Hume Management Consulting is a professional consulting firm that helps entrepreneurs, business owners and executives develop and write concise and compelling business plans.

Business plans are the foundation upon which successful businesses are built and should be one of the first things researched and analyzed.

For many businesses this should be one of the first things that is researched and analyzed. Here are some basic questions all business owners should consider before starting out. Some info will apply, some won't.

Executive Summary

Briefly summarize your plan in 1-4 paragraphs. Short, concise language. State legal business name, address, phone number, and legal form of business (sole proprietorship, partnership, LLC, S-Corporation), and tax ID number of business. List owner's names (s). What is the purpose of the business plan? Capital needs-If applying for a loan, state desired amount, term of the loan, collateral and repayment plan.

General Company Description

• Include the mission statement, vision or goals (be specific and on point)
• Identify the nature of the business.
• If this an existing business, provide a brief history of the company.

Products or Services

• What are the principle products and/or services you offer? (specific)
• What is the price range for your product or service? Include a price sheet if applicable.
• What future plans do you have for growth or diversification?
• What are the unique features of the businesses' products or services? (benefits)

The Market and Competitors

Who wants to buy your services or product? (Specific clientele) Establish that you are able to enter these markets and successfully compete.

Industry

What are the total sales in the industry or market? Provide a detailed breakdown of sales for the current year and for the past five years. (If applicable)

• Is the industry growing? What is the growth?
• What is the average profitability in the industry or market?
• What entry barriers exist?
• What do businesses have to do well to succeed in the industry or market?

Competitors

• Who are your major competitors?
• Who else competes for the dollars you are targeting? Remember that competitors are not always companies that do the exact same thing you do.
• What is their reputation? How does yours compare?
• What is their customer loyalty? How can you try for those customers?
• What is the quality of their products/services?
• How does their pricing compare with yours?
• How large is their market share?
• How do they market their business?
• Are they managed well?
• What tools do they use to run their business (equipment, materials, software, etc.?)
• What makes your product/service attractive and/or unique in comparison to the competition?

Customers/Target Market

• Who is your target market? Who are your customers? Where are they located?
• Do they expect to be able to find you/purchase your goods and /or services online?
• How price sensitive are they?
• How quality-conscious are they?
• What are your customers buying patterns?
• What are the customer needs satisfied through your product or service?
• Provide the number of your customer or active accounts?
• Provide the amount of accounts receivable due over 90 days?
• How many customers make up 80% of sales?
• Describe any special relationship you have with your customers.

Marketing and advertising strategy

• hould support your competitive strategy. List marketing goals, sales volume, number of new customers, repeat business.
• Communication strategy: How will you contact customers? Will you use direct marketing? Describe advertising campaign with spending budget (telemarketing, direct mail, special events, customer newsletters, web-site, emails, brochures, flyers, door to door, etc...
• How will you obtain new customers or get existing customers to come back and spend more money?
• What is your pricing strategy?

Operations Plan

• Describe how the business is run on a day-to-day basis
• What is the location of business?
• Is brick and mortar location of business important to customers?
• Is building accessible to customers?
• Is there available parking near the location?
• Is it near a freeway, downstairs?

Website

• If applicable, is the on-line location of your business important to customers?
• Is it easy to find (can they remember the name, does it show up on search engines, is it on marketing materials?
• Does it match your brick and mortar business?
• Is it user friendly?
• Search Engine optimization; who is doing this? What is their success rate with page one google.com?
• links, conversion rate, vertical marketing, industry submission

Management Information System

• What information do you need to conduct business? (Documentation, communication, records, payroll, financial information, reports)
• What system will you use to store, protect, share, and use this information?
• How will you use this information (customer information, history, financial?)
• How will you communicate with business partners, employees and customer?

Management and Organization

• State Owners names and addresses % of ownership
• Who manages the day to day operations?
• Include the business organizational structure. Provide the general responsibilities of each of the key people in the business and the hourly or annual salaries. List other personnel, titles, duties and general responsibilities, and salaries.
• What are the educational background, job experience and or other abilities relevant to the business for key personnel?
• List outside consultants, advisors (accountant, legal, banker, insurance agent, advisory board, or board of directors.
• Overall schedule, Start-up schedule, Hiring of additional people, salaries, wages, job descriptions
• Plans for new markets (products/services), Expansion into new territories, Moving to a new location for expansion

Critical Risks and problems

• Describe the three most critical risks in your business
• State how you would deal with each of these problems, should they occur

Business Financial History

• Provide the company's financial history and current conditions if you have an existing business
• Provide quarterly financial statements (balance sheet and P/L)
• Describe the aging of accounts receivable and accounts payable
• Describe the business accounting principles regarding depreciation, taxes.
• Provide business asset at cost and market value to secure loan request.
• Describe how your business record keeping will be handled on a day to day basis including accounting software to be utilized and whether you use or will use the services of a bookkeeper

Business Financial Plan

Give a description of the major conclusions of your company's four major financial statements if applying for a loan:

• Income statement
• Balance sheet
• Cash flow statement
• Break even analysis
• List all key assumptions used to calculate your projections. This is a complete description of anything that can influence financial projections.

Business Technology Plan

Describe how you will utilize computer hardware and software in your business

(Example)

• To cut costs
• To increase revenues
• To obtain more clients/customers

• How will the use of technology help you reach your business goals?
• What will it cost to implement the required computer hardware and software? What will it cost to maintain, upgrade and provide security for your system? How often will you need to update your hardware and software?
• If you have a website, how will it be developed and hosted? What are the costs associated with developing, hosting and maintaining the site?

Mission Statement

• Who we are
• What we do
• Whom we serve
• Statement draft