[NAME OF COMPANY] BUSINESS PLAN

[NAME OF COMPANY]
BUSINESS PLAN
[date business plan issued]
Contact: [name], CEO [or President]
[address]
[phone no. & fax no.]
[email]
[web site]
The information contained in this business plan is confidential and proprietary to [NAME OF
COMPANY] (the “Company”) and is intended only for the persons to whom it is transmitted by the
Company or its representatives. Any reproduction of this document, in whole or in part, or the
divulgence of any of its contents without the prior written consent of the Company, is prohibited.
This is a business plan. It does not imply and shall not be construed as an offering of securities. Persons
interested in pursuing an investment should contact their professional advisors.
Business Plan Copy No. _______
Confidentiality Agreement
The undersigned reader acknowledges that the information provided by [NAME OF
COMPANY] in this business plan is confidential. Therefore, the undersigned reader
agrees not to disclose any of such information without the express written permission
of [NAME OF COMPANY].
It is hereby acknowledged by the undersigned that the information to be furnished in
this business plan is in all respects confidential in nature (other than such information
which is already in the public domain through other means) and that any disclosure or
use of same by the undersigned may cause serious harm or damage to [NAME OF
COMPANY].
Upon request, this document is to be immediately returned to [NAME OF COMPANY].
Signature
Print Name
Date
- ii -
TABLE OF CONTENTS
Confidentiality Agreement ............................................................................................................................................. i
EXECUTIVE SUMMARY ............................................................................................................................................... 1
I.
COMPANY OBJECTIVES............................................................................................................................... 2
1.1
Goals & Objectives................................................................................................................................. 2
1.2
Purpose of Business Plan ....................................................................................................................... 2
1.3
Vision / Mission Statement .................................................................................................................... 2
II.
THE COMPANY ................................................................................................................................................ 3
2.1
History & Background ........................................................................................................................... 3
2.2
Directors .................................................................................................................................................. 3
2.3
Outside Consultants & Professional Advisors...................................................................................... 3
2.4
Strategic Alliances .................................................................................................................................. 4
III.
DESCRIPTION OF PRODUCTS & SERVICES ........................................................................................ 5
3.1
Products & Services................................................................................................................................ 5
3.2
Location................................................................................................................................................... 5
3.3
Implementation Plan............................................................................................................................... 6
IV.
MARKET ANALYSIS & MARKETING PLAN......................................................................................... 7
4.1
Industry Analysis .................................................................................................................................... 7
4.2
Target Market.......................................................................................................................................... 7
4.3
Competitors ............................................................................................................................................. 8
4.4
SWOT Analysis ...................................................................................................................................... 8
4.5
Marketing Strategy ................................................................................................................................. 9
4.6
Pricing Strategy....................................................................................................................................... 9
4.7
Discounts............................................................................................................................................... 10
V.
MANAGEMENT & ORGANIZATION .................................................................................................... 11
5.1
Management Team ............................................................................................................................... 11
5.2
Organizational Structure ...................................................................................................................... 11
5.3
Employees ............................................................................................................................................. 11
5.4
Operational Plan ................................................................................................................................... 11
VI.
FINANCIAL PLAN ......................................................................................................................................... 12
6.1
Important Assumptions ........................................................................................................................ 12
6.2
Sales Forecast........................................................................................................................................ 12
6.3
Break-Even Analysis ............................................................................................................................ 13
6.4
Capital Requirements ........................................................................................................................... 13
6.5
Projected Profit and Loss ..................................................................................................................... 15
6.6
Projected Cash Flow ............................................................................................................................. 16
6.7
Projected Balance Sheet ....................................................................................................................... 17
6.8
Business Ratios ..................................................................................................................................... 18
APPENDIX “A” [support documents] ...................................................................................................................... 19
[NAME OF COMPANY]
BUSINESS PLAN
EXECUTIVE SUMMARY
(NOTE: The Executive Summary is the section of the business plan in which you give an overview of the business, its
present status and future direction, and highlight the key points and the purpose of your business plan. This section
should be written after the rest of the business plan, and should not exceed 3 pages in length - that’s why it’s called a
“summary”.)
Company Background
[for existing companies]
[NAME OF COMPANY] (the “Company”) is a [describe, e.g. “a corporation incorporated under the laws of the
State/Province of ___________”] which has been engaged in the business of ____________ in the _________
area for the past ____ years.
[for new companies:]
[NAME OF COMPANY] (the “Company”) is in the process of being formed/created as a [describe, e.g. “a
corporation incorporated under the laws of the State/Province of ___________”], for the purpose of
___________________ in the _________ area.
The Company [is/will be] managed by a team of _____________ individuals with a total of _______ years
experience in the field of ________________, a chief financial officer with _____ years of accounting and
administrative experience, and _________ [list].
[for sole proprietorship]
[NAME OF BUSINESS] (the “Business”) is a sole proprietorship owned and operated by
_________________ (the “Principal”). The Principal has ____ years experience as a ____________________
in the State/Province of _____________. His/her work experience includes _______________.
Business Concept
The business will be both a full-serve and self-serve facility which will sell gasoline, motor oil, lubricants,
tires, batteries and accessories, as well as a convenience store selling packaged foods such as candy and
potato chips, newspapers and magazines, coffee and cigarettes. Self-serve customers will be able to pay at
the pumps using a gas card, debit card or a major credit card.
The Market
[briefly outline the market and available customer base in the area, the number of competitors already servicing that
market, and the reason(s) why customers will choose your business over the competitors]
Capital Requirements
The owners of the Company have invested $_______________ in the business. The Company requires an
additional $_________________ in start-up capital. The funding will be used to _______________________
[give summary].
-2-
I.
COMPANY OBJECTIVES
(NOTE: This section sets out the corporate objectives, mission statement, current phase of your business, and the
company’s goals and objectives for future growth.)
1.1
Goals & Objectives
[In this section, set out the company’s goals (desired achievements / sales levels / etc) and objectives (steps necessary
in order to reach the goals).]
The Company’s goals are:
•
•
•
•
revenues of $______________ by the end of Year 1, and $_____________ by the end of
Year 3 of the Plan;
gross margin of at least ____%;
positive net worth by the end of Year ___;
[other]
In order to attain the above goals, the Company will carry out the following specific objectives:
•
1.2
[list objectives and dates by which they will be accomplished in order to reach the stated
goals]
Purpose of Business Plan
The Company has developed a comprehensive business plan as a tool to focus our efforts to start up and
carry on the business operations. To implement these plans, the Company requires [loan / investment]
funding totaling $____________ for the following purposes: [list]
1.3
•
perform an environmental assessment and prepare the site (est. $_________);
•
purchase and install machinery and equipment (est. $_________);
•
construct the building (est. $_________);
•
purchase fuel and inventory (est. $_________);
•
card readers for each self-serve fuel point (est. $________);
•
lighting and uninterrupted power source (UPS) protection (est. $_________);
•
purchase insurance, obtain permits and licenses (est. $_________).
Vision / Mission Statement
{This is where you will describe the company’s vision (where the business is heading) and mission statement (how
business will be conducted).]
The Company’s mission is to provide innovative, practical and top-quality products that save time and
improve the way people do business at a gas station and convenience store. We believe our first
responsibility is to the consumer who uses our products. In carrying out our day-to-day business
operations, we strive to:
•
•
•
treat our employees with fairness and respect, and create an enjoyable working
atmosphere that inspires loyalty and dedication;
follow the philosophy that our customers are our first priority, and ensure that all of our
personnel are well-trained in providing reliable, timely and efficient customer service;
be considered as a responsible business leader in the community.
-3-
II.
THE COMPANY
(NOTE: Use this section to describe the history, structure, purpose, operations, board of directors, outside
consultants and strategic alliances of the business. If you are starting up a new company, describe the proposed
structure, and set out the reasons for starting up the business.)
2.1
History & Background
[The following is provided by way of example and should be revised to fit your particular circumstances.]
The Company was incorporated on _____________ [date] in the [State/Province] of __________. The head
office of the Company is located at [address].
To date, the Company has issued ___________ shares of common stock [provide details on all shares of stock
issued and outstanding]. The following table sets out the current shareholders and the number of shares
owned by each:
Name of Shareholder
Address
No. & Class of Shares
The remainder of the issued and outstanding common shares are retained by the Company for [future
distribution / allocation under the Company’s employee stock option plan / etc].
The Company currently has outstanding shareholder loans in the aggregate
$___________________. The following table sets out the details of the shareholder loans:
Name of Shareholder
2.2
Amount of Loan
Date of Loan
sum
of
Balance Outstanding
Directors
The Company’s Board of Directors, which [will be/is] made up of highly qualified business and industry
professionals/experts, [will be a valuable asset to the Company and instrumental to its development by
assisting/assists] our management team in making appropriate decisions and taking the most effective
action; however, they [will not be/are not] responsible for management decisions. The following persons
[will make up the/are the current] Board of Directors of the Company: [list each person on the Board]
Name of Person
business & educational background, past industry experience, other companies in which the
person played a key role
Name of Person
business & educational background, past industry experience, other companies in which the
person played a key role
2.3
Outside Consultants & Professional Advisors
At present, no outside consultants or professional advisors have been retained. [if outside consultants have
been retained, list them and their credentials:] The Company’s outside consultants and professional advisors
provide tremendous input and support to enable management to make well-informed, creative and
appropriate decisions:
•
[accountant/cpa]
-4-
•
•
2.4
[legal counsel]
[others]
Strategic Alliances
[List strategic alliances / partnerships – such as the company’s relationship with its suppliers - which assist the
company in providing high quality service and establishing/maintaining its reputation, and which give the company
an additional competitive edge]
-5-
III.
DESCRIPTION OF PRODUCTS & SERVICES
(NOTE: In this section, describe your current products and services, the unique features, prices, etc that you offer,
current and future R&D plans, enhancements, production and distribution strategies. Include data on proprietary
processes, patents, copyrights, etc, which make your products unique.)
3.1
Products & Services
[Describe the company’s products and services in detail, and discuss why customers will purchase your products /
services over those of your competitors]
The business will be both a full-serve and self-serve facility which will sell gasoline, motor oil, and
accessories, as well as a convenience store selling snack foods, newspapers and magazines, coffee and
cigarettes, and lottery tickets. Ideally, after gassing up their vehicle, customers will want to come inside to
use our clean, well-maintained restrooms and to purchase items from the convenience store.
Free air and water will be available. All major credit cards will be honored, and debit cards will be
accepted. A drive-up telephone station will be available. Frequent customer merchandising programs
and tourist discounts will be developed and offered. Heightened security standards will be met.
Fuel & Automotive Products
The business will sell all grades of fuel (diesel, high, medium and low grades), as well as motor oil,
lubricants, tires, batteries, and car accessories. Customers can choose between full service and self service.
Self-service customers will be able to avoid standing in line at the cash register and pay for their fuel
purchase at the pumps, using a gas card, debit card or major credit card.
Convenience Store
The convenience store will sell snack foods such as candy, chocolate bars, potato chips and similar items.
We also plan to sell pre-made sandwiches and baked goods, which will be brought in from _________
[name of supplier]. The convenience store will also sell lottery tickets, tobacco, coffee, cold drinks,
newspapers and magazines, grocery items such as bread, milk, toilet paper, and other items that people
typically run out of in between trips to the supermarket, and “emergency” items such as band-aids, pain
killers, batteries, etc. There will be an ATM machine available in-store, as well as ___________ [list other
products / services].
3.2
Location
The location is ________________________ [indicate where the station will be located], on a lot that measures
__________ x ________ ft. The lot size allows for future expansion. The site offers easy access from
______________ [name of highway of other major traffic artery]. Hours of operation will be ____ days a week
[indicate which days if operations are less than 7 days a week], from _____ a.m. to ______ p.m.
The location will be comprised of _____ self-service pumps, ____ full-service pumps, _______ service
bays, a convenience store, and public restrooms. The fuel will be contained in above ground tanks.
Underground storage tanks usually fail due to rust perforation. Leaks can occur because of tank damage
or at piping connections. Above ground tanks are easier to maintain and inspect, and to repair and
replace if necessary.
For the business to be successful, location on a main highway with steady volumes of through traffic is
key. Other primary factors are easy access, plentiful parking, and high visibility. This location fills all of
those requirements. A traffic count was taken over a ___ month period during peak tourist season from
_______ to _________ of _____ [fill in months and year]. An average of _______ vehicles per day used the
highway running past the location. These numbers show that a gas station at this location is feasible.
-6-
3.3
Implementation Plan
The business will begin operations upon receiving funding. An environmental audit will be completed as
required by law, following which, the site preparation and construction will commence. The Company
will install above-ground gas tanks that are in compliance with applicable laws. _______________ [name of
supplier] will supply the oil and gas to the facility. The Company will also apply for all necessary permits
and licenses.
The following table outlines the steps to be taken to start the business, with projected start and
completion dates:
Action Item
Land use designation
Environmental audit
Funding application
Fuel sales permits
Tobacco sales license
Contract with supplier
Order machinery & equipment for fuel sales
Prepare site
Install fuel equipment and commence
construction
Order store fixtures & office equipment
Installation of signage
Advertising
Hire staff
Order inventory for convenience store
Grand opening
Start Date
Completion Date
-7-
IV.
MARKET ANALYSIS & MARKETING PLAN
(NOTE: Use this section to identify your current market (if an existing business) and/or your target market (for new
or expanding businesses), the growth potential of the market, market share, competitors and their products and
services, factors which impact your business (such as seasonal sales, niche markets, etc). This section will also be
where you outline your marketing plan (sales, advertising, PR).)
4.1
Industry Analysis
[Market research will be required for this section. Discuss the industry in general, and specifically in your area,
growth or lack of growth, current trends, etc]
As of ____________, the world price for crude oil was $_________. Refining costs are the component of
price added by the refining company to cover its costs and profit margin. Refiner margins average 10-15%
of the total pump price. This pays for refinery capital costs, refinery fuel, wages and salaries, profits and
corporate taxes. Taxes are usually the largest single component, averaging ____% of the pump price. [give
applicable figure for your region]
There is virtually no difference between the various brands of gasoline. If competing gas stations are
similar in service, convenience and cleanliness, many customers will switch stations based on price. This
means competition between stations is based almost exclusively on price, and the best way to attract
customers is to sell for less. As a result, gasoline retailers must keep their mark-ups as low as possible.
Mark-ups are generally less than 10%, and must cover land costs, salaries, fuel delivery, site maintenance,
overhead, and profits.
According to the Petroleum Communication Foundation, profits realized on fuel sales are marginal. With
such small mark-ups, the best way to stay in business is to sell in large volume. The best way to do this is
to reduce retail margins. An average urban gas station sells ________ [gallons / litres] of gasoline
annually. [Check current figures, and quote source.]
Despite huge volume sales, margins are so thing that almost all gas stations rely on non-fuel products to
increase revenues and margins. This is why gas stations usually run in concert with convenience stores
and/or restaurants, to increase profits through the sale of food items, tobacco, soft drinks, maps,
magazines, and similar items.
Nationally, there are approximately ____________ gas retailers. In the ___________ area, there are
currently ________ gas stations. But although competition has increased over the past few years, fuel
sales continue to increase annually. The highest level of competition is in the larger urban centers, where
major supermarkets with gas bars take the lead. This creates an opportunity for independent stations in
smaller centers where there is less competition.
4.2
Target Market
[set out demographics for your target market - age range, gender, education level, income level, etc - to create a
profile of your target market segments.]
The business will target two major market segments, (i) the general population of ___________ and the
surrounding area, and (ii) tourists and travelers to the area. In terms of market segmentation advantages,
the Company will use the fact that we [if applicable: are open 24 hours], have quality products, provide a
means for customers to pay at the pump, and have competitive prices, to leverage our position.
Population of ________ and Surrounding Area
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