Business Sample

Introduction to the Sample Plan

The following document is a sample of a finished business plan. In your final plan, you have the opportunity to elaborate on those ideas in your outline that you feel are most integral to your business. In composing your business plan, you can follow your outline as loosely or closely as you choose. For instance, in the sample plan, the Executive Summary, which is the last section of the Business Planning Wizard, is presented first in order to emphasize the most impressive features of the business. Your goal in composing a finished business plan is to construct the most comprehensive, thorough document possible, in order to attract investors and to confirm that you have taken the time to explore as many potential issues for your business as may arise.


Mr. Richard Carey
Canton Street
Seattle, Washington 22222


Dear Mr. Carey:

My attorney, Mr. William Hollands, suggested I write to you regarding my business, Northwind Traders. I am currently seeking funding, and I believe that my company would coincide with your interest in businesses relating to the travel industry makes my company a great investment for you.

Northwind Traders is positioned to take advantage of the significant market opportunities available in the customized travel-planning field. Through a professional approach to marketing, experienced management, and an emphasis on outstanding customer support and service, Northwind Traders can become the Greater Seattle area’s premier provider of planning services for European adventure travel through a strong marketing campaign, experienced management, and an emphasis on outstanding customer support and service. From that base, the company will expand to become a regional force.

We are seeking $83,500 in funding, and anticipate this to be the extent of the funds required. The funds will be used to refurbish the shop, to expand the staff, and to developincrease marketing activities, primarily our Web site and databasee development.

I appreciate your consideration of the business plan for Northwind Traders. I will contact you next week in approximately ten days to see if you have any questions andor to discuss how we may proceed. Thank you.

Sincerely,



Heather Mitchell
President



Table of Contents
EXECUTIVE SUMMARY 1
DESCRIPTION OF THE COMPANY 1
MISSION STATEMENT 1
PRODUCTS AND SERVICES 1
FINANCIAL FORECAST 2
FINANCING REQUIREMENTS 2
HISTORY AND POSITION TO DATE 4
THE COMPANY’S MISSION 4
MANAGEMENT TEAM AND KEY PERSONNEL 4
SERVICES 6
TRANSPORTATION 7
COMPANY HISTORY 7
GUARANTEES AND WARRANTIES 8
BUSINESS STRUCTURE 8
MARKET RESEARCH 8
ECONOMIC AND SOCIAL FACTORS 9
COMPETITIVE ENVIRONMENT 9
LONG-TERM OPPORTUNITIES 9
GEOGRAPHIC AREA 10
MARKET DESCRIPTION 10
TARGET CUSTOMERS 10
MARKET DEFINITION 10
MARKET OPPORTUNITIES 11
COMPETITIVE ANALYSIS 12
COMPETITIVE ADVANTAGES 13
COMPETITORS’ POSITIONS 14
POTENTIAL FUTURE COMPETITION 14
BUSINESS STRATEGY 15
CUSTOMER INCENTIVES 15
ADVERTISING AND PROMOTION 15
SALES AND MARKETING 16
COMMISSION 17
OPERATIONS 17
PREMISES 17
CHOICE OF LOCATION AND PREMISES 17
HOURS OF OPERATION 17
EQUIPMENT 18
STAFFING 18
FORECASTING 18
SALES FORECAST 18
CASH FLOW PROJECTIONS 20
INCOME STATEMENT 20
BALANCE SHEET 21
PERFORMANCE RATIOS 21
BREAK-EVEN 21
FUNDS REQUIRED AND TIMING 21
FUNDING OPTIONS 22
BUSINESS CONTROLS 23
ACCOUNTING SYSTEM 23
QUALITY CONTROL 23
NEW TOUR OPERATORS 23
CAPACITY 23
LONG-TERM GOALS 24
STEPS FOR ACHIEVING GOALS 24
POSITION 25
RISKS ASSOCIATED WITH GROWTH 25
APPENDIX 1: MARKET RESEARCH 26
APPENDIX 2: FINANCIAL FORECASTS 35
EXECUTIVE SUMMARY 6
THE COMPANY 6
THE COMPANY’S MISSION 6
PRODUCTS AND SERVICES 6
MARKETING AND SALES TECHNIQUES 6
THE COMPETITION 7
TARGET MARKET 7
OPERATIONS 8
MANAGEMENT 8
FINANCIALS 8
FUNDING 9
HISTORY AND POSITION TO DATE 10
THE COMPANY’S MISSION 10
MANAGEMENT TEAM AND KEY PERSONNEL 10
SERVICES 12
TRANSPORTATION 13
COMPANY HISTORY 13
GUARANTEES AND WARRANTIES 14
BUSINESS STRUCTURE 14
MARKET RESEARCH 14
ECONOMIC AND SOCIAL FACTORS 15
COMPETITIVE ENVIRONMENT 15
LONG-TERM OPPORTUNITIES 15
GEOGRAPHIC AREA 16
MARKET DESCRIPTION 16
TARGET CUSTOMERS 17
MARKET DEFINITION 17
MARKET OPPORTUNITIES 18
COMPETITIVE ANALYSIS 19
COMPETITIVE ADVANTAGES 22
COMPETITORS’ POSITIONS 22
POTENTIAL FUTURE COMPETITION 23
BUSINESS STRATEGY 23
CUSTOMER INCENTIVES 23
ADVERTISING AND PROMOTION 24
SALES AND MARKETING 25
COMMISSION 25
OPERATIONS 25
PREMISES 25
CHOICE OF LOCATION AND PREMISES 26
HOURS OF OPERATION 26
EQUIPMENT 26
STAFFING 26
FORECASTING 27
SALES FORECAST 27
CASH FLOW PROJECTIONS 28
INCOME STATEMENT 28
BALANCE SHEET 29
PERFORMANCE RATIOS 29
BREAK-EVEN 29
FUNDS REQUIRED AND TIMING 30
FUNDING OPTIONS 31
BUSINESS CONTROLS 31
ACCOUNTING SYSTEM 31
QUALITY CONTROL 31
NEW TOUR OPERATORS 32
CAPACITY 32
LONG-TERM GOALS 32
STEPS FOR ACHIEVING GOALS 32
POSITION 33
RISKS ASSOCIATED WITH GROWTH 34
APPENDIX 1: MARKET RESEARCH 35
INTERNATIONAL ARRIVALS BY WORLD REGION 35
INDICATIONS OF TOURISM DEMAND IN 1997 36
SUMMARY OF FINDINGS FROM MARKET RESEARCH SURVEY 37
NORTHWIND TRADERS QUESTIONNAIRE 41
INTERNET GROWTH AND THE SALE OF TRAVEL SERVICES 44
APPENDIX 2: FINANCIAL FORECASTS 46
CASH FLOW PROJECTION YEAR ONE 46
INCOME STATEMENT, YEARS ONE TO THREE 48
BALANCE SHEET AT END OF YEAR ONE 51
SOURCES AND USES OF FUNDS 53




EXECUTIVE SUMMARY

The Description of the Company
Northwind Traders, Inc. provides travel-planning services for European adventure vacations to residents ofindividuals in the Ggreater SeattleRedmond area. The service industry, including travel agencies, is one of the fastest growing business sectorsareas of the economy, and Northwind Traders intends to capitalize on the success of this industry by taking advantage of travel planning opportunities in the Pacific Northwest region.


President Heather Mitchell and Vice President of Sales and Marketing Jim Kim currently hold the company’s stock. Prior to starting the Northwind Traders travel agency, Ms. Mitchell cofounded, co-owned, and operated the Northwind Traders clothing store. She has selected a small team with extensive travel, sales, and computer skills, all of whom will be invaluable to the new venture. Her coworkers bring a combined total of 35 years of travel industry experience to the agency.

President Heather Mitchell and Vice President of Sales and Marketing Jim Kim currently hold the company’s stock.

The Company’s Mission