Your First Plan

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Quick Start YOUR BUSINESS

Your First Business Plan
5TH EDITION
A simple questionand-answer format designed to help you write your own plan
Researching your plan Knowing how to begin Knowing what to put in and keep out Writing a mission statement Naming your business Creating an executive summary

business leaders
have used Your First Business Plan to write their own plan!

100,000More than

Calculating and presenting important financial data Understanding your unique product or service Using your plan to develop your business Presenting your plan to investors

JOSEPH COVELLO AND BRIAN HAZELGREN

Your First

Business Plan

Your First

Business Plan
5TH EDITION

A simple question-and-answer format designed to help you write your own plan
Joseph Covello andBrian Hazelgren

Copyright © 1993, 1995, 1998, 2002, 2005 by Joseph Covello and Brian Hazelgren Cover and internal design © 2005 by Sourcebooks, Inc. Sourcebooks and the colophon are registered trademarks of Sourcebooks, Inc. All rights reserved. No part of this book may be reproduced in any form or by any electronic or mechanical means including information storage and retrieval systems—exceptin the case of brief quotations embodied in critical articles or reviews, or in the case of the exercises in this book solely for the personal use of the purchaser—without permission in writing from its publisher, Sourcebooks, Inc. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that thepublisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. —From a Declaration of Principles Jointly Adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations

Published by: Sourcebooks, Inc. P.O. Box 4410,Naperville, Illinois, 60567-4410 (630) 961-3900 Fax: (630) 961-2168 www.sourcebooks.com

Library of Congress Cataloging-in-Publication Data Covello, Joseph A. Your first business plan: a simple question and answer format designed to help you write a plan / by Joseph Covello and Brian Hazelgren.—5th ed. p. cm.Includes index. ISBN 978-1-4022-2034-0 1-4022-0412-4 1. Business planning. 2. Newbusiness enterprises—Planning. 3. Small business— Planning. I. Hazelgren, Brian J. II. Title. HD30.28 .C6967 2002 658.4’012—dc21 2002009773 Printed and bound in the United States of America VHG 10 9 8 7 6 5 4 3 2 1

Contents
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vi CHAPTER 1: Powerful Guidelines to Writing Your First BusinessPlan . . . . . . . . . . . . . . . . . . . . . . . 1 • A few facts about business planning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 • Consider a start-up’s impact on your life . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 • The nuts and bolts of a business plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 • Focus on your Unique SellingProposition (USP). . . . . . . . . . . . . . . . . . . . . 15 CHAPTER 2: The First Pages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 • Cover sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 • Table of contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 • Executivesummary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 CHAPTER 3: General Company Description . . . . . . . . . . . . . . . . . . . . . . . .23 • Context of your business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 • Profile of your business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....
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