Legal structure
- Describe the legal structure of the business. The structure
of your business will depend on the type of business, the kind of
products or services you will offer, as well as tax implications.
An attorney and an accountant can help guide you in your decisions.
Questions to answer:
- Will your business
be a sole proprietorship, partnership or a corporation
- Why did you choose
the structure you did?
Business
description - If
you have purchased an existing business, this section should include
an overview of the track record of the business. If you are creating
the business, you will give projections for growth and explain why
you believe that growth will occur with the products or services
offered.Questions to answer: If you have purchased an existing business:
- Is there history to
this business?
- What is the present
status of the business?
- What are your projections
for future growth?
- What are the products
or services of the business? (List them only)
- Why do you believe
there is a market for these products or services?
- How will you operate
the business in the next two years?
If you are creating a
new business:
- What are the products
or services of the business? (List them only)
- Why do you believe
there is a market for these products?
- How do you intend
to set up the operation of the business?
- What kind of growth
are you predicting? Gradual or rapid?
Products or services
description - This section is the detailed description of the
products or services your business will offer as well as the products
or services which will be introduced in the future. Describe your
products from raw materials to finished product. If you will offer
a service, tell what it is, how it is provided, what research or
development will be done and why it is unique. Questions to answer:
- What are the features
and benefits of the products or service?
- Why is your product
or service unique?
- What does it take
to produce your product or service? Raw materials, equipment,
skilled employees?
- How will your product
be produced? or How will your service be delivered to the customer?
- How do your products
or services compare to those of the competition?
- Are you planning to
provide future products or services? What are they? When do you
plan to add them to the business?
Location - The
location of your business will depend upon what kinds of products
or services you will provide, what kind and amount of space needed,
and what impact the location may have on marketing, production or
distribution of your product. Questions to answer:
- Where is the business
located?
- Why did you choose
that location?
- How will the location
of the business impact your marketing?
- Are there special
building needs for the business?
Management - The
section will describe the management philosophy you will use to
run your business. It will indicate who will lead the business.
You should describe the credentials and qualifications of the people
who will be managing and directing your business. Questions to answer:
- How will you manage
the business?
- How will you plan
and measure progress?
- What management philosophies
will be used?
- Who will be managing
the business?
- What are the responsibilities
of each manager?
- Why are the managers
qualified? What abilities and experiences do they have?
Human Resources -
The effective use of a business's human resources of the business
will be important to the success of the business. This section will
describe your plans to hire employees, what they will do and what
skills they will need. Questions to answer:
- How many employees
will be needed to do the work?
- What kinds of skills
and qualifications will the employees need?
- What will be the responsibilities
of each employee?
- What will be the wages
and benefits of each employee?
Information systems
and recordkeeping - Information systems are important for tracking
business progress, keeping effective records and analyzing business
decisions. This section will describe what information will be important
to record and monitor, and how you intend to do that. Questions
to answer:
- What kind of information
will you track in the business?
- How will you keep
track of the information?
- How will you use the
information to analyze the progress of the business?
- What accounting system
will you use? Cash or accrual?
- Who will do the accounting?
Will it be done inside the business or will you contract an outside
accountant?
Special needs of the
business - Each business is as
unique as the entrepreneur who creates it. Each business has special
needs and requirements depending on the products or services provided.
Indicate in this section any special needs your business will require
and how you intend to take care of them. Questions to answer:
- Will you need a patent
or copyright? Have you applied for it?
- Will you need special
licenses or permits?
- How will you ensure
the security of the business?
- What kind of insurance
will you need to protect the business?
- Are there any other
special needs for the business?
- If so, how to you
intend to take care of them?
