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Business Plan Checklist
SBA's Checklist for a Business Plan
Introduction
[ ] Give a detailed description of the business and its goals.
[ ] Discuss the ownership of the business and the legal structure.
[ ] List the skills and experience you bring to the business.
[ ] Discuss the competitive advantages you and your business have.
Marketing
[ ] Discuss the products/services offered.
[ ] Identify the customer demand for your product/service.
[ ] Identify your market, its size and locations.
[ ] Explain your advertising and marketing strategy.
[ ] Explain the pricing strategy.
Financial Management
[ ] Explain your source and the amount of initial equity capital.
[ ] Develop a monthly operating budget for the first year.
[ ] Develop an expected return on investment and monthly cash flow for
the first year.
[ ] Provide projected income statements and balance sheets for a twoyear
period.
[ ] Discuss your break-even point.
[ ] Explain your personal balance sheet and method of compensation.
[ ] Discuss who will maintain your accounting records and how
they will be kept.
[ ] Provide ”what if“ statements that address alternative approaches to
any problem that may develop.
Operations
[ ] Explain how the business will be managed on a day-to-day basis.
[ ] Discuss hiring and personnel procedures.
[ ] Discuss insurance, lease or rent agreements, and issues
pertinent to your business.
[ ] Account for the equipment necessary to produce your products or
services.
[ ] Account for production and delivery of products and services.
Concluding Statement
[ ] Summarize your business goals and objectives and express your
commitment to the success of your business.
- Retain advisors who are compatible with your management style, and use these professionals wisely. Accountants don't just prepare income tax returns; they help with tax planning, financial reports and provide assistance in securing business loans. Insurance and financial advisors can help you establish retirement and savings plans that capitalize on the benefits of business ownership. Discuss your plans and objectives, explaining clearly what you expect from any advisor's services. Maintain good financial records, and keep your advisors posted on changes and new directions in your business.
- When interviewing a prospective attorney, be sure to ask what other types of small businesses the attorney represents and how long he or she has been practicing law. Check with the state bar association to make sure he or she is a member, licensed to practice law in the state where your small business is located. Be candid and honest, telling him or her all the facts - good and bad - about your business.
- As your small business grows, you may need to retain a payroll service and an accountant to keep your books in order and to keep current with IRS regulations. See" For More Information" on page 22. You should also consult with an insurance advisor for coverage to protect assets and comply with employer regulations, such as worker's compensation. Again, ask other small business owners for recommendations. If you have an attorney, he or she may have suggestions.
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