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The Ernst & Young Business Plan Guide, Third Edition

Book Description

In today's competitive business environment, a well thought out business plan is more important than ever before. Not only can it assist you in raising the money needed to start or expand a business-by attracting the interest of potential investors-but it can also help you keep tabs on your progress once the business is up and running.

Completely revised and updated to reflect today's dynamic business environment, The Ernst & Young Business Plan Guide, Third Edition leads you carefully through every aspect involved in researching, writing, and presenting a winning business plan. Illustrating each step of this process with realistic examples, this book goes far beyond simply discussing what a business plan is. It explains why certain information is required, how it may best be presented, and what you should be aware of as both a preparer and reviewer of such a proposal.

Divided into three comprehensive parts, The Ernst & Young Business Plan Guide, Third Edition outlines the essential elements of this discipline in a straightforward and accessible manner. Whether you're considering starting, expanding, or acquiring a business, the information found within these pages will enhance your chances of success.

* Advice on how to write and develop business plans

A realistic sample plan

All new sections on funding and financing methodswith provisions for restructuring and bankruptcy

Tips for tailoring plans to the decision makers

Table of Contents

  1. Copyright
  2. Acknowledgments
    1. Special Thanks
  3. Preface
  4. A Dedication to Entrepreneurship and the Entrepreneurs of America
  5. About the Authors
  6. About Ernst & Young’s Strategic Growth Markets Practice
    1. Quality in Everything We Do
    2. Services Offered
    3. Culture
  7. The Ernst & Young Entrepreneur of the Year Program
    1. Who Is Eligible?
  8. I. The Purpose of a Business Plan
    1. One. The Business Plan
      1. Planning Needs to be Dynamic
      2. Looking Forward—The Business Plan as a Planning Document
      3. Succeeding by Succeeding, Succeeding by not Failing
      4. Looking Backward—The Business Plan as a Yardstick
      5. Raising Cash—The Business Plan as a Financing Tool
      6. The Business Plan—A More Generalized Tool
      7. Using Professionals
      8. The Role of the Plan in Raising Money
    2. Two. Who Reads the Business Plan?
      1. Terms of Debt
        1. Repayment Period
        2. Rates
      2. Investors
        1. The Venture Capital Fund
        2. Other Financing Sources
          1. Self, Family, and Friends
          2. “Angels”
          3. Vendors
          4. Corporate Venture Capitalists
          5. Ad Hoc Venture Pools
    3. Three. Legal Forms of a Business: Focusing on the Need for Protection, Simplicity, and Taxation
      1. Major Variables
        1. Liability
        2. Control
        3. Ease of Admitting New Investors
        4. Taxes
          1. Sole Proprietorships
          2. Limited Liability Companies
          3. Partnerships
          4. S Corporations
          5. C Corporations
      2. A Few Words About Buying a Company
    4. Four. Due Diligence: Think Like the Pros
      1. Risk Inventory
      2. Transaction Risk
      3. The Transaction Scorecard
  9. II. An In-Depth Look at a Business Plan
    1. Five. Contents
      1. I. Good Foods, Incorporated Business Plan
    2. Six. Executive Summary
      1. Comment: Executive Summary
    3. Seven. General Company Description
      1. Comment: General Company Description
    4. Eight. Products and Services
      1. Comment: Products and Services
    5. Nine. Marketing Plan
      1. Market Definition and Opportunity
      2. Comment: Market Definition and Opportunity
      3. Competition and Other Influences
        1. Degree of Competition
        2. Future Sources of Competition
        3. Other Influences
      4. Comment: Competition and Other Influences
      5. Marketing Strategy
        1. Sales and Distribution Strategy
        2. Pricing Strategy
        3. Advertising, Public Relations, and Promotion
        4. Site Analysis
        5. Related Budgets
        6. Future Marketing Activities
      6. Comment: Marketing Strategy
      7. Market Research
      8. Comment: Market Research
      9. Sales Forecasts
        1. Sales by Period
        2. Sales by Product or Service
        3. Sales by Customer Group
        4. Market Share
      10. Support Material
    6. Ten. Operational Plan
      1. Product Development
      2. Comment: Product Development
      3. Manufacturing
      4. Comment: Manufacturing
      5. Service and Support
      6. Comment: Service and Support
      7. Other Influences
        1. Productive Resources
        2. Changing Technology
        3. Customers
        4. Regulation
      8. Comment: Other Influences
      9. Protections
        1. What Is Being Protected
        2. Impact of Protection
        3. Documentation
      10. Comment: Protections
    7. Eleven. Management and Organization
      1. Management Team/Principals
        1. Succession Planning
      2. Comment: Management
      3. Organizational Chart
      4. Comment: Organizational Chart
      5. Policy and Strategy
      6. Comment: Hiring and Salary
    8. Twelve. Major Milestones
      1. Comment: Major Milestones
    9. Thirteen. Structure and Capitalization
      1. Structuring the Deal
      2. Capital Requirements
      3. Sources of Capital
      4. Comment: Structure and Capitalization
    10. Fourteen. Financial Plan
      1. Notes and Assumptions for Financial Projections
      2. Income Statements
      3. Summary of Historical Financial Data and Estimated Balance Sheet
      4. Cash Flow Statement
      5. Balance Sheet and Financial Ratios and Statistics
      6. Break-Even Analysis
      7. Product- and Service-Specific Financial Summaries
      8. Comment: Financial Plan
    11. Fifteen. Confidentiality Agreements
    12. Sixteen. Further Considerations
      1. People
      2. Money
      3. Cashing Out
      4. Women and Minorities
  10. III. Other Resources for Entrepreneurs
    1. Seventeen. Resources for Entrepreneurs
    2. Eighteen. Conclusion