inÌýsustainability andÌýtheÌýenvironmentÌý– this market isÌýincreasingly aware ofÌýhuman impact onÌýtheÌýworld andÌýisÌýinterested inÌýtaking steps toÌýcounteract it, even ifÌýthey are small steps.
LocationÌý– anywhere andÌýeverywhere inÌýtheÌýdeveloped world. Green Tree Coffee isÌýanÌýInternet-only business forÌýtheÌýtime being. This requires that our customers have credit card numbers, shipping addresses, andÌýanÌýInternet connection.

Marketing Plan

Social mediaÌý– founder Lawson McBride amassed anÌýastounding social media following over theÌýcourse ofÌýher travels toÌýsmall coffee farms around theÌýworld. She isÌýaÌýknown coffee connoisseur andÌýtastemaker inÌýtheÌýcoffee world. Her tweets andÌýInstagram posts will unobtrusively direct people toÌýGreen Tree’s unique offerings onÌýits site, andÌýthey will beÌýretweeted andÌýre-shared, multiplying this marketing effort.

Paid searchÌý– plenty ofÌýpeople love coffee andÌýdon’t know where toÌýstart. The purchase ofÌýkey Google search terms will direct people toÌýtheÌýGreen Tree website, which isÌýlaid out inÌýsuch aÌýway asÌýtoÌýmake even aÌýcoffee novice confident inÌýhis orÌýher purchase decision.

SEOÌý– aÌýshort, daily blog post written byÌýtheÌýcompany founder will share her thoughts onÌýtheÌýcoffee world atÌýlarge, asÌýwell asÌýdiscuss theÌýgoings-on ofÌýtheÌýcompany asÌýshe works toÌýgrow it. ItÌýwill own keywords like “organic coffee,” “fair trade,” andÌýtheÌýlike.

PRÌý– asÌýtheÌýfoundation ofÌýtheÌýmarketing plan comes together over time, Green Tree Coffee will beÌýpitching media outlets ranging from business publications (to cover theÌýunique story behind theÌýstart ofÌýthis business) toÌýwell-known blogs inÌýtheÌýcoffee world, where theÌýfounder will share her thoughts onÌýwhat’s good andÌýbad when itÌýcomes toÌýaÌýcup ofÌýcoffee.

Daily Operations

AsÌýdiscussed, Green Tree Coffee operates entirely asÌýanÌýe-commerce shop forÌýnow, Daily operations revolve almost entirely around filling orders, shipping them, andÌýrestocking supply before itÌýsells out. Relations with current providers are rock-solid due toÌýour founder’s personal experience with these businesses.

Orders are packed into custom-printed coffee bags made ofÌýrecyclable paper, each one bearing aÌýshort text about where andÌýhow theÌýindividual coffee was grown. They are then packed into aÌýcardboard box inÌýorder toÌýbeÌýdelivered toÌýtheÌýcustomer. UPS comes byÌýforÌýaÌýregular daily pickup. While international orders remain small, they are shipped from aÌýlocal post office forÌýairmail delivery asÌýneeded.

Restock deliveries are inventoried atÌýtheÌýend ofÌýeach business day forÌýtheÌýsake ofÌýselling them theÌývery next day.

Financial Plan

Year 1Year 2Year 3
Sales$35519$160000$350000
Direct Cost ofÌýSales$5070$22857$40000
Other Production Expenses$7370$33226$50000
Total Cost ofÌýSales$12440$56083$90000
Gross Margin$23079$103916$260000
Gross Margin %64.9%64.9%74%
Expenses
Payroll$0$50000$75000
Sales andÌýMarketing andÌýOther Expenses$1000$5000$7500
Depreciation$500$500$500
Leased Equipment$0$0$0
Utilities$1500$1500$1500
Insurance$2000$2000$2000
Rent$12000$25000$25000
Payroll Taxes$0$1000$2000
Other
Total Operating Expenses$15500$29500$30500
Profit Before Interest andÌýTaxes$7579$74416$229500
EBITDA$9,579$77316$233500
Interest Expense$900$1600$1600
Taxes Incurred$1100$1300$2400
Net Profit$20019$27034$63343
Net Profit/Sales56.3%16.8%18.09%

***

IÌýhope, you’ll now have aÌýthorough framework toÌýcreate aÌýbusiness plan ofÌýyour own. And remember: ifÌýtheÌýplan doesn’t work, change theÌýplanÌý— not your goal toÌýstart aÌýbusiness!

Ìý

About The Author
Lina is a content creator at ºÚÁÏÃÅ. She writes to inspire and educate readers on all things commerce. She loves to travel and runs marathons.

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