Do you expect the cost of supplies to hold steady or fluctuate? If the latter, how will you deal with changing costs? What are your suppliers’ payment terms? Credit policies If you plan to sell to customers on credit, explain: Whether this is typical in your industry (do customers expect it)? What your credit policies will be. How much credit will you extend? What are the criteria for extending credit? How will you check new customers’ creditworthiness? What credit terms will you offer? Detail how much it will cost you to offer credit, and show that you’ve built these costs into your pricing structure. How will you handle slow-paying customers? Explain your policies, such as when you will follow up on late payments, and when you will get an attorney or collections agency involved. After reading the Operational Plan section, the reader should understand how your business will operate on a day-to-day basis. VI. Instructions: Management & Organization This section should give readers an understanding of the people behind your business, their roles and responsibilities, and their prior experience. If you’re using your business plan to get financing, know that investors and lenders carefully assess whether you have a qualified management team. Biographies Include brief biographies of the owner/s and key employees. Include resumes in the Appendix. Here, summarize your experience and those of your key employees in a few paragraphs per person. Focus on the prior experience and skills that have prepared your team to succeed in this business. If anyone has previous experience starting and growing a business, explain this in detail. Gaps Explain how you plan to fill in any gaps in management and/or experience. For instance, if you lack financial know-how, will you hire a CFO or retain an accountant? If you don’t have sales skills, will you hire an sales manager or use outside sales reps? Advisors List the members of your professional/advisory support team, including: Attorney Accountant Board of directors Advisory board Insurance agent Consultants Banker Mentors and advisors
Do you expect the cost of supplies to hold steady or fluctuate? If the latter, how will you deal with changing costs? What are your suppliers’ payment terms? Credit policies If you plan to sell to customers on credit, explain: Whether this is typical in your industry (do customers expect it)? What your credit policies will be. How much credit will you extend? What are the criteria for extending credit? How will you check new customers’ creditworthiness? What credit terms will you offer? Detail how much it will cost you to offer credit, and show that you’ve built these costs into your pricing structure. How will you handle slow-paying customers? Explain your policies, such as when you will follow up on late payments, and when you will get an attorney or collections agency involved. After reading the Operational Plan section, the reader should understand how your business will operate on a day-to-day basis. VI. Instructions: Management & Organization This section should give readers an understanding of the people behind your business, their roles and responsibilities, and their prior experience. If you’re using your business plan to get financing, know that investors and lenders carefully assess whether you have a qualified management team. Biographies Include brief biographies of the owner/s and key employees. Include resumes in the Appendix. Here, summarize your experience and those of your key employees in a few paragraphs per person. Focus on the prior experience and skills that have prepared your team to succeed in this business. If anyone has previous experience starting and growing a business, explain this in detail. Gaps Explain how you plan to fill in any gaps in management and/or experience. For instance, if you lack financial know-how, will you hire a CFO or retain an accountant? If you don’t have sales skills, will you hire an sales manager or use outside sales reps? Advisors List the members of your professional/advisory support team, including: Attorney Accountant Board of directors Advisory board Insurance agent Consultants Banker Mentors and advisors