Western Dairyland encourages entrepreneurs to be thorough in preparing to start their businesses, and we offer extensive training on creating a business plan. A business plan is like a road map designed to guide entrepreneurs through the many hazards of starting a business. It will include sections on business type, legal structure, business products/services, and marketing. Working out the business on paper without financial risk will answer many of the questions you may have about entrepreneurship. Also, entrepreneurs who have completed business plans make better loan candidates. Western Dairyland's business plan narrative outline contains six main components. Attend one of our monthly business plan trainings for help getting started with composing your own business plan.
- Name of Business
- Your Name
- Telephone Number
- Outline a brief statement of the principles and goals of your business.
Description of the Business
- Describe the business you want to start.
- Are there any zoning constraints, licenses or permits to consider?
- How will your business be legally structured?
- What insurance will you carry?
- A chronological check-off of key tasks.
Background & Resume
- What experience or training have you had for this business?
- Resume - Informational statement including education, training, and work experience.
- What plans do you have for expansion or growth?
- Who are your customers, where will they come from?
- What is the product/service you will be selling?
- How will you price your product/service?
- Investigate your industry.
- Are there any trends changes or local issues affecting the market?
- Where will you purchase your supplies?
- How much will supplies cost?
- How dependable is the service?
- Who are your competitors?
- Analyze how you will compete.
- How will you promote your business?
- What will your advertising budget be?
Potential Risks and Problems
- Evaluate the risks and problems.
- After analyzing the risks & your business, is there a demand for your business/service?
Cost of Goods Sold
- What is the total cost of your product including materials, labor to produce, and overhead for each unit of product/service?
Break Even Analysis
- How many units of product/service will you need to sell each month just to break even?
- What additional products/service can you sell to decrease the intended sales of one item to break even?
Sources and Uses of Funds
- Identify exactly what you will need to start the business.
- List the owners complete investment to start the business.
Personal Financial Statement
- Summarize the owners’ personal finances including personal credit report. Include an explanation of any identified credit problems.
- Prepare an estimated monthly budget for the business using the information previously determined.
Three Year Cash Flow Statement
- A “best estimate” of cash needed to operate for each month of the first year and annually for year 2 & 3.
- Debt service and personal draw calculations.
- Verify your intent to implement the business.
- A complete analysis of the business.