McDonald & Co Accountants

Bob Mcdonald CMA,ISP

15736 100 Ave N.W. Edmonton, Alberta Canada T5P 0L1
Fax (780)486-4393 -------- Phone (780)484-1133

Small Business Startup Info :
Developing a WRITTEN Business Plan :

The following outline describes the development of a business plan.
You should adapt it to your specific situation.

By now you should have prepared the preliminary information you need to complete the plan. You should also have selected an accountant and had a preliminary meeting wih him/her to discuss your business intentions. Often a first consultation can be obtained FREE and this can help you avoid many pitfalls.

Go to McDonald & Co. Accountants - Small Business Services

The Written Business Plan

Introduction

  1. Give a detailed description of the business and its goals.

  2. Discuss the ownership of the business and the legal structure
  3. List the skills and experience you bring to the business
  4. Discuss the advantages your business will have over its competitors

    5. Marketing Plans

    1. Discuss the products/services you intend to offer

    2. Identify the customer demand for your product/service
    3. Identify your market, its size and location
    4. Explain how your product/service will be advertised and marketed
      (Watch for No-Cost/Lo-Cost opportunities)
    5. Explain your pricing strategy

    Financial Management

    1. Explain your source and the amount of your initial investment

    2. Explain your source and the amount of outside financing & any restrictions imposed
    3. Develop a monthly operating budget for the first year
    4. Develop an expected return on investment, or ROI, and monthly cash flow for the first year
    5. Provide projected income statements and balance sheets for a two-year period
    6. Discuss your break-even point
    7. Explain your personal method of compensation
    8. Discuss who will maintain your accounting records and how they will be kept
    9. Provide "what if"statements that address alternative approaches to any problem that may develop

    Operations

    1. Explain how the business will be managed on a day-to-day basis

    2. Discuss hiring and personnel procedures (Contact Provincial Industrial Relations) if you will need employees
    3. Discuss insurance, lease or rent agreements, and issues pertinent to your business
    4. Account for the equipment necessary to produce your products or services and how it will be obatined and financed.
    5. 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.
    Even though you believe you can succeed you must convince others you have the ability to do so

    Once you have completed your business plan, review it with your accountant.
    When you feel comfortable with the content and structure, make an appointment to review and discuss it with your banker. The business plan is a flexible document that should change as your business grows.

    For More Information

    Knowledge is the key to success in all that you do. Make use of all your available resources, so you are prepared for any unexpected challenge. Other sources of information include:

    1. Professional, small business or industrial associations

    2. Local Public Library
    3. Bookstores for "How to books" on your specific business OR on Marketing
    4. Across Canada - Business Development Bank of Canada
    5. Local Chamber of commerce
    6. Local colleges and universities
    7. Alberta Economic Developmet
    8. Manufacturers and suppliers of your intended products
    9. Professional, small business or industrial associations

      10. The preceding information is for educational purposes only.
      As it is impossible to include all situations, circumstances and exceptions in a newsletter such as this,
      a further review should be done by a qualified professional.
      Although every reasonable effort has been made to insure the accuracy of the information
      contained in this, letter, no individual or organization involved in either the
      preparation or distribution of this letter accepts any contractual, tortious,
      or any other form of liability for its contents or for any consequences arising from its use.

      Who do I contact in Edmonton, Alberta

      McDonald & Co. Accountants - Preliminary Considerations - Business Startup

      McDonald & Co. Accountants - Small Business Startup Info :

      Page maintained by R McDonald, bob@rmcdonald.com Copyright(c) 1997.
      Created: 01/07/97 at 5:13:46 AM Updated: 9/12/2004 at 7:52:07 AM