[YOUR COMPANY NAME]

[INSERT IMAGE/LOGO]

[YOUR NAME] – [YOUR TITLE]

[YOUR ADDRESS]

[YOUR CITY], [YOUR STATE/PROVINCE] [YOUR ZIP/POSTAL CODE]

Tel. [YOUR PHONE NUMBER]

Fax: [YOUR FAX NUMBER]

Email: [YOUR EMAIL@YOURCOMPANY.COM]

BUSINESS PLAN

Confidentiality Agreement

The undersigned reader acknowledges that the information provided by [YOUR COMPANY NAME] in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of [YOUR COMPANY NAME].

It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader may cause serious harm or damage to [YOUR COMPANY NAME].

Upon request, this document is to be immediately returned to [YOUR COMPANY NAME].

___________________

Signature

___________________

Name (typed or printed)

___________________

Date

This is a business plan. It does not imply an offering of securities.

1.0 Executive Summary

1

Chart: Highlights

2

1.1 Objectives

2

1.2 Mission

2

1.3 Keys to Success

3

2.0 Company Summary

3

2.1 Company Ownership

3

2.2 Company History

3

Table: Past Performance

4

Chart: Past Performance

5

3.0 Services

5

4.0 Market Analysis Summary

6

4.1 Market Segmentation

6

Table: Market Analysis

7

Chart: Market Analysis (Pie)

8

4.2 Target Market Segment Strategy

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4.3 Service Business Analysis

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4.3.1 Competition and Buying Patterns

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5.0 Strategy and Implementation Summary

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5.1 SWOT Analysis

9

5.1.1 Strengths

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5.1.2 Weaknesses

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5.1.3 Opportunities

10

5.1.4 Threats

10

5.2 Competitive Edge

10

5.3 Marketing Strategy

10

5.4 Sales Strategy

11

5.4.1 Sales Forecast

11

Table: Sales Forecast

12

Chart: Sales Monthly

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Chart: Sales by Year

13

5.5 Milestones

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Table: Milestones

14

Chart: Milestones

15

6.0 Management Summary

15

6.1 Personnel Plan

15

Table: Personnel

16

7.0 Financial Plan

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7.1 Important Assumptions

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7.2 Break-even Analysis

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Table: Break-even Analysis

17

Chart: Break-even Analysis

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7.3 Projected Profit and Loss

17

Table: Profit and Loss

18

Chart: Profit Monthly

19

Chart: Profit Yearly

19

Chart: Gross Margin Monthly

20

Chart: Gross Margin Yearly

20

7.4 Projected Cash Flow

21

Table: Cash Flow

21

Chart: Cash

22

7.5 Projected Balance Sheet

22

Table: Balance Sheet

23

7.6 Business Ratios

23

Table: Ratios

24

Table: Sales Forecast

1

Table: Personnel

2

Table: Personnel

2

Table: Profit and Loss

3

Table: Profit and Loss

3

Table: Cash Flow

4

Table: Cash Flow

4

Table: Balance Sheet

5

Table: Balance Sheet

5

1.0 Executive Summary

[YOUR COMPANY NAME] is a successful accounting and tax preparation service owned and supervised by [YOUR NAME] in [YOUR CITY], [YOUR STATE/PROVINCE]. The firm offers tax preparation and planning, accounting, payroll, unemployment consulting, personal household budgeting, loan analysis, product management and marketing, as well as QuickBooks training and support. The business will expand its services to include three new offices in Elkhart County and financial education classes, on how to budget and manage debt. Additionally, the company will add an equipment leasing website database, to assist local companies in procuring expensive manufacturing related equipment on a part-time basis from one another. This will require an investment in the form of a $560,000 grant. The company is requesting this grant to be used throughout the plan’s period of three years and beyond, to complete its expansion. This business plan organizes the strategy and tactics for the business' growth over the next three years.

[INSERT IMAGE/LOGO]

The business will offer clients accounting services with the oversight of an experienced accountant at a price they can afford. To do this involves hiring additional accountants, tax preparers (staff accountants) and accounting managers. It will also need to keep fixed costs as low as possible and continuing to define the expertise of the company through its financial education courses and leasing website resources. The effects will allow sales to grow substantially over the three years; as 18 staff accountants are deployed to clients, as needed, while two officer managers and a regional officer manager supervise the operations. The principal and an additional salesperson will operate the leasing equipment database division, while the financial education courses will utilize a dedicated instructor.

Chart: Highlights

1.1 Objectives

[YOUR COMPANY NAME] seeks to launch two new lines of services to add to its individual and small business tax and accounting firm. They include financial education classes and a manufacturing leasing service, which will be offered to the same ongoing clients and to its new client base.

 [YOUR COMPANY NAME] has set the following objectives:

To launch it's accounting services in new offices in [YOUR CITY], [YOUR STATE/PROVINCE]

To achieve substantially greater annual revenues within three years

To hire two seasoned accounting mangers, a salesperson, for the leasing division, and a teacher, for the course offering by 2011

To employ a total of 18 staff accountants and add one more manager by the end of 2012.

1.2 Mission

[YOUR COMPANY NAME] seeks to provide tax, accounting and consulting services at a more affordable cost to individual and small businesses in [YOUR CITY], in [YOUR STATE/PROVINCE]. It will also offer budgeting and debt consulting courses to the public, allowing students to make valuable financial management decisions from their numbers. By the end of 2012 it plans to have an additional 3 offices and add 17 employees; eventually seeking to expand its operations to 10 offices and 50 employees. The focus on community proliferation will intensify to include a new website database to allow businesses save while lease manufacturing related equipment on a part-time basis from each other. 

1.3 Keys to Success

The keys to success for [YOUR COMPANY NAME] are:

Continue to build trust within the community through financial education classes

Maintaining up-to-date technologies and education on accounting practices and laws

Create jobs and profits for clientele through the website for manufactures'

Adhering to ethical practices when it comes to transparency, reporting, and taxes

2.0 Company Summary

[YOUR COMPANY NAME], established in 2006 by [YOUR NAME] , is a firm that provides tax services, accounting, cost consulting, and QuickBooks and budget management training. Its clients are individuals and small businesses in the [YOUR CITY], [YOUR STATE/PROVINCE] region. [YOUR COMPANY NAME] plans to add a manufactures' leasing exchange website and financial education classes to its suite of offerings to better serve its current and future clients, and the community as a whole.

2.1 Company Ownership

[YOUR NAME] is founder and 100% owner of [YOUR COMPANY NAME]; a sole proprietorship.

2.2 Company History

Founded by [YOUR NAME] in 2006, [YOUR COMPANY NAME] has transformed from a part-time operation to becoming, in 2009, a full-time endeavor for [YOUR NAME]. The company has since added a debt reduction website and finance education to its line of tax and accounting services.

[YOUR COMPANY NAME] has grown significantly in the past three years from $8,107 to $138,720 in total annual revenue, but has had difficulty taking on additional work due to its singular location and because about 40% of its clients commute from neighboring [CITY]; thus the need for offices outside of [YOUR CITY]. The business continues to operate from one location in [YOUR CITY] and has grown to 6 employees.

Table: Past Performance

Chart: Past Performance

3.0 Services

Current services offered by [YOUR COMPANY NAME] include:

Tax Services:

Tax preparation

Tax planning

Addressing tax problems (audit representation, back taxes owed, payroll tax problems, IRS issues, bankruptcy)

Accounting Services:

Audits, Financial Projection, Payroll processing, Bank reconciliations

Inventory management

Financial statement preparation

QuickBooks training

Budget and debt management (through consultation and a website)

The new services will include a website database to facilitate the leasing of manufacturing related equipment across small business in the expanding market segment. Firms owning equipment items, that are utilized only part time, will be allowed to sub-lease these items to other firms. [YOUR COMPANY NAME] will pair the two clients and receive revenue from a finder’s fee and on a commission-based structure. Example:

A manufacturing company that is a current client buys a new $200,000 CNC router. They only use it 80% of the time, so [YOUR COMPANY NAME] database would post the 20% availability to other companies in the area, through the designed website. Another company develops a product that requires 15% of that usage. Once the transaction is completed, [YOUR COMPANY NAME] receives a finder’s fee from the first company and a commission from the company that gets the contract to lease the 15% usage.

The second service will be an extension of the budget and debt management consultations, currently being offered; clients will be offered the opportunity to receive extensive training in this area, through classes designed and taught by a specialist. In addition, a community offering will allow high-school students, and others, a series of non-fee based lectures to help prepare them for a future in today's advancing economy.

4.0 Market Analysis Summary

The small business accounting market consists of virtually every small business in [YOUR COUNTRY]. As businesses grow larger than one-person, sole proprietorships, they generally require expert help with at least their tax preparation, and often with additional bookkeeping and accounting services. Even many non-employer sole proprietorships will use accounting help at some point. While some small businesses hire bookkeepers or CFOs directly, many successfully out source these types of services.  

The accounting service market as a whole includes the following:

Corporate accounting and auditing firms: The "Big Four" (PricewaterhouseCoopers, Ernst & Young, Deloitte Touché Tohmatsu, and KPMG) and their competitors

Small business accounting

Personal accounting (by H & R Block and the like)

The National Society of Accountants states that it represents more than 30,000 independent practitioners who provide services to 19 million individuals and businesses. The continuing evolution of [YOUR COUNTRY] tax laws guarantees work for tax accountants on an ongoing basis. The market is somewhat recession-proof, as businesses, which are contracting the use of accountants to help cut spending and limit tax liability; just as growing businesses will use accountants to launch and prepare financials for expansion, mergers and acquisitions.

4.1 Market Segmentation

Across [YOUR CITY] there are 77,379 households (2000 U.S. Census Bureau), 15,364 non-employer firms (2007 U.S. Census Bureau) and 18,298 total firms (2002 U.S. Census Bureau). This represents the market of individual and small businesses in [YOUR CITY] for [YOUR COMPANY NAME]. It has been divided into three groups:

Non-employer firms (Individuals):

Without employees, these firms do not have many of the concerns of larger businesses. However, the owners must be vigilant to protect their own tax liability and sort out how their personal and business tax returns intersect. These firms are generally buyers of QuickBooks services and tax preparation services. As they grow, this group becomes ripe for outsourced bookkeeping services before they can hire a full-time in-house bookkeeper.

Very small businesses:

Made up of businesses that are designed to stay small and those that are growing through a phase, these businesses require payroll services, bookkeeping, and tax preparation. They are concerned about losing control, but can generally be convinced of using outsourced accounting and bookkeeping with cost analysis. With the stakes higher, these businesses can make greater use of management accounting services, especially as most cannot afford a dedicated CFO. Many do not need a full-time bookkeeper, but can make do with part-time help, which limits their hiring options.

Other small businesses:

Many of these businesses will have some in-house financial management and bookkeeping help. However, they may be able to save money by outsourcing these services, as they are not generally core to what the business seeks to do. These businesses may be comfortable with their situation as a cash producer for their owners or intent on growing or positioning themselves for sale.

Table: Market Analysis

Chart: Market Analysis (Pie)

4.2 Target Market Segment Strategy

[YOUR COMPANY NAME] will focus on all three segments as a target group for its services as this group can make the most consistent use of part-time bookkeepers. However, these businesses often do not have the resources to provide proper oversight or training to their in-house bookkeepers, and will suffer from not having the advantage to hire the cream of the crop. [YOUR COMPANY NAME] can provide the solution to these problems.

4.3 Service Business Analysis

The small business accounting industry consists of numerous independent accountants and bookkeepers as well as many small firms. Larger firms tend to pursue medium and large business clients.  

Owners and top managers of small businesses purchase accounting and bookkeeping services. They will contact businesses by phone and generally meet in person to interview and discuss the prospect of working together.

4.3.1 Competition and Buying Patterns

Major competitors in the [YOUR CITY] market include:

Corporate Tax and Accounting Services (H&R Block): Provides tax and bookkeeping services and seeks medium to large business clients. Their major weakness is the reliance on their own proprietary pricing methods and software packages rather than tailoring pricing based on actual need and using QuickBooks, the industry standard for small businesses. [YOUR COMPANY NAME] will exploit this cookie-cutter approach through a valued added approach to providing tax and accounting consultation.

For accounting services, the business also must compete indirectly against the prospect of businesses hiring their own part-time bookkeepers. This gives businesses the advantage of greater control and perhaps development of a future full-time employee. If the hire works out, the cost can be lower for a business than an outside service. However, this can lead to employees who are not as well-educated or experienced as bookkeepers through an accounting firm who have worked with a range of businesses. Generally, the cost is lower in the long run with a bookkeeping service, as training is done more systematically and supervisors are more regimented and experienced.  

To choose between competitors, factors considered by clients include:

Positive references (especially from known sources or other businesses in the same industry)

Price (often low on the list of considerations, as long as price is not exorbitantly high)

5.0 Strategy and Implementation Summary

To promote the business to its target of businesses, [YOUR COMPANY NAME] will:

Expand its physical presence through 3 new offices in [YOUR CITY] and expand its marketing campaigns

Initiate a systematic client referral program to prospect within existing clients and their contacts, including both its leasing database and financial education clients

5.1 SWOT Analysis

The following represents the strength, weaknesses, opportunities and threats to [YOUR COMPANY NAME] as recognized through several years of operation, from start-up to its current full-time status.

5.1.1 Strengths

The owner is experienced across a number of industries, as opposed to viewing the environment from solely an accountant's point of view i.e. the traditional bean counter perspective with little real world management experience. As overseer of several businesses in the area, [YOUR NAME] will bring multiplicity to the firm’s clients who often seek other strategic business advice, such as marketing strategies.

5.1.2 Weaknesses

As [YOUR COMPANY NAME] began its full-time operation in 2009 is has yet to procure seasoned tax and accounting professionals to provide full accounting services to its corporate clients beyond what the principal is offering personally. This has kept its market share limited. [YOUR COMPANY NAME] has included in this plan a supplement to this drawback, by dedicating a seasoned managers for each new office, who will be able to provide corporate tax preparation and accounting services as it expands into its new markets.

5.1.3 Opportunities

[YOUR COMPANY NAME] is able to eliminate the economies of scale advantages from its large corporate competitors by proving better pricing, by up to 50% in many cases, and the value of personalized tax and accounting services, to its clients. Also, with the addition of its new services: the equipment sub-leasing service and the financial education and training courses; [YOUR COMPANY NAME] will become a comprehensive solution to business owners who require a total hands on approach to improving as a firm.

5.1.4 Threats

In addition to the economies of scale threats from the national firms, [YOUR COMPANY NAME] must also compete with its larger clients seeking to develop in-house accounting personnel and relying on it for only income tax services. [YOUR COMPANY NAME] believes that expanding its financial education and budgeting classes as well as it equipment sub-leasing program will help keep clients returning for its complete line of services.

5.2 Competitive Edge

[YOUR COMPANY NAME] will achieve a competitive edge over [YOUR CITY] tax and accounting firms, by offering services at a higher value for price and adding to the traditional services through its sub-leasing and educational divisions. By providing these incentives, [YOUR COMPANY NAME] will place its firm in the forefront of those offering a limited tax and accounting service. Smaller firms that need specific advice and services will have little difficulty choosing between other firms and [YOUR COMPANY NAME], especially when they desire business marketing assistance and financial training.  

Moreover, large firms tend to ignore the small business market because they are better positioned to serve larger businesses. They are unlikely to imitate this strategy, as they will find it difficult to convince small businesses that they can offer services that are affordable to them.

5.3 Marketing Strategy

[YOUR COMPANY NAME] will use the following marketing tactics to reach its target market with its services:

Establishing three new locations in [YOUR CITY]

Providing a sub-leasing website database and matching service

Offering financial education and debt management courses on a sliding fee scale

Use its existing free radio and TV ads spots, for it educational services, to build goodwill

The goal of [YOUR COMPANY NAME] is to be able to retain and acquire new clients through these offerings. It currently has relationships with local radio and television stations to deliver free ads for its non-fee based educational classes. It will now add to the division by introducing, a fee scale on its advanced courses. The 3 new offices will allow the firm to expand its market exposure to include all of [YOUR CITY], increasing its total exposure from about 15,000 households to nearly 80,000 across [YOUR STATE/PROVINCE]. [YOUR COMPANY NAME] will use the current advertising relationships to increase the effects of its paid-for marketing campaign.

5.4 Sales Strategy

The sales strategy for [YOUR COMPANY NAME] is based on the actual increase in exposure due to its new offices. Its current office is in [YOUR CITY], [YOUR STATE/PROVINCE] in [YOUR CITY], a county of about 37,000 residences. Since 40% of its clients come from [YOUR CITY] with a population of about 200,000 residences, the first new office will be located in neighboring [CITY], [YOUR STATE/PROVINCE].

The addition of its two new services, a manufacturing equipment sub-leasing website/database and financial education courses, will give the firm an additional client base and allow it to gain revenue to complement its tax and accounting services. The manufacturing related equipment-leasing program will be offered on a commission basis and therefore provide income linked to performance. The educational courses will be charged on a sliding scale, allowing all clients the opportunity to take advantage of the offering.

5.4.1 Sales Forecast

Total sales are expected to rise significantly with the success of the new offices' and offering’s revenue streams. The existing revenue streams grew at a slower rate due to the part-time nature of the office in 2007 and 2008, and to the fact that the principal was the only corporate income tax experienced member of his staff. Clients were only able to get the more in-depth corporate tax preparation from him. Now that the firm will open a new office and hire a devoted corporate income tax experienced manager, the firms growth will continue to increase.  It is expected that the 3 new office and services will increase revenue from a projected $301,280 at year end 2010 to $553,374 by year end 2011. After the expansion to 4 total offices and two full tax seasons under its belt, [YOUR COMPANY NAME] expects sales to grow to $920,905 by year end 2012; with the help of its education and leasing division.

The sales forecast assumes part-time accountants/tax prepares working about 24 hours per week during the non-peak income tax season and a regular shift during the months of Jan - April; the peak season. This group will grow from 6 staff accountants at the start of 2012 to 10 by the end of 2012, then to 14 in 2012 and 18 by the end of 2013.

This growth rate is made possible by the intention to do everything possible to retain clients and grow with them, as well as to actively seek referrals from these clients. Two levels of oversight ([YOUR NAME]’s oversight over the accounting Managers, and the Managers' oversight over all staff accountants) will improve quality assurance and the chances of a high level of client retention and satisfaction.

Table: Sales Forecast

Chart: Sales Monthly

Chart: Sales by Year

5.5 Milestones

To execute the milestones listed, [YOUR COMPANY NAME] will make use of the $560,000 grant to provide the investment for its expansion over the projected three years and beyond. The ultimate goal is to reach 10 offices:

Develop & implement manufacturing equipment time-share website and add a dedicated salesperson

Enhance the educational website to incorporate regular courses, an instructor and marketing campaign

Purchase an additional office in [YOUR CITY], [YOUR STATE/PROVINCE], hire a manager and institute a marketing campaign

Lease an additional office also in [CITY], at the start of 2013, adding a Regional manager and additional marketing

Lease a third office in [CITY] at the start of 2013, adding another manager and 4 staff accountants to the team

Table: Milestones

Chart: Milestones

6.0 Management Summary

[YOUR NAME] is sole manager of [YOUR COMPANY NAME]. With the launch of the new offices, [YOUR NAME] will oversee the three full-time managers who will in turn oversee the work of the staff accountants. The ideal manager will have 10+ years of professional work and accounting experience. The designated salesperson and instructor will give the principal additional time to devote to gaining better market exposure and continuing revenue growth.

6.1 Personnel Plan

The personnel plan will grow the employee structure from 6 staff accountants to the following:

In August of 2010, a new manger will oversee the first new office in [CITY], [YOUR STATE/PROVINCE]. A regional accounting manager will be brought in to oversee the operations of the new [YOUR CITY] offices in 2011. Finally, in January 2012 a fourth office will be added, as well as another manger and 4 more staff accountants. This will bring the total to 1 regional manager, two officer managers and 18 staff accountants. 

The financial education classes as shown in the budget will have a dedicated instructor; and, a salesperson will be added to generate new business in the manufacturing equipment leasing division.

Direct cost wages for managers are on a yearly basis. Staff accountants’ salary structure will be on either an hourly rate during the non-peak season ($12-16/hr) or and hourly ($8/hr) plus commission (30%), for the peak-season. This will give them incentive to increase sales and allow them to take advantage of the revenue they generate.

Table: Personnel

7.0 Financial Plan

The financial plan of the business requires growth financed by positive cash flows from operations as it expands, and of course the additional outside investment of $560,000; in the form of a grant. The new business lines are not too capital-intensive beyond the acquisition of new plants, personnel and equipment, but will increase the fixed costs of the business, which will eventually be covered by additional revenues from existing sales. As the new offices and divisions increase revenue they will in turn provide the required investment for the up coming offices and expansion. After year three, when the initial grant investment begins to deplete, [YOUR COMPANY NAME] plans to be able to sustain its own growth toward its final goal of 10 officers and 50 employees, without further out-side investment.

7.1 Important Assumptions

The firm will acquire three mangers, a salesperson and an instructor as key employees in the initiation of its three new offices and two new divisions. The business will grow the number of staff accountants with the business over the next three years as follows. In the first year, four staff accountants will be added to the new facility in [CITY], next a 2

nd

office will require another 4 new staff accountants, in total 23 new employees will operate the four total offices and two new divisions through years 1 to 3 of this plan.

7.2 Break-even Analysis

Our monthly revenue break-even is based on the fixed costs of running the new offices and divisions along with the old lines of business. This is a significant increase from the 2009 break-even point. The increased marketing activity, rent and payroll expense for the new offices and staff accountants, drives this break-even point analysis.

Table: Break-even Analysis

Chart: Break-even Analysis

7.3 Projected Profit and Loss

[YOUR COMPANY NAME] actually expects its gross margin to remain stable as it takes on employees to fulfill the new office expansion and services. Thus the growth in revenues will produce a consistent growth in net profit. Marketing will include the activities listed for 2010 in the milestones table, in which includes a plan for additional runs of radio, and television fee based advertising. This expense will drop somewhat in future years as marketing returns to the business's focus on referrals and word-of-mouth from clients.

Rent and utilities will grow significantly, as the firm continues to add office space. August will be the month of initial setup and acquisition. This is when the firm will bring in 7 new employees and purchase its first new office space. For the rest of 2010, the bulk of expenses include, salary for the manager and 4 staff accountants, as well as office, computer and software set-up for the office in [CITY], [YOUR STATE/PROVINCE].

Thus from a monthly profit analysis the firm does not expect to see significant profit after August 2010 until on into 2011, when the new peak tax season will begin. In mid-January 2011, revenues will begin to offset the initial hiring expenses. Yearly profit is really expected to show signs of healthy growth by 2012, despite the additional of the fourth office.

Table: Profit and Loss

Chart: Profit Monthly

Chart: Profit Yearly

Chart: Gross Margin Monthly

Chart: Gross Margin Yearly

7.4 Projected Cash Flow

The expansion of the business can be undertaken with the infusion of the $560,000 grant investment as the hiring, property purchase, leasing, marketing and set-up expenses for the new business locations and divisions are paid. The net cash flow will show significant explosion during this month and continue through the end 2010. As the firm reaches 2011, the net cash flows will drop down into the $80K range and then continue to nearly double from 2011 to 2012.

Table: Cash Flow

Chart: Cash

7.5 Projected Balance Sheet

The net worth of the business will improve if the new business expansion succeeds as expected. Additional external financing will be not be needed after a solid revenue base is achieved as the debt of the business will remain low.

Table: Balance Sheet

7.6 Business Ratios

[YOUR COMPANY NAME] is compared here to the "Tax Preparation Services" industry of $500,000 to 999,999 in revenues.  

The assets of the business are primarily the human and knowledge assets of the accountants. Gross margins are slightly higher then industry averages. However, S G & A will be substantially higher than the industry averages because of the need for an extra level of management to oversee the employees.

Table: Ratios

Table: Sales Forecast

Table: Personnel

Table: Profit and Loss

Table: Cash Flow

Table: Balance Sheet