A Complete Business Plan Is Essential – Part II
Components that are marked with * means that is already contained in Quick Business Plan Writing Made Easy
As we discussed before under the Marketing Plan, you may wish to summarize the information in these exercises into a narrative personnel plan. Just make sure you don’t forget some important information when you do that.
You have to know what sort of people you want to hire and you have to decide how many
people you need.
Each job description should include several items of information:
- Job Title
- Job Duties
- Skills Required, Personality Desired
- Education Required
- Pay Rate and Monthly Total Wages/Salary, including benefits
16.Specific Business Goals
Specify list your of your business goals. Ask yourself a question like what do you want your business to accomplish for you, freedom from 9 to 5; money—and if so, how much; more time with the children; making the world or your little part of it a better place etc.
17.Personal Financial Statement
Your personal financial statement will list your personal assets, liabilities, income and expenses. It tells your backers a lot about your ability to handle money. Don’t be discouraged if your financial condition is weak. Your backers want to know about you, the good and the bad, and they understand that you need money. Personal financial statement:
It is description and estimation the current value of everything you own. List of income:
- Cash and Cash Equivalents – list the approximate cash balance in each of your financial accounts. Include accounts in banks, savings and loans, thrifts, credit unions or any other institutions.
- Marketable Securities – stocks, mutual funds and bonds you own which are publicly traded.
- Cash Value of Life Insurance – if you own whole life
insurance policies, they may include a cash surrender value, which will
probably be less than the face value of the property.
- Accounts and Notes Receivable – business assets and other assets that are not
shown on a separate financial statement for your business or secured by real property.
- Trust Deeds and Mortgages
- Real Estate – real estate that you own.
- Personal Property – anything you own that is not real estate.
- Other Assets
- Credit Cards and Revolving Credit Account – list bank cards and revolving accounts at stores.
- Unsecured Loans – unsecured notes to banks, individuals, credit unions, savings and loans or any other person or institution.
- Loans Secured by Real Estate – list each note and deed of trust you owe.
- Loans Secured by Personal Property – loans secured by equipment, vehicles, business inventory or anything other than real estate.
- Loans Against Life Insurance Policies – borrow against a whole life insurance policy
- Other Liabilities
3. Net Worth
Is total liabilities from your total assets.
4. Annual Income
- Gross Salary and Wages – all the sources of your income, including wages, earnings from your business and independent contractor work.
- Income From Receivables and Loan Repayments – If anyone owes you money, list the annual payments you receive.
- Rental Property Income – annual rental payments.
- Dividends and Interest – sources and annual amount you expect to receive.
- Income From Business or Profession – if you own a business
- Other Income
5. Annual Living Expenses
- Real Estate Loan Payments or Rent – your mortgage holder or landlord and your monthly payment.
- Property Taxes and Assessments – liabilities if you own real property in a year.
- Federal and State Income Taxes – totals from last year’s income tax forms.
- Insurance Premiums – everything you expect to pay for the year that won’t be covered through your job.
- Living Expenses – regular personal living expenses that weren’t covered earlier.
- Other Expenses:
Strong and Weak Points
List personal and business strengths and weaknesses. Include everything you can think of, even if it doesn’t appear to be related to your business.
General and Specific Skills
Businesses need two kinds of skills to survive and prosper: skills for business in general and skills specific to the particular business. It is good to put all skills that your business needs and please your potential backers with it.
Likes and Dislikes
Make a list of the things you really like doing and those you don’t enjoy. Write this list without thinking about the business simply concentrate on what makes you happy or unhappy. This is good because people that like business what they do are often more successful than people that work job that they don’t like.