*This information is taken from the Small Business Center Network (SBCN), part of the North Carolina Community College System, and the full packet, entitled “How to Develop a Business Plan” can be viewed here.
*This blog is Part 5 of a series on small business guidance. Stay tuned for more blogs. Check out Part 1, Part 2, Part 3, Part 4, and Part 5.
The business’s operational plan should be included in the business plan.
In our last blog post we discussed an operational plan. Recall that: an operational plan describes the daily operations of the business, such as its location, equipment, people, and processes. The business plan usually touches on these specific topics, but in the operational plan you will want to go into more detail about your business’s location, equipment, inventory, suppliers, etc.
Our last blog post featured key topics to include in your business’s operational plan. This blog post highlights a few more important topics that are worth discussing in your operational plan.
More items to consider in your operational plan:
- Management and organization
- Who is going to manage the business?
- Include professional and advisory support positions, such as board of directors, attorney, accountant, insurance agent, banker, bookkeeper, mentors, key advisors, etc.
- How much money will be contributed by each investor
- What ownership percentage will each investor have? What rights does that percentage give the investor?
- Personal Financial Statements-include personal financial statements for each owner and major stockholder, showing assets and liabilities held outside the business
- Startup Expenses and Capitalization
- Accurately estimate your startup expenses
- Add contingencies where necessary
- Financial Plan-include:
- 12-month profit and loss projection-at least
- Cash-flow projection
- Projected balance sheet
- Break-even calculation
Lastly, include details and studies used in your business, such as:
- Industry studies
- Blueprints and diagrams of facility
- Detailed list of equipment owned or to be purchased
- Copies of leases, deeds, contracts
- Market research studies
- List of assets available as collateral for a loan
Please know that each and every business is unique; so, not all aspects of a business plan will apply to your business. Use what works for you and your business.
Part 7 of this blog series will discuss how to refine or change your business plan.
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