Sample Business Plan - Executive Summary for J&B Incorporated



Company Overview
In September of 200V, J&B Incorporated (J&B) was formed to provide individuals with the opportunity to own and operate their own business.

Our management team consists of individuals having extensive experience in the business training industry, computer industry, as well as the small business industry. Their talents combine to ensure a well rounded management structure.

John P. Smith, as President, has years of experience in training individuals in accounting, marketing, strategic planning, computer applications, finance, production, and business plan creation. Barry J. Beck, as Financial Controller, brings years of experience in marketing, production, organizational structuring, taxation, capital, finance and entrepreneurial experience.

Product Strategy
J&B's initial product can be characterized as an extensive business training course that provides clients with the pre-requisite skills needed to own and operate their own business. The product will be sold in four (4) forms; diskette, compact disk, Internet and hard-copy form. The first three forms, use a unique technology called "hypertext" and accommodates those customers having access to a computer. The hard copy form or manual will satisfy all non-computer owners.

Management has been researching and developing this product for two and a half years. The format has been established and much of the material has been developed, however, additional business training content must be written and edited before it can be brought to the marketplace. The development phase is expected to last four months (January to April 200W) and cost $47,772.

J&B will play an active role in researching and developing future products. In year one, two and three, the Company will invest $98,882, $121,977, and $125,440 respectively into R&D; for a total of $346,299 over the three year forecasted period.

Market Analysis
The Company's primary target market will consist of U.S. residents who want to start a home-based business. Currently the number of part-time and full-time home businesses in the United States exceeds 25 million, with over 500,000 new start-ups each year. Some experts even suggest that by the year 200Y, over 40% of the U.S. workforce will be operating businesses out of their home.

Marketing Plan
The Company has designed an innovative pricing strategy that encourages customers to buy the training product in software form rather than in hard copy form. Furthermore, the product will sell at half the price of rival products.

The Company's initial distribution strategy is to select channels that allow us to operate undetected by major competitors. These channels include, an in-house sales staff, the Internet, and through Internet Stores. As J&B strengthens its financial position and diversifies its product-line, we plan to expand the channels by using direct mail initiatives, telemarketing and by signing on distributors.

In year one, J&B has forecasted $130,000 in advertising & promotions, $150,000 for year two and $170,000 in year three. The budget will be distributed among magazines, newspapers and the Internet. In addition, we will use a rather unique method of radio promotion called P.I. advertising. P.I. Advertising will allow us to receive free radio advertising during periods when "listenership" is at its highest. Public Relations, in the form of press releases and newsletters, will play a vital role in future promotional activities.

Our Advertising and Promotions campaign is expected to generate unit sales of 7,882 in year one, 9,907 in year two and 11,602 in year three; thus resulting in dollar sales of $582,401 in year one, $673,775 in year two and $784, 411. Gross margin in year one is 77.65%, in year two is 78.27% in year three is 80.51%.

Financial Plan
The equity capital required at this time is $100,000. This will be raised through private investors by selling 50 Class "B" Common Shares. To stimulate equity investors, the Company is applying for the Equity Investor's Incentive Program. This Program provides investors with an immediate cash rebate of 25% of the investors' original investment.

The Equity Capital will be used to complete the development of the Company's initial business training product, for market testing, to undertake entry into the marketplace, to develop comprehensive action plans, and to participate in future training product initiatives.

An additional $20,000 is required in January 200W. This will be used as bridge financing until J&B has secured the necessary equity financing.

The financial projections indicate that the bank loan will be paid in its entirety in December 200W. The shareholders will be paid through non-cumulative dividend distributions. The financial statements indicate dividends of $20,000, $25,000, and $30,000 which will be distributed among the classes of shareholders in December of 200W, 200X, and 200Y. Class "B" Common Shareholders are entitled to a $240, non-cumulative per share dividend before any dividends are distributed to Class "A" Common Shareholders. The remaining dividend will be shared on a prorated basis.

With the yearly declared dividends stated above, a non-cumulative dividend of $240 per share, and our dividend sharing policy, an investor eligible for the Equity Investors' Incentive Program could earn a 19.56% rate of return in year one, 21.78% in year two and 24.00% in year three.

Categories: Business Plans