Table of Contents >
Chapter 42. Getting Grants and Financial Resources >
Section 2. Creating a Business Plan >
Creating a Business Plan |
Tools & Checklists | Contributed by Bill Berkowitz Adapted from the work of the Massachusetts Office of Business Development |
Tool 1: Sample Balance Sheet
Tool 2: Sample forecasted statements of income and retained earnings
Tools
Sample Balance Sheet and Income Forecast forms from a guide to writing a business plan are reproduced below. Suggestion: If you have a real business idea in mind, try actually filling out these forms (possibly with some small adaptations) for your proposed product or service. What conclusions do you draw?
Tool # 1: Sample Balance Sheet
| Current Year | Forecasted Periods |
| Assets |
| Current assets: | $ | $ |
| Cash (Note) |
|
|
| Inventory (Note) |
|
|
| Prepaid Expenses |
|
|
| Total Current Assets |
|
|
| Property Equipment (Note): |
|
|
| Equipment |
|
|
| Office Furniture and Fixtures |
|
|
| Leasehold Improvements |
|
|
| Less - accumulated depreciation and amortization |
|
|
| Other assets: |
|
|
| Organization costs, net of accumulated amortization (Note) |
|
|
| Liabilities and Stockholders' Equity |
| Current Liabilities: |
|
|
| Current portion of long-term obligations |
|
|
| Accounts payable (Note) |
|
|
| Accrued expenses |
|
|
| Federal and state income taxes payable |
|
|
| Total current liabilities |
|
|
| Long term obligations (Note) |
|
|
| Stockholder's equity: |
|
|
| Common stock, no par value |
|
|
| Authorized - shares |
|
|
| Issued and outstanding - shares |
|
|
| Retained Earnings (accumulated deficit) | $ | $ |
A business plan should include at a minimum the current year?s financial results and a forecasted financial statement which includes significant forecast assumptions (sample included). The forecasted financial statements should be presented for a minimum of three years with five years preferred. The forecast should be presented monthly for year one, quarterly or monthly for year two, and annually for all subsequent forecasted periods.
Practical note: Total liabilities and stockholders? equity should equal total assets.
Return to top
Tool # 2: Sample forecasted statements of income and retained earnings
| | Current Year | Forecasted Periods |
| Revenue (Note): | $ | $ |
| Cost of Sales (Note): | | |
| Salaries and wages | | |
| Payroll taxes and fringe benefits | | |
| Product costs | | |
| Rent expense | | |
| Equipment lease | | |
| Utilities | | |
| Depreciation and amortization | | |
| Total Operating Expenses | | |
| Gross margin (deficit) | | |
| Selling, general, and administrative expenses (Note): | | |
| Advertising | | |
| Administrative | | |
| Salaries and wages | | |
| Payroll taxes and fringe benefits | | |
| Commissions | | |
| Insurance | | |
| Depreciation and amortization | | |
| Total selling, general and administrative | | |
| Income from operations | | |
| Other (income) expenses | | |
| Interest expense | | |
| Interest income | | |
| Total other (income) expense | | |
| Income before provision for income taxes | | |
| Provision for income taxes (Note): | | |
| Current federal and state income taxes | | |
| Net income (loss) | | |
| Retained earnings, beginning of period | | |
| Retained earnings, end of period | $ | $ |
Practical note: Ending retained earning should agree with the ending retained earnings number on the balance sheet.
Return to top
Checklist
Here, you'll find a checklist summarizing the major points contained in the text.
___You understand the connection between business and community development.
___You understand that it is legal for a nonprofit group to make a profit.
___You understand other ways to ensure your financial sustainability.
___You know that a business plan is a written document that describes in detail what kind of business you intend to operate, how you intend to operate it, and why you believe you will succeed.
You understand why you should have a business plan:
___To clarify your own thinking
___To raise confidence among group members
___To raise confidence among potential outside backers
You understand when you should make a business plan:
___When you are seriously thinking about embarking on a business venture
___When you need clarity on the business details
___When you want expert feedback or advice on the specifics of your ideas
___When you need to attract outside help
You understand how to make a business plan:
You have included the following in your business plan:
___A cover page
___A table of contents
___An executive summary
___A description of your organization
___A description of your management
___A description of your product or service
___Information about your market
___Information about your competition
___Details of your operating plan
___Financial information
___Timelines
___Appendices
You understand that the plan should be written simply, clearly, honestly, and to the point.
You know and have avoided the ten most common writing pitfalls:
___The writing is unclear.
___The plan is too long.
___The layout is poor and/or illogical.
___An executive summary is omitted.
___There is too much technical jargon.
___There is insufficient detail.
___The market is not defined, or a marketing plan is missing.
___No mention or sketchy mention is made of the competition.
___The financial information given is not straightforward.
___The reader is given no compelling reason to invest in the plan.
You understand how the plan should be packaged:
___You have printed it on high-quality paper.
___It is approximately 20 pages.
___You have used color printing and tasteful graphics.
___It is bound according to the standards of your readers.
___It is totally error-free.
Return to top