Business Plan Checklist

Key Questions to Answer

Organization
Executive Summary  Who will manage the business?
 Why will the business succeed?  What qualifications do you have?
 What do you want to start (or change)?  How many employees will you need?
 How much money is required?  How will you structure your organization?
 Why is the venture a good risk?  What are your plans for employee salaries, wages
and benefits?
Business Description  What consultants or specialists will you need?
 What type of business are you planning? How will you use them?
 What products or services will you sell?  What legal form or ownership will you choose?
 What type of opportunity is it (new, part-time, Why?
expansion, seasonal, year-round)?  What licenses and permits will you need?
 Why does it promise to be successful?
 What is the growth potential? Critical Risks
 How is it unique?  What potential problems could arise?
 How likely are they?
Marketing  How do you plan to manage these potential
 Who are your potential customers? problems?
 How large is the market?
 Who are your competitors? How are their Financial
businesses positioned?  What is your total estimated business income for
 How will you price the product or service? the first year? Monthly for the first year?
 What advertising and promotional strategies will Quarterly for the second and third years?
you use?  What will it cost you to open (expand) the
business?
Research, Design, and Development  What will your personal monthly financial needs
 Have you carefully described your design or be?
development?  What sales volume will you need in order to make
 What technical assistance have you received? a profit during the first three years?
 What development needs do you anticipate?  What will be the break-even point?
 What are the costs of development?  What will be your projected assets, liabilities, and
net worth on the day before you expect to open?
Manufacturing/Operations  What are your total financial needs?
 Where will the business be located? Why?  What are your potential funding sources? How
 What are your facilities needs? will you spend it?
 What are your equipment needs?  How will the loans be secured?
 Are there other needs for production?
 What activities are required to produce your Milestone Schedule
product or service?  What timing have you projected for this project?
 Who will be your suppliers?  How have you set your objectives?
 What type of transportation is available?  Have you set up your deadlines for each stage of
 What is the supply of available labor? your venture?
 What will it cost to produce your product or  Is there a relationship between events in this
service? Per unit? venture?

Appendix
 Have you included all important documents,
drawings, agreements, and references?
Demystifying the Business Plan Process: An Introductory Guide
Donald F. Kuratko, Ph.D.
Small Business Forum, Winter 1990
Business Plan Checklist

m:\common\sbdc\forms\busplanchecklist

1
 BALANCE SHEET
(Date)

Current Assets

Cash $________
Accounts Receivable $________
Inventory $________
Supplies $________
Prepaid Expenses (insurance) $________
Other Currents $________

Long-term Assets

Land/Buildings $________
Equipment $________
Machinery
Furniture & Fixtures $________
Other Long-term Assets (less depreciation) $________

TOTAL ASSETS $________

Current Liabilities

Accounts Payable $________

Salaries Payable $________
Taxes Payable $________
Interest Payable $________
Notes Payable (due within 12 months) $________
Other Current Liabilities $________

Long-term Liabilities

Notes Payable to Stockholders $________

Mortgage Notes Payable $________
Other Long-term Liabilities $________

TOTAL LIABILITIES $________

Owner's Net Worth

Invested $________
Retained Earnings $________
Drawing $________

TOTAL NET WORTH $________

TOTAL LIABILITIES AND NET WORTH $________

Assets = Liabilities + Net Worth

 Projected Income Statement: Year 1 (By Month) and Changes to Cash
Yearly
1 2 3 4 5 6 7 8 9 10 11 12 Total
Income
Sales
<Less Cost of Goods>*
Gross Profit
Operating Expenses
Salary/Wages
Payroll Taxes
Employee Benefits
Rent
Telephone
Utilities
Car/Delivery
Supplies
Marketing
Legal/Accounting
Insurance
Property Tax
Interest
Other
Depreciation*
Total Operating Expenses
Net Profit Before Income
Tax

Changes to Cash
Less Soc Sec & Income Tax
Less Principal on Loan
Less Owner’s Draw (take
home)
Plus Depreciation
Total Changes to Cash
*Cost of Goods: Costs associated with the units sold such as cost of inventory, raw material, shipping, storage, packaging and production-related labor.
*Depreciation: For tax purposes, an allowable deduction made for a loss in assets’ value (wear, age).
Sources and Uses Statement

Sources of Financing

Investment of cash by owner #1 $________________

Investment of cash by owner #2 $________________

Investment of non-cash assets by owner #1 $________________

Investment of non-cash assets by owner #2 $________________

Bank loans to business (short term) $________________

Bank loans to business (long term) $________________

Bank loans (personal) $________________

Small Business Administration loans $________________

Other: ________________________________

Total Sources of Financing $________________

Uses of Financing

Land $________________

Buildings $________________

Equipment $________________

Remodeling $________________

Initial inventory $________________

Working capital to pay operating expenses $________________

Non-cash assets contributed by owners $________________

(Use same amount as in Sources)

Other assets: _____________________________

Total Uses of Financing $________________