Business Plan for a Startup Business

The business plan consists of a narrative and several financial worksheets. The narrative template is the body of the business plan. It contains more than 150 questions divided into several sections. Work through the sections in any order that you like e!cept for the Executive Summary, which should be done last. "kip any questions that do not apply to your type of business. When you are finished writing your first draft you#ll have a collection of small essays on the various topics of the business plan. Then you#ll want to edit them into a smoothflowing narrative. The real value of creating a business plan is not in having the finished product in hand$ rather the value lies in the process of researching and thinking about your business in a systematic way. The act of planning helps you to think things through thoroughly study and research if you are not sure of the facts and look at your ideas critically. It takes time now but avoids costly perhaps disastrous mistakes later. This business plan is a generic model suitable for all types of businesses. %owever you should modify it to suit your particular circumstances. &efore you begin review the section titled Refining the Plan found at the end. It suggests emphasi'ing certain areas depending upon your type of business (manufacturing retail service etc.). It also has tips for finetuning your plan to make an effective presentation to investors or bankers. If this is why you#re creating your plan pay particular attention to your writing style. *ou will be +udged by the quality and appearance of your work as well as by your ideas. It typically takes several weeks to complete a good plan. ,ost of that time is spent in research and rethinking your ideas and assumptions. &ut then that#s the value of the process. "o make time to do the +ob properly. Those who do never regret the effort. -nd finally be sure to keep detailed notes on your sources of information and on the assumptions underlying your financial data. If you need assistance with your business plan contact the "./01 office in your area to set up a business counseling appointment with a "./01 volunteer or send your plan for review to a "./01 counselor at www.score.org. .all 12003450655 to get the contact information for the "./01 office closest to you.

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Business Plan

OWNERS
*our &usiness 8ame -ddress 9ine 1 -ddress 9ine 6 .ity "T :I7 .ode Telephone ;a! 1,ail

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I.
I. II. III. I>. >. >I.

Table of Contents

Table of .ontents ................................................................................................... 4 1!ecutive "ummary ............................................................................................... 5 <eneral .ompany =escription ............................................................................ 5 7roducts and "ervices............................................................................................ 3 ,arketing 7lan ....................................................................................................... ? /perational 7lan .................................................................................................. 13

>II. ,anagement and /rgani'ation ......................................................................... 61 >III. 7ersonal ;inancial "tatement ............................................................................. 66 I@. @. @I. "tartup 1!penses and .apitali'ation ................................................................ 64 ;inancial 7lan ....................................................................................................... 65 -ppendices ........................................................................................................... 6?

@II. 0efining the 7lan .................................................................................................. 62

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II.
Write this section last.

Executive Summary

We suggest that you make it two pages or fewer. Include everything that you would cover in a fiveminute interview. 1!plain the fundamentals of the proposed businessA What will your product beB Who will your customers beB Who are the ownersB What do you think the future holds for your business and your industryB ,ake it enthusiastic professional complete and concise. If applying for a loan state clearly how much you want precisely how you are going to use it and how the money will make your business more profitable thereby ensuring repayment.

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III.

eneral Company !escription

What business will you be inB What will you doB ,ission "tatementA ,any companies have a brief mission statement usually in 40 words or fewer e!plaining their reason for being and their guiding principles. If you want to draft a mission statement this is a good place to put it in the plan followed byA .ompany <oals and /b+ectivesA <oals are destinationsCwhere you want your business to be. /b+ectives are progress markers along the way to goal achievement. ;or e!ample a goal might be to have a healthy successful company that is a leader in customer service and that has a loyal customer following. /b+ectives might be annual sales targets and some specific measures of customer satisfaction. &usiness 7hilosophyA What is important to you in businessB To whom will you market your productsB ("tate it briefly hereCyou will do a more thorough e!planation in the Marketing Plan section). =escribe your industry. Is it a growth industryB What changes do you foresee in the industry short term and long termB %ow will your company be poised to take advantage of themB =escribe your most important company strengths and core competencies. What factors will make the company succeedB What do you think your ma+or competitive strengths will beB What background e!perience skills and strengths do you personally bring to this new ventureB 9egal form of ownershipA "ole proprietor 7artnership .orporation 9imited liability corporation (99.)B Why have you selected this formB

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I".

Pro#ucts an# Services

=escribe in depth your products or services (technical specifications drawings photos sales brochures and other bulky items belong in Appendices). What factors will give you competitive advantages or disadvantagesB 1!amples include level of quality or unique or proprietary features. What are the pricing fee or leasing structures of your products or servicesB

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".

$ar%etin) Plan

$ar%et researc& ' W&y(

8o matter how good your product and your service the venture cannot succeed without effective marketing. -nd this begins with careful systematic research. It is very dangerous to assume that you already know about your intended market. *ou need to do market research to make sure you#re on track. Dse the business planning process as your opportunity to uncover data and to question your marketing efforts. *our time will be well spent.

$ar%et researc& ' *o+(

There are two kinds of market researchA primary and secondary. "econdary research means using published information such as industry profiles trade +ournals newspapers maga'ines census data and demographic profiles. This type of information is available in public libraries industry associations chambers of commerce from vendors who sell to your industry and from government agencies. "tart with your local library. ,ost librarians are pleased to guide you through their business data collection. *ou will be ama'ed at what is there. There are more online sources than you could possibly use. *our chamber of commerce has good information on the local area. Trade associations and trade publications often have e!cellent industryspecific data. 7rimary research means gathering your own data. ;or e!ample you could do your own traffic count at a proposed location use the yellow pages to identify competitors and do surveys or focusgroup interviews to learn about consumer preferences. 7rofessional market research can be very costly but there are many books that show small business owners how to do effective research themselves. In your marketing plan be as specific as possible$ give statistics numbers and sources. The marketing plan will be the basis later on of the allimportant sales pro+ection.

Economics
;acts about your industryA E What is the total si'e of your marketB

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What percent share of the market will you haveB (This is important only if you think you will be a ma+or factor in the market.)

E .urrent demand in target market. E Trends in target marketCgrowth trends trends in consumer preferences and trends in product development. E <rowth potential and opportunity for a business of your si'e. E What barriers to entry do you face in entering this market with your new companyB "ome typical barriers areA o %igh capital costs o %igh production costs o %igh marketing costs o .onsumer acceptance and brand recognition o Training and skills o Dnique technology and patents o Dnions o "hipping costs o Tariff barriers and quotas E -nd of course how will you overcome the barriersB E %ow could the following affect your companyB o .hange in technology o .hange in government regulations o .hange in the economy o .hange in your industry

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Pro#uct
In the Products and Services section you described your products and services as you see them. 8ow describe them from your customers# point of view. ,eatures an# Benefits 9ist all of your ma+or products or services. ;or each product or serviceA E E =escribe the most important features. What is special about itB =escribe the benefits. That is what will the product do for the customerB

8ote the difference between features and benefits and think about them. ;or e!ample a house that gives shelter and lasts a long time is made with certain materials and to a certain design$ those are its features. Its benefits include pride of ownership financial security providing for the family and inclusion in a neighborhood. *ou build features into your product so that you can sell the benefits. What aftersale services will you giveB "ome e!amples are delivery warranty service contracts support followup and refund policy.

Customers
Identify your targeted customers their characteristics and their geographic locations otherwise known as their demographics. The description will be completely different depending on whether you plan to sell to other businesses or directly to consumers. If you sell a consumer product but sell it through a channel of distributors wholesalers and retailers you must carefully analy'e both the end consumer and the middleman businesses to which you sell. *ou may have more than one customer group. Identify the most important groups. Then for each customer group construct what is called a demographic profileA E -ge E <ender E 9ocation

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E E

Income level "ocial class and occupation

E 1ducation E /ther (specific to your industry) E /ther (specific to your industry) ;or business customers the demographic factors might beA E Industry (or portion of an industry) E 9ocation

E "i'e of firm E Guality technology and price preferences E E /ther (specific to your industry) /ther (specific to your industry)

Competition
What products and companies will compete with youB 9ist your ma+or competitorsA (8ames and addresses) Will they compete with you across the board or +ust for certain products certain customers or in certain locationsB Will you have important indirect competitorsB (;or e!ample video rental stores compete with theaters although they are different types of businesses.) %ow will your products or services compare with the competitionB Dse the .ompetitive -nalysis table below to compare your company with your two most important competitors. In the first column are key competitive factors. "ince these vary from one industry to another you may want to customi'e the list of factors.

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In the column labeled $e state how you honestly think you will stack up in customers minds. Then check whether you think this factor will be a strength or a weakness for you. "ometimes it is hard to analy'e our own weaknesses. Try to be very honest here. &etter yet get some disinterested strangers to assess you. This can be a real eyeopener. -nd remember that you cannot be all things to all people. In fact trying to be causes many business failures because efforts become scattered and diluted. *ou want an honest assessment of your firms strong and weak points. 8ow analy'e each ma+or competitor. In a few words state how you think they compare. In the final column estimate the importance of each competitive factor to the customer. 1 H critical$ 5 H not very important.
Table -. Competitive /nalysis
,actor $e Stren)t& Wea%ness Competitor / Competitor B Importance to Customer

Pro#ucts Price 0uality Selection Service Reliability Stability Expertise Company Reputation 1ocation /ppearance

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,actor

$e

Stren)t&

Wea%ness

Competitor /

Competitor B

Importance to Customer

Sales $et&o# Cre#it Policies /#vertisin) Ima)e

8ow write a short paragraph stating your competitive advantages and disadvantages.

Nic&e
8ow that you have systematically analy'ed your industry your product your customers and the competition you should have a clear picture of where your company fits into the world. In one short paragraph define your niche your unique corner of the market.

Strate)y
8ow outline a marketing strategy that is consistent with your niche. Promotion %ow will you get the word out to customersB -dvertisingA What media why and how oftenB Why this mi! and not some otherB %ave you identified lowcost methods to get the most out of your promotional budgetB Will you use methods other than paid advertising such as trade shows catalogs dealer incentives word of mouth (how will you stimulate itB) and network of friends or professionalsB What image do you want to pro+ectB %ow do you want customers to see youB

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In addition to advertising what plans do you have for graphic image supportB This includes things like logo design cards and letterhead brochures signage and interior design (if customers come to your place of business). "hould you have a system to identify repeat customers and then systematically contact themB Promotional Bu#)et %ow much will you spend on the items listed aboveB &efore startupB (These numbers will go into your startup budget.) /ngoingB (These numbers will go into your operating plan budget.) Pricin) 1!plain your method or methods of setting prices. ;or most small businesses having the lowest price is not a good policy. It robs you of needed profit margin$ customers may not care as much about price as you think$ and large competitors can under price you anyway. Dsually you will do better to have average prices and compete on quality and service. =oes your pricing strategy fit with what was revealed in your competitive analysisB .ompare your prices with those of the competition. -re they higher lower the sameB WhyB %ow important is price as a competitive factorB =o your intended customers really make their purchase decisions mostly on priceB What will be your customer service and credit policiesB Propose# 1ocation 7robably you do not have a precise location picked out yet. This is the time to think about what you want and need in a location. ,any startups run successfully from home for a while. *ou will describe your physical needs later in the Operational Plan section. %ere analy'e your location criteria as they will affect your customers.

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Is your location important to your customersB If yes howB If customers come to your place of businessA Is it convenientB 7arkingB Interior spacesB 8ot out of the wayB Is it consistent with your imageB Is it what customers want and e!pectB Where is the competition locatedB Is it better for you to be near them (like car dealers or fast food restaurants) or distant (like convenience food stores)B !istribution C&annels %ow do you sell your products or servicesB 0etail =irect (mail order Web catalog) Wholesale *our own sales force -gents Independent representatives &id on contracts

Sales ,orecast
8ow that you have described your products services customers markets and marketing plans in detail it#s time to attach some numbers to your plan. Dse a sales forecast spreadsheet to prepare a monthbymonth pro+ection. The forecast should be based on your historical sales the marketing strategies that you have +ust described your market research and industry data if available. *ou may want to do two forecastsA 1) a best guess which is what you really e!pect and 6) a worst case low estimate that you are confident you can reach no matter what happens.

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0emember to keep notes on your research and your assumptions as you build this sales forecast and all subsequent spreadsheets in the plan. This is critical if you are going to present it to funding sources.

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"I.

Operational Plan

1!plain the daily operation of the business its location equipment people processes and surrounding environment.

Pro#uction
%ow and where are your products or services producedB 1!plain your methods ofA E E E E E 7roduction techniques and costs Guality control .ustomer service Inventory control 7roduct development

1ocation
What qualities do you need in a locationB =escribe the type of location you#ll have. 7hysical requirementsA E -mount of space

E Type of building E :oning

E 7ower and other utilities -ccessA Is it important that your location be convenient to transportation or to suppliersB =o you need easy walkin accessB What are your requirements for parking and pro!imity to freeway airports railroads and shipping centersB

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Include a drawing or layout of your proposed facility if it is important as it might be for a manufacturer. .onstructionB ,ost new companies should not sink capital into construction but if you are planning to build costs and specifications will be a big part of your plan. .ostA 1stimate your occupation e!penses including rent but also including maintenance utilities insurance and initial remodeling costs to make the space suit your needs. These numbers will become part of your financial plan. What will be your business hoursB

1e)al Environment
=escribe the followingA E 9icensing and bonding requirements E E E E E 7ermits %ealth workplace or environmental regulations "pecial regulations covering your industry or profession :oning or building code requirements Insurance coverage

E Trademarks copyrights or patents (pending e!isting or purchased)

Personnel
E E E E E E 8umber of employees Type of labor (skilled unskilled and professional) Where and how will you find the right employeesB Guality of e!isting staff 7ay structure Training methods and requirements

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E E E E

Who does which tasksB =o you have schedules and written procedures preparedB %ave you drafted +ob descriptions for employeesB If not take time to write some. They really help internal communications with employees. ;or certain functions will you use contract workers in addition to employeesB

Inventory
E E What kind of inventory will you keepA raw materials supplies finished goodsB -verage value in stock (i.e. what is your inventory investment)B

E 0ate of turnover and how this compares to the industry averagesB E "easonal buildupsB

E 9eadtime for orderingB

Suppliers
Identify key suppliersA E E E E 8ames and addresses Type and amount of inventory furnished .redit and delivery policies %istory and reliability

"hould you have more than one supplier for critical items (as a backup)B =o you e!pect shortages or shortterm delivery problemsB -re supply costs steady or fluctuatingB If fluctuating how would you deal with changing costsB

Cre#it Policies
E =o you plan to sell on creditB

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E E E E E E

=o you really need to sell on creditB Is it customary in your industry and e!pected by your clienteleB If yes what policies will you have about who gets credit and how muchB %ow will you check the creditworthiness of new applicantsB What terms will you offer your customers$ that is how much credit and when is payment dueB Will you offer prompt payment discountsB (%intA =o this only if it is usual and customary in your industry.) =o you know what it will cost you to e!tend creditB %ave you built the costs into your pricesB

$ana)in) 2our /ccounts Receivable If you do e!tend credit you should do an aging at least monthly to track how much of your money is tied up in credit given to customers and to alert you to slow payment problems. receivables aging looks like the following tableA
Total /ccounts Receivable /)in) Current 34 !ays 54 !ays 64 !ays Over 64 !ays

*ou will need a policy for dealing with slowpaying customersA E E E When do you make a phone callB When do you send a letterB When do you get your attorney to threatenB

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$ana)in) 2our /ccounts Payable *ou should also age your accounts payable what you owe to your suppliers. This helps you plan whom to pay and when. 7aying too early depletes your cash but paying late can cost you valuable discounts and can damage your credit. (%intA If you know you will be late making a payment call the creditor before the due date.) =o your proposed vendors offer prompt payment discountsB payables aging looks like the following table.
Total /ccounts Payable /)in) Current 34 !ays 54 !ays 64 !ays Over 64 !ays

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"II. $ana)ement an# Or)ani7ation

Who will manage the business on a daytoday basisB What e!perience does that person bring to the businessB What special or distinctive competenciesB Is there a plan for continuation of the business if this person is lost or incapacitatedB If you#ll have more than 10 employees create an organi'ational chart showing the management hierarchy and who is responsible for key functions. Include position descriptions for key employees. If you are seeking loans or investors include resumes of owners and key employees.

Professional an# /#visory Support

9ist the followingA E E E E E E E E &oard of directors ,anagement advisory board -ttorney -ccountant Insurance agent &anker .onsultant or consultants ,entors and key advisors

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"III. Personal ,inancial Statement

Include personal financial statements for each owner and ma+or stockholder showing assets and liabilities held outside the business and personal net worth. /wners will often have to draw on personal assets to finance the business and these statements will show what is available. &ankers and investors usually want this information as well.

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I8.

Startup Expenses an# Capitali7ation

*ou will have many startup e!penses before you even begin operating your business. It#s important to estimate these e!penses accurately and then to plan where you will get sufficient capital. This is a research pro+ect and the more thorough your research efforts the less chance that you will leave out important e!penses or underestimate them. 1ven with the best of research however opening a new business has a way of costing more than you anticipate. There are two ways to make allowances for surprise e!penses. The first is to add a little IpaddingJ to each item in the budget. The problem with that approach however is that it destroys the accuracy of your carefully wrought plan. The second approach is to add a separate line item called contingencies to account for the unforeseeable. This is the approach we recommend. Talk to others who have started similar businesses to get a good idea of how much to allow for contingencies. If you cannot get good information we recommend a rule of thumb that contingencies should equal at least 60 percent of the total of all other start up e!penses. 1!plain your research and how you arrived at your forecasts of e!penses. <ive sources amounts and terms of proposed loans. -lso e!plain in detail how much will be contributed by each investor and what percent ownership each will have.

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8.

,inancial Plan

The financial plan consists of a 16month profit and loss pro+ection a fouryear profit and loss pro+ection (optional) a cashflow pro+ection a pro+ected balance sheet and a breakeven calculation. Together they constitute a reasonable estimate of your companys financial future. ,ore important the process of thinking through the financial plan will improve your insight into the inner financial workings of your company.

-9'$ont& Profit an# 1oss Pro:ection

,any business owners think of the 16month profit and loss pro+ection as the centerpiece of their plan. This is where you put it all together in numbers and get an idea of what it will take to make a profit and be successful. *our sales pro+ections will come from a sales forecast in which you forecast sales cost of goods sold e!penses and profit monthbymonth for one year. 7rofit pro+ections should be accompanied by a narrative e!plaining the ma+or assumptions used to estimate company income and e!penses. 0esearch 8otesA Keep careful notes on your research and assumptions so that you can e!plain them later if necessary and also so that you can go back to your sources when it#s time to revise your plan.

T&ree'2ear Profit Pro:ection ;Optional<

The 16month pro+ection is the heart of your financial plan. The ThreeL*ear 7rofit pro+ection is for those who want to carry their forecasts beyond the first year. /f course keep notes of your key assumptions especially about things that you e!pect will change dramatically after the first year.

Pro:ecte# Cas& ,lo+

If the profit pro+ection is the heart of your business plan cash flow is the blood. &usinesses fail because they cannot pay their bills. 1very part of your business plan is important but none of it means a thing if you run out of cash. The point of this worksheet is to plan how much you need before startup for preliminary e!penses operating e!penses and reserves. *ou should keep updating it and using it afterward. It will enable you to foresee shortages in time to do something

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about themCperhaps cut e!penses or perhaps negotiate a loan. &ut foremost you shouldn#t be taken by surprise. There is no great trick to preparing itA The cashflow pro+ection is +ust a forward look at your checking account. ;or each item determine when you actually e!pect to receive cash (for sales) or when you will actually have to write a check (for e!pense items). *ou should track essential operating data which is not necessarily part of cash flow but allows you to track items that have a heavy impact on cash flow such as sales and inventory purchases. *ou should also track cash outlays prior to opening in a prestartup column. *ou should have already researched those for your startup e!penses plan. *our cash flow will show you whether your working capital is adequate. .learly if your pro+ected cash balance ever goes negative you will need more startup capital. This plan will also predict +ust when and how much you will need to borrow. 1!plain your ma+or assumptions especially those that make the cash flow differ from the Profit and Loss Pro ection. ;or e!ample if you make a sale in month one when do you actually collect the cashB When you buy inventory or materials do you pay in advance upon delivery or much laterB %ow will this affect cash flowB -re some e!penses payable in advanceB WhenB -re there irregular e!penses such as quarterly ta! payments maintenance and repairs or seasonal inventory buildup that should be budgetedB 9oan payments equipment purchases and owners draws usually do not show on profit and loss statements but definitely do take cash out. &e sure to include them. -nd of course depreciation does not appear in the cash flow at all because you never write a check for it.

Openin) !ay Balance S&eet

- balance sheet is one of the fundamental financial reports that any business needs for reporting and financial management. - balance sheet shows what items of value are

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held by the company (assets) and what its debts are (liabilities). When liabilities are subtracted from assets the remainder is owners# equity. Dse a startup e!penses and capitali'ation spreadsheet as a guide to preparing a balance sheet as of opening day. Then detail how you calculated the account balances on your opening day balance sheet. /ptionalA "ome people want to add a pro+ected balance sheet showing the estimated financial position of the company at the end of the first year. This is especially useful when selling your proposal to investors.

Brea%'Even /nalysis
- breakeven analysis predicts the sales volume at a given price required to recover total costs. In other words it#s the sales level that is the dividing line between operating at a loss and operating at a profit. 1!pressed as a formula breakeven isA

&reak1ven "ales

;i!ed .osts 1 >ariable .osts

(Where fi!ed costs are e!pressed in dollars but variable costs are e!pressed as a percent of total sales.) Include all assumptions upon which your breakeven calculation is based.

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8I.

/ppen#ices

Include details and studies used in your business plan$ for e!ampleA E E E &rochures and advertising materials Industry studies &lueprints and plans

E ,aps and photos of location E E ,aga'ine or other articles =etailed lists of equipment owned or to be purchased

E .opies of leases and contracts E 9etters of support from future customers E -ny other materials needed to support the assumptions in this plan E ,arket research studies E 9ist of assets available as collateral for a loan

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8II. Refinin) t&e Plan

The generic business plan presented above should be modified to suit your specific type of business and the audience for which the plan is written.

,or Raisin) Capital

,or Ban%ers E &ankers want assurance of orderly repayment. If you intend using this plan to present to lenders includeA o -mount of loan o %ow the funds will be used o What this will accomplishChow will it make the business strongerB o 0equested repayment terms (number of years to repay). *ou will probably not have much negotiating room on interest rate but may be able to negotiate a longer repayment term which will help cash flow. o .ollateral offered and a list of all e!isting liens against collateral ,or Investors E Investors have a different perspective. They are looking for dramatic growth and they e!pect to share in the rewardsA o ;unds needed shortterm o ;unds needed in two to five years o %ow the company will use the funds and what this will accomplish for growth. o 1stimated return on investment o 1!it strategy for investors (buyback sale or I7/) o 7ercent of ownership that you will give up to investors

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o ,ilestones or conditions that you will accept o ;inancial reporting to be provided o Involvement of investors on the board or in management

,or Type of Business

$anufacturin) E E E E E E 7lanned production levels -nticipated levels of direct production costs and indirect (overhead) costsChow do these compare to industry averages (if available)B 7rices per product line <ross profit margin overall and for each product line 7roductionMcapacity limits of planned physical plant 7roductionMcapacity limits of equipment

E 7urchasing and inventory management procedures E 8ew products under development or anticipated to come online after startup

Service Businesses E "ervice businesses sell intangible products. They are usually more fle!ible than other types of businesses but they also have higher labor costs and generally very little in fi!ed assets. E E E E E What are the key competitive factors in this industryB *our prices ,ethods used to set prices "ystem of production management Guality control procedures. "tandard or accepted industry quality standards.

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E E E E

%ow will you measure labor productivityB 7ercent of work subcontracted to other firms. Will you make a profit on subcontractingB .redit payment and collections policies and procedures "trategy for keeping client base

*i)& Tec&nolo)y Companies E 1conomic outlook for the industry E E E Will the company have information systems in place to manage rapidly changing prices costs and marketsB Will you be on the cutting edge with your products and servicesB What is the status of research and developmentB -nd what is required toA o &ring productMservice to marketB o Keep the company competitiveB E %ow does the companyA o 7rotect intellectual propertyB o -void technological obsolescenceB o "upply necessary capitalB o 0etain key personnelB %ightech companies sometimes have to operate for a long time without profits and sometimes even without sales. If this fits your situation a banker probably will not want to lend to you. >enture capitalists may invest but your story must be very good. *ou must do longerterm financial forecasts to show when profit takeoff is e!pected to occur. -nd your assumptions must be well documented and well argued.

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Retail Business E .ompany image

E 7ricingA o 1!plain markup policies. o 7rices should be profitable competitive and in accordance with company image. E InventoryA o "election and price should be consistent with company image. o Inventory levelA ;ind industry average numbers for annual inventory turnover rate (available in 0,- book). ,ultiply your initial inventory investment by the average turnover rate. The result should be at least equal to your pro+ected first years cost of goods sold. If it is not you may not have enough budgeted for startup inventory. E E E E .ustomer service policiesA These should be competitive and in accord with company image. 9ocationA =oes it give the e!posure that you needB Is it convenient for customersB Is it consistent with company imageB 7romotionA ,ethods used cost. =oes it pro+ect a consistent company imageB .reditA =o you e!tend credit to customersB If yes do you really need to and do you factor the cost into pricesB