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Table of Contents >
   Part L. Generating, Managing and Sustaining Financial Res... >
      Chapter 42. Getting Grants and Financial Resources >
         Section 2. Creating a Business Plan >
             Tools & Checklists - A checklist that summarizes the major points contained in the section. >

Creating a Business Plan

  

Tools & Checklists

 Contributed by Bill Berkowitz Edited by Adapted from the work of the Massachusetts Office of Business Development

Tools

Tool 1: Sample Balance Sheet
Tool 2: Sample forecasted statements of income and retained earnings

Checklist

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.


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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.


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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 are hazy about 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 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.


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