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::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: : : : Copyright (c) 1992, David A. Works : : All Rights Reserved : : : : This is NOT free software. This is : : NOT public domain software. This : : is shareware: you must pay the : : registration fee to Grand Universal : : if you use it. See registration : : details in the REGISTER ME file : : : ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: PART 1 PLEASE ORDER "USER'S GUIDE" (This version is limited by being a text file and by size). Registration has great benefits: 1. User's Guide 2. Latest version of Business Plan Master 3. Bonus diskette 4. Additional Features Business Plan Master USER'S GUIDE David A. Works Grand Universal P. O. Box 4118 Whitefish, MT 59937 Member Association of Shareware Professionals (ASP) HOW TO REGISTER BUSINESS PLAN MASTER® There are several different ways to register BUSINESS PLAN MASTER. Please use whichever method is most convenient for you. In all cases you will receive the latest version available at the time your order is received. Read the sections that follow and the registration forms below for other benefits of registration. -BASIC REGISTRATION- • Latest Version Of Business Plan Master • Technical support (minimum 3 months) by way of regular mail, e-mail (through the online services listed below), or phone. • Update notices will be sent to you. SPECIAL OFFERS: Shareware Magazine Registered Users of BUSINESS PLAN MASTER are entitled to receive a discount on a subscription to Shareware Magazine. The regular yearly subscription rate of $14.95 is reduced to just $9.97. A toll-free number and special Order Number will be provided upon registration. CompuServe Full details about a special offer for CompuServe will also be provided. The offer provides for FREE sign up, a $15.00 usage credit and a complimentary subscription to CompuServe Magazine. **PROFESSIONAL REGISTRATION** ADDITIONAL FEATURES: In addition to all the features listed above, we will also include the following: • Personal Net Worth Statement For many loans, a Personal Net Worth statement is part of the mandatory application package. This spreadsheet creates one for you! • Promissory Note Borrowing money from family or friends? Keep it on a business level with a promissory note which details all the terms and conditions of the loan. • Nondisclosure Agreement This Nondisclosure Agreement protects your rights and ideas. Mandatory when sharing your business plan with investors. • Non-Compete Agreement You have spent many years sharing your ideas with your employees or partners, now one of them runs off to your competitor! Not if they have signed one of these! • Graphs - A load of graphs to aid in your presentation. • Market Research Package Many people ask me where to get the numbers that need to be plugged into the sales area of the "Proforma". Foghorn Leghorn says,"It's Math-a-matics, boy! You can argue with me, but you can't argue with figures!" Unfotunately, people who want to lend you their life savings aren't likely to be impressed by Foghorn's philosophy. Hard numbers can only come from thorough market research. This complete package of template files will do for your marketing research what the files you already have do for a complete business plan. That way you will have solid numbers to base your "Math-a-matics: on and hard data to write your "Marketing Strategy" section. • Loan Repayment Schedule and Amortization Schedule One is for short loans and the other is for very long ones. Lets you know when you get to feed your friendly banker. USER'S GUIDE A complete PRINTED User's Guide will be included with all registrations. The User's Guide will also include screen shots of all templates and spreadsheets. This will make filling out these spreadsheets MUCH easier! BONUS DISKETTE: Also included with the registered version diskette will be another diskette with exceptional business and productivity programs. REGISTER DIRECTLY WITH THE AUTHOR: Please mail the completed Author Registration Form with payment to Grand Universal at the address below. Please include any comments about BUSINESS PLAN MASTER with your order. This is how I get my stockpile of smart aleck quotes to use with my marketing literature. Hope the P. O. Box doesn't offend you, but going to the Post Office is one of the highlights of our small town's social scene. "I WANT THE PROGRAM RIGHT NOW!" If you need Business Plan Master in a big hurry, CALL us and we'll ship UPS Second Day Air. The total charge for this is $12 which covers the freight and the COD charge. (I must reserve the right to discontinue this service if I get a bunch of bogus checks.) This is only available in the Lower 48 states. If you need it even faster than this, call anyway and I'll see what I can do (for a price). Because I live in a relatively remote corner of the world (we had a moose living in our backyard last winter), I can't really guarantee Next Day shipments. This program is produced by a member of the Association of Shareware Professionals (ASP). ASP wants to make sure that the shareware principle works for you. If you are unable to resolve a shareware-related problem with an ASP member by contacting the member directly, ASP may be able to help. The ASP Ombudsman can help you resolve a dispute of problem with an ASP member, but does not provide technical support for members' products. Please write to the ASP Ombudsman at 545 Grover Road, Muskegon, MI 49442 or send a CompuServe message via CompuServe mail to ASP Ombudsman 70007,3536. BUSINESS PLAN MASTER® v2.8 Author Registration Form Macintosh Use this form to register your copy of BUSINESS PLAN MASTER and order the latest version directly from the author. NAME:_____________________________________________ COMPANY:_____________________________________________ ADDRESS: _________________ CITY/TOWN:________________ STATE/PROV: _______ ZIP/CODE: _________ COUNTRY:____________ TELEPHONE: ______________________ HOW DID YOU FIRST LEARN OF BUSINESS PLAN MASTER ? _________________ HOW DID YOU GET THE EVALUATION COPY ? _____________________________ ------------------------------------------------------- QTY DESCRIPTION PRICE TOTAL ------------------------------------------------------- PROFESSIONAL: above, plus includes a Printed User's Guide, additional features, ___ BONUS diskette $44.00 ___.00 BASIC: latest version of BUSINESS PLAN MASTER, upgrade notices, , CIS/Shareware Mag. offer ____ $34.00 ___.00 Shipping and Handling: ANY: $4 US (1st class), $10 overseas (air) _4.00 ___.00 2nd Day Air: $12.00 12.00 ___.00 TOTAL: ___.00 INVOICE contains an invoice that can be given to your purchasing department to ease ordering. Grand Universal CompuServe 70400,153 David A. Works America OnLine DAVIDW2959 P.O. Box 4118 GEnie D.WORKS3 Whitefish, MT 59937 (406) 862-1280 Table of Contents _________________________________________________ Introduction 1 Requirements 2 Usage 2 Files 3 Using Business Plan Master 4 BPM Historical Financial Worksheet 4 BPM Proforma Worksheet 6 Break Even Worksheet 12 Business Plan Master® 13 Title Page 13 Table of Contents 13 Executive Summary 13 The Management 14 [Your Company] History 15 Objectives 15 Our Competitive Advantages 16 Pricing 17 Specific Markets 17 Targeting New Markets 18 Location 18 Manufacturing Plan 18 Research & Development 19 Historical Financial Data 19 Proforma Financial Data 19 Proforma Cash Flow Analysis 20 Income Statement 20 Balance Sheet 21 Ratio Analysis 21 Financial Standards 21 Breakeven Point 21 Use of Money 21 Business Plan Master - User's Guide -------------------------------------------------- Introduction ____________ Back in my younger days, I ran a small importing company. One of the sayings we used to pass around was "We may not be making any money, but we sure have fun!" Unfortunately that was very true. As a young kid out of college, it was a great thrill to drive all over the country, seeing new sights and having the impression that I was making a lot of money. But I wasn't, and it took me many years to discover why I didn't make money. As foolish as it might sound, I recently attempted to re-enter the same market but in a different way. This time I put down my plans in writing. I found it to be a lifesaver! I originally had hoped to raise outside capital but that was not a realistic proposition. I eventually gave up on the idea before investing much money in it. The point I am making is this - I wouldn't have known when to quit if I hadn't had my ideas, plans and assumptions in writing. Even though I tried to raise money, I soon learned that the value of the plan far exceeded all the hype I originally was advised to include (through various books and consultants) to impress outside investors. I ended up writing the plan just for ME and found that others liked it better that way. Now I am involved with several businesses and spend a fair amount of time helping other businessmen. I owe a lot of my current success to my original business plan and the discipline it brought into my business life. Every business needs a business plan and every business needs to keep their business plan current. It will be your road map to reach your goals and your guide to achieving what you want. David A. Works Business Plan Master Page 1 User's Guide Business Plan Master - User's Guide ------------------------------------------------ Requirements ____________ In order use "Business Plan Master®" you will need: • Any Macintosh • A word processing program • A spreadsheet program. Optional: • Microsoft Word 4.0 • Microsoft Works 2.0 • Microsoft Excel 3.0 • Laser printer (fonts are nice too!) • Spelling checker • Grammar checker • Thesaurus Usage ______ A good business plan is clear and concise and lays out your goals and plans. Good writing takes time and preparation. To save time, I have designed "Business Plan Master®" to be used verbatim. I recommend that you use your business plan as a guide for your business. Refer to it often to check your progress. Update it periodically. I recommend annually or semi-annually. Keep your old copies for future reference. Here are some ideas to get the most out of "Business Plan Master": • Get a copy of the "User's Guide". You can print this file out or register at the *Professional* level and I will send you one. You may find it useful to print out the other files as well as t hey are lengthy (also included in the registration package). • Work only on copies of the documents. • Keep your ideas simple and concise. Nobody likes to read long winded business plans. • Allow several hours for the preparation of your business plan. • Although we will generate a business plan that is some 30 pages long, your's may be shorter or longer. Some sections may not apply to your business. • Fill out the financial worksheets before spending time on the text. Business Plan Master Page 2 User's Guide Business Plan Master - User's Guide ------------------------------------------------- Files ______ BPM Proforma Financials This file contains a large Excel or Works worksheet that will give you a cash flow forecast, balance sheet, income statement, ratio analysis, and financial comparisons. BPM Breakeven Analysis A worksheet to help you determine your breakeven point. Must be used with BPM Breakeven Macros. BPM Historical Statements A worksheet to allow comparisons between your past financial statements and your proforma statements. Business Plan Master A file containing a sample business plan with sample text which you can use or modify. Formatted in the most popular style USERS GUIDE (Two parts) This User's Guide. REGISTER ME Registration details and order form. INVOICE Many companies need an invoice for accounting and tax purposes. Business Plan Master Page 3 User's Guide Business Plan Master - User's Guide -------------------------------------------------- USING BUSINESS PLAN MASTER® ------------------------------------------------- As mentioned previously, my recommendation is to start with the financial worksheets and then move into the text. This is very sadistic, I know, but if your business is not going to work out at a level acceptable to you or your investors, you need to know that before spending time on the text. So let me explain how to fill out the worksheets with your own projections and to understand the output they give you. BPM Historical Financial Worksheet ____________________________ [Optional] If you are already in business, then you probably have financial statements. You will need to include those in the "Attachment" area. You will find it useful to plug in that information into this file. This will allow you to compare your past financial history with the statements that will be generated by the other worksheets. This way you will be making a valid comparison. Description: This worksheet was originally created in Excel 3.0. It is one large worksheet. I had considered making a series of smaller "linked" worksheets, but decided that many users may not understand the usage of linked worksheets and therefore might lose data. Also, because it is one large worksheet, by using separate windows and separating the screen, you can instantly see the effect one area has on another. Also, I have placed protection on everything except the numbers. This is not to frustrate you, but to save you from making any changes which you have not thought totally through. To undo the protection use: Excel: "Options - Worksheet Protection Off" Works: You can only protect a single cell at a time. If you need to unprotect a cell, use "Options - Protected" and uncheck. Please keep in mind that any numbers already in the worksheet are examples and are probably nonsense. Business Plan Master Page 4 User's Guide Business Plan Master - User's Guide ------------------------------------------------- NOTE: (Excel only) Each section is recorded as a range name. This will make it easier for you to maneuver through the worksheet. To move to an area, use "Formula Go To" and pick out a range name. The first items to be entered are the variables into the "Income Statement". "Formula Go To - Statement Variables". Enter 1. The percentage rates of returns you have experienced 2. Your state tax rate 3. Your federal tax rate. Now you may go on to enter the remainder of the "Income Statement" information. This format should match most income statements. You may have to exercise some discretion as to where you should put specific items. Move to the "Asset Worksheet" "Formula Go To - "Asset Worksheet". Fill in the numbers in column B. If you have other fixed assets, include them in one of the topics as best you can. DO NOT ALTER C139! If you have other intangible assets, include them in "Other" and put them inB143. DO NOT CHANGE THE LOCATION OF THE TOTALS (C139 & C145)! Move to the "Balance Sheet" Formula Go To - "Balance Sheet". Next fill in the balance sheet. You will notice that your Fixed and Intangible Assets will be transferred over to this sheet. You will need to manually enter your depreciation rates in B231-D231. Once you have completed these, the other sheets will be automatically computed. Business Plan Master Page 5 User's Guide (Excel only) To print out any section of this worksheet, just use the "Option Set Print Area" command, then "Print" and you can have it printed out. I strongly suggest printing out each area separately to make your work easier. You can shrink the size of the printout on the Page Set Up menu. These are also included in the printed User's Guide received when you register. Locations: Income Statement: A149:I211 Statement Variables: M159:N161 Asset Worksheet: A122:I143 Balance Sheet: A216:G260 Ratio Analysis: A263:J287 D&B A290:I349 RMA A335:D404 ----------------------------------- BPM Proforma Worksheet ____________________ You may have a great business idea, but if it doesn't make financial sense, you mustn't go any farther. The purpose of this large worksheet is to test the financial validity of your idea. This section is undoubtedly the most complex, but it is the most vital. Without some hope of financial success, there is no reason to start or continue a business. Even if you find that your idea is not viable or does not meet your own personal expectations, this exercise will be well worth the time and effort to determine that fact. Description: This worksheet was originally created in Excel 3.0. It is one large worksheet. I had considered making a series of smaller "linked" worksheets, but decided that many users may not understand the usage of linked worksheets and therefore might lose data. Also, because it is one large worksheet, by using separate windows and separating the screen, you can instantly see the effect one area has on another. Also, I have placed protection on everything except the numbers. This is not to frustrate you, but to save you from making any changes that you have not thought totally through. To undo the protection use: Excel: "Options - Worksheet Protection Off" Works: You can only protect a single cell at a time. If you need to unprotect a cell, use "Options - Protected" and uncheck. Business Plan Master Page 6 User's Guide Business Plan Master - User's Guide -------------------------------------------------- Cash Flow Projections A12:AL78 This is a very large worksheet to help you track your cash flow. You may want to print out just this section to get a handle on what is involved. ----------------------------------------------------------------- IMPORTANT NOTE: REMEMBER THAT ENTRIES IN ONE AREA OF THE WORKSHEET WILL EFFECT OTHER AREAS OF THE WORKSHEET. DO NOT MAKE CHANGES IN THE FORMAT OF THE WORKSHEET UNTIL YOU ARE VERY CONFIDENT OF THOSE CHANGES. WORK ON A BACKUP COPY. ----------------------------------------------------------------- The best way to learn the relationships in the worksheet is to look at cells where it is obvious a calculation is being made. In general, the cash flow chart feeds into the Income Statement, which feeds into the Balance Sheet which feeds into the ratios and analyses. The place to start is to the "Variables" area. Formula Go To - "Variables". Here is what you need to fill in: Cash Reserve: You don't want to end any month with $0 or less in the bank. What will your cash reserve be? The worksheet will automatically determine how much of a bank loan you will need based on this figure. Markup: This is important for figuring inventory. If you have a service business, enter 100%. This will give you no inventory. (Default) Markup is figured as a percentage of SALES, i.e. you sell something for $100 and your cost is $50, your Markup is 50%. In mathematical terms (Sales Price/Gross Profit = Markup). Many think of Markup as the percentage difference between our cost and our sales price, i.e. I paid $50, sold it for $100, my mark up is 100%. This is markup on COST, not on sales. This distinction is important in your dealings with financial consultants, bankers or venture capitalists. Business Plan Master Page 7 User's Guide Business Plan Master - User's Guide -------------------------------------------------- Freight %: What percentage of inventory cost will your inbound freight be? If you have a service business, there will be none as this amount is figured as a percentage of inventory and you will have no inventory (due to the above entry). If you have a manufacturing company, inbound freight on raw materials will not be included, so the percentage is 0. Commission: How much commission (%) will you pay on sales? You might have this in a service business as finder's fees. Beg Cash: How much are you starting out with? Having completed this section, let's go to the "Sales" section (A20). If you have more than two products, you may insert them BEFORE the 2nd Product. This will keep the Total Sales calculation ok. I suggest that you wait before entering actual sales forecasts numbers. If you do an insertion, Edit Insert Row, keep in mind that several of the worksheets next to this Cash Flow Worksheet will have some holes in it. This will not effect the calculations, just the appearance. You can correct the appearance by 1. saving the worksheet and 2. Use the "Move" command on the section to be moved (highlight, Edit Cut, the Paste in the area you want). "Cash Receipts"(A27) I have used percentages which are typical if you are a cash business and do not grant terms. If your terms are different you may adjust accordingly by changing the percentages next to the month. If you are on a cash basis, put all cash receipts in the "Month of Shipment" row. Do NOT delete any rows. If you do, the rest of the worksheets will not work! Remember that the cells are protected so you will need to unprotect them to change data. Now you can fill in the remainder of your costs. Try to make things fit in the closest category. If you have any questions as to where anything belongs (and I haven't explained it well enough!) contact me and I will help. If your financials are complex enough, we may need to do a customized spreadsheet. (This is not a blatant advertisement; I like tinkering with spreadsheets and financial info.) Business Plan Master Page 8 User's Guide Business Plan Master - User's Guide -------------------------------------------------- Don't delete any category or the worksheets will fail! If you feel secure that these costs are going to be stable you can copy them across the width of the worksheet. Rent Rent or mortgage payments. Utilities Electric, gas, garbage, water, etc. Telephone Office, cellular, long distance charges (not equipment, that is an asset). Salaries Management personnel (not hourly). Total of all. Payroll Hourly employees Withholding In the US, we have to deduct a certain percentage for federal and state taxes, as well as Social Security. Other countries may have different rules. You will need to check with accountant or a government publication to determine rates as they vary according to many factors. Inventory,Materials This will be automatically calculated on your sales using the Mark Up percentage you entered into the "Variables". Freight-In Will also be automatically calculated based on "Freight Percent" in the "Variables". Office Supplies Paper, pencils, envelopes, coffee, etc. Postage Ordinary mail or overnight, but not in association with shipping finished merchandise. Advertising Newspaper, radio, flyers, brochures, etc. Professionals Accountants, lawyers, etc. Commissions Figured automatically from the "Variables". Insurance Liability, fire, auto, truck, etc. Travel/Entertn I put this here as it is a cost, but the US Government keeps changing the rules, so be careful about what you try to deduct out of this category. Be smart and only put legitimate expenses in. Business Plan Master Page 9 User's Guide Business Plan Master - User's Guide ------------------------------------------------- Research Every company devotes a different amount for research and development. Please enter an amount which is appropriate for your company, if any. Miscellaneous A good spot for odds and ends. State Taxes You may have to pay quarterly taxes. It will depend on your income. Federal Taxes Same reasoning as "State Taxes". Now, you can enter in sales goals. I left this purposely for last. Controlling costs is far more important than getting tons of sales. If your costs are not in line, you will be tempted to "fudge" on the sales. Having determined your costs up front will help you to be more honest. I have devised this worksheet to be all you need. If you have more products or other costs which need to be included, take your time changing the worksheet. Make sure you are very familiar with its operation and always fiddle around on copies, not on originals. It is a lot of work to rebuild this type of material. I know. While putting the finishing touches on this worksheet my hard drive fizzled. I recovered all of "Business Plan Master®" except this one worksheet. Lost a lot of time. Asset Worksheet A122:I143 This is a very simple worksheet which asks you to enter your proposed assets. They are totaled automatically and are used in the balance sheets. Income Statement A149:I211 This is automatically generated from the cash flow worksheet. This is often called a "Profit & Loss Statement". Hopefully, you will see a profit! I have included information on year-to-year changes for your own information. Business Plan Master Page 10 User's Guide