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PROFESSIONAL SERV

Business Plan
TABLE OF
CONTENTS
Introduction......................................................
1. Executive Summary..................................
2. Company Overview...................................
3. Business Description.................................
4. Market Analysis.........................................
5. Operating Plan........................................
6. Marketing and Sales Plan.......................
7. Financial Plan..........................................
Appendix........................................................
Instructions for Getting Started with
Estimated Start-Up Costs............................
Instructions for Getting Started on Profit
& Loss Projections.......................................

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Introduction

Creating an extensive business plan is unnecessary for most businesses to get started.
However, creating a short business plan offers several benefits that more than outweigh the
investment of time:
 The process of thinking and writing the plan provides clarity for the business.

 If capital is needed from outside sources, investors want to see a plan that demonstrates
a solid understanding and vision for the business.

 The plan will help prioritise tasks that are most important.

 With growth, the plan offers a common understanding of the vision to new leaders.

A simple business plan for a start-up service company can be completed rather quickly.
Keeping in mind who the intended audience is, write simply. The plan needs to be
understandable, readable, and realistic.
This template is organised into seven sub-plans or sections to be completed.
1. Executive Summary

2. Company Overview

3. Business Description

4. Market Analysis

5. Operating Plan

6. Marketing and Sales Plan

7. Financial Plan

It is recommended to complete the Executive Summary last, after all of the other sections
have been completed. As information is filled in, from the Company Overview to the
Financial Plan, the writing should tell the story of the motivation and vision behind the
business. Make sure to include what will make the business successful, how success will
be achieved, and how success will be measured.
It is important to keep the business plan updated in order to see progress, celebrate
success, and adjust where issues arise. This is best done on a quarterly, if not monthly,
basis.
1. EXECUTIVE SUMMARY

The Executive Summary should be written last

after the remainder of the plan has been finished. It is an

If the business requires outside investment or external investors, include how much is
needed, how it will be used, and how it will make the business more profitable. Think of this
section as the first thing a potential investor reads, thus, it must capture their interest
quickly.
Suggested headings to organise this business plan include the following.
 Opportunity: What problem will the business solve?

 Mission: What problem will the business solve?

 Solution: How will the service uniquely solve the problem identified?

 Market focus: What market and ideal customers will the business target?

 Competitive advantage:
How does the business intend to succeed against its competitors?

 Ownership: Who are the major stakeholders in the company?

 Expected returns:
What are the key milestones for revenue, profits, growth, and customers?
2. COMPANY OVERVIEW

The Company Overview is a brief summary of the intended business, including what it
uniquely delivers, the mission, how it got started, market positioning, operational structure,
and financial goals. After reviewing this section, the reader should have a broad
understanding of what the business is setting out to do and how it is organised.
This section is not meant to be lengthy. Keep it short and succinct. This is the snapshot of
the business. The type of business will determine what of the following sections will be
required for the business plan. Only include what is needed to properly represent the
business and remove anything else.
 Company summary:
This is the introductory section to the company, also known as the ‘elevator pitch’ o

 Mission statement:
This is a concise statement on the guiding principles of the company and what the comp

 Company history:
This provides the back story, especially the personal story, of why the business was fou

 Markets and services:

This outlines the target market and related needs that the company will address. In

 Operational structure:
This describes the operational details of the business. List any potential employees

 Financial goals:
This describes the start-up capital needed, projected revenue and profits, forecast, and bud
3. BUSINESS DESCRIPTION

This section will first frame the business opportunity and should answer the question: what
problem(s) is the company trying to solve? Use a case example to describe the customers’
pain point and how it is solved today. If the business’ service addresses something the
market has yet to identify as a problem (for instance, a new mobile app or a new clothing
line), then also describe how the business’ solution reduces stress, saves money, or brings
joy to the customer.
After framing the opportunity, describe the service in detail and how it is the solution the
business offers, how it solves that problem, and what benefits customers will receive.
This section also describes in more detail how the services will be rendered and the pricing
structure (e.g., fixed rate versus an hourly fee). Describe how the company plans to
differentiate from its competitors. What is the target market and how can the customer
capitalize on your unique offering?
Depending on the type of business, the following sections may or may not be necessary.
Only include relevant sections and remove everything else.
 Opportunity:

Describe the current market for the business’ offered service. At a high level, what is the mar

 Product overview:
Describe the service offerings of the business in as much detail as possible. If it is effec

 Key participants:
Identify any strategic partners in the business, such as critical suppliers, distributors, refe

 Pricing:
Provide pricing of the service, gross margin projects, and upgrade paths. Describe why the compan

o Note the difference between working hours and billable hours. All working hours are
not billable. If the business has employees with differing skill levels (for example, in a
law practice, there are associates, paralegals, lawyers, partners, etc.), indicate the
various billing rates.
o Communicate rates clearly to clients and customers. If there are potential additional
fees which will be passed on to clients or customers, define and establish them up
front.
4. MARKET ANALYSIS

The Market Analysis provides the reader with an understanding of how well the business
knows and understands its market and if it is big enough to support the business objectives.
This section provides an overview of the industry that the business will participate in. As this
section is narrowed down to the ideal customer based on the business strategy, the plan
will define the target market. A detailed description and sizing of the target market will help
the reader understand the market value the business is pursuing (the number of potential
customers multiplied by the average revenue for the product or service).
In defining the target market, the plan will identify key elements such as geographic
location, demographics, buyer characteristics, the target market's needs, and how market
needs are currently being met. If there are any direct competitors, explain how the
company’s service compares to the competitors in terms of solving the consumers’
problems.
This section may also include a Strengths, Weaknesses, Opportunities, and Threats
(SWOT) Analysis as necessary, to better assess the business’ position against the
competition.
Depending on the type of business, the following sections may or may not be necessary.
Only include what is need and remove everything else.
 Industry type:

Begin with the broader descriptions of the market opportunity. For instance, if the intended

 Market segmentation:

This section defines the main market segments and those the business is targeting n

 Competition:
All businesses compete in one way or another. It may be with specific, direct competitors or
 SWOT analysis:

A SWOT analysis may be included by completing the boxes below to assess the business

STRENGTHS WEAKNESSES
 Advantage  Disadvantages
 Capabilities  Gap in capabilities
 Assets, people  Cash flow
 Experience  Suppliers
 Financial reserves  Experience
 Value proposition  Areas to improve
 Price, value, quality  Causes of lost sales

SWOT
OPPORTUNITIES THREATS
 Areas to improve  Economy movement
 New segments  Obstacles faced
 Industry trends  Competitor actions
 New products  Political impacts
 New innovations
 Key partnership  Environmental effects
 Loss of key staff
 Market demand
5. OPERATING PLAN

Additionally, it is necessary to outline how the company currently and will continue to
develop and maintain a loyal customer base. This section includes management
responsibilities with dates and budgets and making sure results can be tracked. What are
the envisioned phases for future growth and the capabilities that need to be in place to
realise growth?
The operating plan describes how the business works. Depending on the type of the
business, important elements of this plan should include how the company will bring
services to market and how it will support customers. It is the logistics, technology, and
basic blocking and tackling of the business.
Depending on the type of business, the following sections may or may not be necessary.
Only include what is needed and remove everything else. Remember: try to keep the
business plan as short as possible. Excessive detail in this section could easily make the
plan too long.
 Order fulfilment:
Describe the company’s procedures for delivering services to its customers. As a service

 Payment:
Describe the standard payment terms and the payment methods accepted. Describe the pricing pla

 Technology:

If technology is critical to the business, whether it is part of the service offering or is fundamental

 Key customers:
Identify any customers that are important to the success of the business due to a partnersh

 Key employees and organisation:

Describe unique skills or experiences that are required of the current

 Facilities:
As a home-based business, be educated on legalities and tax filings for such business types.
6. MARKETING AND SALES PLAN

Promoting the business, whether through generating leads or traffic to a website or store, is
one of the most important functions of any business. In this section of the plan, provide
details of intended marketing of the business. Describe the key messages and channels
used for generating leads and promoting the business. This section should also describe
any sales strategy. Depending on the type of business, the following sections may or may
not be necessary. Only include what is needed and remove everything else.
 Key messages:
Describe the key messages that will elevate services in the target customers’ eyes. If there is sa

 Marketing activities:
Which of the following promotion options provide the company the best chance of p

o Media advertising (newspaper, magazine, television, radio)

o Direct mail
o Telephone solicitation
o Seminars or business conferences
o Joint advertising with other companies
o Word of mouth or fixed signage
o Digital marketing such as social media, email marketing, or SEO
 Sales strategy:
If needed, what will be the sales approach? Will there be full-time commissioned sales peo
7. FINANCIAL PLAN

Creating a financial plan is where all of the business planning comes together. Up to this
point, the target market, target customers, and pricing have all been identified. These items,
along with assumptions, will help estimate the company’s sales forecast. The other side of
the business will be what expenses are expected. This is important on an on-going basis to
see when the business is profitable. It is also important to know what expenses will need to
be funded before customer sales, or the cash they generate, is received.
At a minimum, this section should include estimated start-up costs and projected profit and
loss, along with a summary of the assumptions being made with these projections.
Assumptions should include initial and on-going sales, along with the timing of these
inflows.
 Projected start-up costs:

The table below shows a sample of on-going and one-time cost items that the b
START-UP COSTS
Your Home-Based Agency January 1, 2018
COST ITEMS MONTHS COST/MONTH ONE-OFF COST TOTAL COST
Advertising/Marketing 3 £300 £2,000 $2,900
Employee Salaries* 4 £500 $2 $2,002
Employee payroll taxes and benefits 4 £100 £1,500 $1,600
Rent/Lease payments/Utilities 4 £750 £2,500 $5,500
Postage/Shipping 1 £25 £25 £50
Communication/Telephone 4 $70 $280 $560
Computer equipment £0 £1,500 £1,500
Computer software £0 £300 £300
Insurance £0 $60 $60
Interest expense £0 £0 £0
Bank service charges £0 £0 £0
Supplies £0 £0 £0
Travel & entertainment £0 £0 £0
Equipment £0 £2,500 £2,500
Furniture & fixtures £0 £0 £0
Leasehold improvements £0 £0 £0
Security deposit(s) £0 £0 £0
Business licences/Permits/Fees £0 £5,000 £5,000
Professional Services - Legal, Accounting £0 £1,500 £1,500
Consultant(s) £0 £0 £0
Inventory £0 £0 £0
Cash on hand (working capital) £0 £1,000 £1,000
Miscellaneous £0 £2,000 £2,000
ESTIMATED START-UP BUDGET $26,472
*Based on part-time employees. This may change once you hit your growth benchmark.

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Projected profit and loss model:

The model below shows a sample of the projections a small business is forecasting for their first 12 months of operations. Th

START-UP COSTS
Your Home-Based Agency January 1, 2018
INCOME JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
Estimated Sales £5,000 $13,000 £16,000 £7,000 $14,500 $16,400 $22,500 $23,125 $24,549 £22,000 £25,000 $27,349 $216,423
Less sales returns & discounts£0 ($350) £0 ($206) ($234) £0 £0 ($280) ($1,200) ($1,600) £0 ($2,400) ($6,270)
Service revenue £0 £0 £0 £0 £0 $250 $350 £100 £0 £0 $1,245 $1,360 $3,305
Other revenue £0 £0 £0 £0 £0 £0 £0 £1,500 £0 £0 £0 £0 £1,500
Net sales £5,000 $12,650 £16,000 $6,794 $14,266 $16,650 $22,850 $24,445 $23,349 $20,400 $26,245 $26,309 $214,958
Cost of Goods Sold* £2,000 $5,200 $6,400 $2,800 $5,800 $6,560 $9,000 $9,250 $9,820 $8,800 £10,000 $10,940 $86,569
Gross profit $3,000 $7,450 $9,600 $3,994 $8,466 $10,090 $13,850 $15,195 $13,529 $11,600 $16,245 $15,369 $128,389
Expenses JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
Salaries & wages £2,500 £2,500 $3,500 £5,000 £5,000 £5,000 $8,000 $9,000 $9,000 $9,000 $9,000 $9,000 $76,500
Marketing/Advertising $400 $450 $450 $450 $900 $900 $900 $900 $900 $900 £1,200 £1,200 $9,550
Sales commissions $250 $650 $800 $350 $725 $820 $1,125 $1,156 $1,227 $1,100 $1,250 $1,367 $10,821
Rent $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,125 $1,125 $1,125 $1,125 $1,125 $1,125 £15,000
Utilities $250 $150 £200 £200 £200 $250 $250 $250 £200 £200 $250 $250 $2,650
Website expenses $175 $175 $175 $175 $175 $175 $175 $175 $175 $175 $225 $225 $2,200
Internet/Phone $110 $110 $110 $110 $110 $110 $110 $110 $110 $110 $110 $110 $1,320
Insurance $165 $165 $165 $165 $165 $165 $165 $165 $165 $165 $165 $165 $1,980
Travel £100 £0 £0 $250 £0 £0 £0 £0 $675 $800 £0 £0 $1,825
Legal/accounting £1,200 £0 £0 $450 £0 £500 £0 £0 £0 £0 £0 $250 $2,400
Office supplies $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 £1,500
Interest expense £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0
Total expenses $6,525 $5,575 $6,775 $8,525 $8,650 $9,295 $12,100 $13,131 $13,827 $13,825 $13,575 $13,942 $125,746
Income before taxes ($3,525) $1,875 $2,825 ($4,531) ($184) $795 $1,750 $2,064 ($298) ($2,225) $2,670 $1,427 $2,643
Income tax expense ($529) $281 $424 ($680) ($28) $119 $263 $310 ($45) ($334) $401 $214 $396
NET INCOME ($2,996) $1,594 $2,401 ($3,851) ($156) $676 $1,488 $1,754 ($253) ($1,891) $2,270 $1,213 $2,246
*In the service industry, Cost of Goods Sold is the monetised value of the time spent on the client.

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APPENDIX

START-UP COSTS

Home-Based Agency Date

COST ITEMS MONTHS COST/MONTH ONE-OFF COST TOTAL COST

Advertising/Marketing

Employee salaries

Employee payroll taxes and benefits

Rent/Lease payments/Utilities

Postage/Shipping

Communication/Telephone

Computer equipment

Computer software

Insurance

Interest expense

Bank service charges

Supplies

Travel & entertainment

Equipment

Furniture & fixtures

Leasehold improvements

Security deposit(s)

Business licences/Permits/Fees

Professional Services - Legal, Accounting

Consultant(s)

Inventory

Cash on hand (working capital)

Miscellaneous

ESTIMATED START-UP BUDGET

Instructions for Getting Started with
Estimated Start-Up Costs
Determining a business' start-up costs is critical to ensure enough cash is available to begin
business operations within the budgeted time frame, as well as within the cost budget.
Start-up costs typically fall within two categories: monthly costs and one-time costs. Monthly
costs cover costs that occur each month during the start-up period, and one-time costs are
costs that will be incurred once during the start-up period.
Steps for preparation:
 Step 1: Enter the company name and the date this estimate is being prepared.

 Step 2:
Enter the number of months and the monthly cost for each cost item that is recurring. For one-off co

 Step 3:
Once all of the costs are entered, review the individual items and total amount to see where the budg
 START-UP COSTS
Home-Based Agency Date
INCOME JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
Estimated product sales
Less sales returns & discounts
Service revenue
Other revenue
Net sales
Cost of Goods Sold
Gross profit
EXPENSES JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
Salaries & wages
Marketing/Advertising
Sales commissions
Rent
Utilities
Website expenses
Internet/Phone
Insurance
Travel
Legal/Accounting
Office supplies
Interest expense
Other 1
Total expenses
Income before taxes
Income tax expense
NET INCOME
* In the service industry, Cost of Goods Sold is the monetised value of the time spent on the client.

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Instructions for Getting Started on Profit &
Loss Projections
Completing projections for Profit and Loss of a new company is a good exercise to
understand and communicate when the company will begin to break even and see how
sales and profits will grow. The top portion of the model to the left, Revenue, is a good way
to forecast sales, month by month for the first year. The lower portion then applies
estimated expenses for the same period of time to derive the business’ profitability.
Steps for preparation:
 Step 1: Enter the company name and the date this projection is being prepared.

 Step 2:

For each month, beginning in January or whenever the start is estimated, enter the expected sales to

 Step 3:
For each month, enter the estimated salaries, marketing, utilities, and other items that are projected.

 Step 4:
Once all of the costs have been entered, review the individual items and total amount to see where p