PROFESSIONAL

SERVICES
Business Plan
 TABLE OF CONTENTS
Introduction......................................................................
1. Executive Summary.....................................................
2. Company Overview.....................................................
3. Business Description...................................................
4. Market Analysis...........................................................
5. Operating Plan.............................................................
6. Marketing and Sales Plan............................................
7. Financial Plan..............................................................
Appendix..........................................................................
Instructions for Getting Started with
Estimated Start-Up Costs............................17
Instructions for Getting Started on Profit &
Loss Projections..........................................19
 INTRODUCTION
Creating an extensive business plan is unnecessary for most businesses to get started.
However, creating a short business plan offers several benefits that more than outweigh the
investment of time:
 The process of thinking and writing the plan provides clarity for the business.

 If capital is needed from outside sources, investors want to see a plan that demonstrates a
solid understanding and vision for the business.

 The plan will help prioritize tasks that are most important.

 With growth, the plan offers a common understanding of the vision to new leaders.

A simple business plan for a start-up service company can be completed rather quickly.
Keeping in mind who the intended audience is, write simply. The plan needs to be
understandable, readable, and realistic.
This template is organized into seven sub-plans or sections to be completed.
1. Executive Summary

2. Company Overview

3. Business Description

4. Market Analysis

5. Operating Plan

6. Marketing and Sales Plan

7. Financial Plan

It is recommended to complete the Executive Summary last, after all of the other sections have
been completed. As information is filled in, from the Company Overview to the Financial Plan,
the writing should tell the story of the motivation and vision behind the business. Be sure to
include what will make the business successful, how success will be achieved, and how
success will be measured.
It is important to keep the business plan updated in order to see progress, celebrate success,
and adjust where issues arise. This is best done on a quarterly, if not monthly, basis.

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1. EXECUTIVE SUMMARY
The Executive Summary should be written last

after the remainder of the plan has been finished. It is an ove

If the business requires outside investment or external investors, include how much is needed,
how it will be used, and how it will make the business more profitable. Think of this section as
the first thing a potential investor reads, thus, it must capture their interest quickly.
Suggested headings to organize this business plan include the following.
 Opportunity: What problem will the business solve?

 Mission: What problem will the business solve?

 Solution: How will the service uniquely solve the problem identified?

 Market focus: What market and ideal customers will the business target?

 Competitive advantage:
How does the business intend to succeed against its competitors?

 Ownership: Who are the major stakeholders in the company?

 Expected returns:
What are the key milestones for revenue, profits, growth, and customers?

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2. COMPANY OVERVIEW
The Company Overview is a brief summary of the intended business, including what it uniquely
delivers, the mission, how it got started, market positioning, operational structure, and financial
goals. After reviewing this section, the reader should have a broad understanding of what the
business is setting out to do and how it is organized.
This section is not meant to be lengthy. Keep it short and succinct. This is the snapshot of the
business. The type of business will determine which of the following sections will be required
for the business plan. Only include what is needed to properly represent the business and
remove anything else.
 Company summary:

This is the introductory section to the company, also known as the ‘elevator pitch’ of what the co

 Mission statement:
This is a concise statement on the guiding principles of the company and what the company aims

 Company history:
This provides the back story, especially the personal story, of why the business was founde

 Markets and services:

This outlines the target market and related needs that the company will address. Includ

 Operational structure:
This describes the operational details of the business. List any potential employees ne

 Financial goals:
This describes the start-up capital needed, projected revenue and profits, forecast, and budget

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3. BUSINESS DESCRIPTION
This section will first frame the business opportunity and should answer the question: what
problem(s) is the company trying to solve? Use a case example to describe the customers’
pain point and how it is solved today. If the business’ service addresses something the market
has yet to identify as a problem (for instance, a new mobile app or a new clothing line), then
also describe how the business’ solution reduces stress, saves money, or brings joy to the
customer.
After framing the opportunity, describe the service in detail and how it is the solution the
business offers, how it solves that problem, and what benefits customers will receive.
This section also describes in more detail how the services will be rendered and the pricing
structure (e.g., fixed rate versus an hourly fee). Describe how the company plans to
differentiate from its competitors. What is the target market and how can the customer
capitalize on your unique offering?
Depending on the type of business, the following sections may or may not be necessary. Only
include relevant sections and remove everything else.
 Opportunity:

Describe the current market for the business’ offered service. At a high level, what is the market and

 Product overview:
Describe the service offerings of the business in as much detail as possible. If it is effectiv

 Key participants:
Identify any strategic partners in the business, such as critical suppliers, distributors, referra

 Pricing:
Provide pricing of the service, gross margin projects, and upgrade paths. Describe why the company’s

o Note the difference between working hours and billable hours. All working hours are not
billable. If the business has employees with differing skill levels (for example, in a law

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 practice, there are associates, paralegals, lawyers, partners, etc.), indicate the various
billing rates.
o Communicate rates clearly to clients and customers. If there are potential additional
fees which will be passed on to clients or customers, define and establish them up front.

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4. MARKET ANALYSIS
The Market Analysis provides the reader with an understanding of how well the business
knows and understands its market and if it is big enough to support the business objectives.
This section provides an overview of the industry that the business will participate in. As this
section is narrowed down to the ideal customer based on the business strategy, the plan will
define the target market. A detailed description and sizing of the target market will help the
reader understand the market value the business is pursuing (the number of potential
customers multiplied by the average revenue for the product or service).
In defining the target market, the plan will identify key elements such as geographic location,
demographics, buyer characteristics, the target market's needs, and how market needs are
currently being met. If there are any direct competitors, explain how the company’s service
compares to the competitors in terms of solving the consumers’ problems.
This section may also include a Strengths, Weaknesses, Opportunities, and Threats (SWOT)
Analysis as necessary, to better assess the business’ position against the competition.
Depending on the type of business, the following sections may or may not be necessary. Only
include what is need and remove everything else.
 Industry type:

Begin with the broader descriptions of the market opportunity. For instance, if the intended bus

 Market segmentation:

This section defines the main market segments and those the business is targeting now

 Competition:
All businesses compete in one way or another. It may be with specific, direct competitors or it m

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 SWOT analysis:

A SWOT analysis may be included by completing the boxes below to assess the business’ current stre

STRENGTHS WEAKNESSES
 Advantage  Disadvantages
 Capabilities  Gap in capabilities
 Assets, people  Cash Flow
 Experience  Suppliers
 Financial reserves  Experience
 Value proposition  Areas to improve
 Price, value, quality  Causes of lose sales

SWOT
OPPORTUNITIES THREATS
 Areas to improve  Economy movement
 New segments  Obstacles faced
 Industry trends  Competitor actions
 New products  Political impacts
 New innovations
 Key partnership  Environmental effects
 Loss of key staff
 Market demand

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5. OPERATING PLAN
Additionally, it is necessary to outline how the company currently and will continue to develop
and maintain a loyal customer base. This section includes management responsibilities with
dates and budgets and making sure results can be tracked. What are the envisioned phases
for future growth and the capabilities that need to be in place to realize growth?
The operating plan describes how the business works. Depending on the type of the business,
important elements of this plan should include how the company will bring services to market
and how it will support customers. It is the logistics, technology, and basic blocking and
tackling of the business.
Depending on the type of business, the following sections may or may not be necessary. Only
include what is needed and remove everything else. Remember: try to keep the business plan
as short as possible. Excessive detail in this section could easily make the plan too long.
 Order fulfillment:
Describe the company’s procedures for delivering services to its customers. As a service co

 Payment:
Describe the standard payment terms and the payment methods accepted. Describe the pricing plans

 Technology:
If technology is critical to the business, whether it is part of the service offering or is fundamenta

 Key customers:
Identify any customers that are important to the success of the business due to a partnership, v

 Key employees and organization:

Describe unique skills or experiences that are required of the current team. If necessary,

 Facilities:
Describe the type of business facility, whether leased, owned, or a shared business premises. Provide

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6. MARKETING AND SALES PLAN
Promoting the business, whether through generating leads or traffic to a website or store, is
one of the most important functions of any business. In this section of the plan, provide details
of intended marketing of the business. Describe the key messages and channels used for
generating leads and promoting the business. This section should also describe any sales
strategy. Depending on the type of business, the following sections may or may not be
necessary. Only include what is needed and remove everything else.
 Key messages:
Describe the key messages that will elevate services in the target customers’ eyes. If there is samp

 Marketing activities:
Which of the following promotion options provide the company the best chance of prod

o Media advertising (newspaper, magazine, television, radio)

o Direct mail
o Telephone solicitation
o Seminars or business conferences
o Joint advertising with other companies
o Word of mouth or fixed signage
o Digital marketing such as social media, email marketing, SEO, or blogging
o Provide limited free consultations (such as free job pricing for contractors, free
landscaping consultation for landscapers, or free pricing opinions for real estate agents)
o Sponsor local sports teams or other community events
o Give free informational talks either at the business offices or for local businesses
offering complementary services (such as a real estate agent providing seminars about
preparing a home to bring to market)
o Do free work for local non-profits (such as an ad agency designing a local farmer’s
market’s website for free)
 Sales strategy:
If needed, what will be the sales approach? Will there be full-time commissioned sales people

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7. FINANCIAL PLAN
Creating a financial plan is where all of the business planning comes together. Up to this point,
the target market, target customers, and pricing have all been identified. These items, along
with assumptions, will help estimate the company’s sales forecast. The other side of the
business will be what expenses are expected. This is important on an ongoing basis to see
when the business is profitable. It is also important to know what expenses will need to be
funded before customer sales, or the cash they generate, is received.
At a minimum, this section should include estimated start-up costs and projected profit and
loss, along with a summary of the assumptions being made with these projections.
Assumptions should include initial and ongoing sales, along with the timing of these inflows.
 Projected start-up costs:

The table below shows a sample of ongoing and one-time cost items that the busin

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 START-UP COSTS
Your Office-Based Agency January 1, 20XX
COST ITEMS MONTHS COST/ MONTH ONE-TIME COST TOTAL COST
Advertising/Marketing 3 $300 $2,000 $2,900
Employee Salaries* 4 $500 $2 $2,002
Employee Payroll Taxes and Benefits 4 $100 $1,500 $1,600
Rent/Lease Payments/Utilities 4 $750 $2,500 $5,500
Postage/Shipping 1 $25 $25 $50
Communication/Telephone 4 $70 $280 $560
Computer Equipment $0 $1,500 $1,500
Computer Software $0 $300 $300
Insurance $0 $60 $60
Interest Expense $0 $0 $0
Bank Service Charges $0 $0 $0
Supplies $0 $0 $0
Travel & Entertainment $0 $0 $0
Equipment $0 $2,500 $2,500
Furniture & Fixtures $0 $0 $0
Leasehold Improvements $0 $0 $0
Security Deposit(s) $0 $0 $0
Business Licenses/Permits/Fees $0 $5,000 $5,000
Professional Services - Legal, Accounting $0 $1,500 $1,500
Consultant(s) $0 $0 $0
Inventory $0 $0 $0
Cash-On-Hand (Working Capital) $0 $1,000 $1,000
Miscellaneous $0 $2,000 $2,000
ESTIMATED START-UP BUDGET $26,472
*Based on part-time employees. This may change once you hit your growth benchmark.

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Projected profit and loss model:

The model below shows a sample of the projections a small business is forecasting for their first 12 months of oper

START-UP COSTS
Your Office-Based Agency January 1, 20XX
REVENUE JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
$16,00 $22,50 $216,42
Estimated Sales $5,000 $13,000 $7,000 $14,500 $16,400 $23,125 $24,549 $22,000 $25,000 $27,349
0 0 3
Less Sales Returns & ($1,600
$0 ($350) $0 ($206) ($234) $0 $0 ($280) ($1,200) $0 ($2,400) ($6,270)
Discounts )
Service Revenue $0 $0 $0 $0 $0 $250 $350 $100 $0 $0 $1,245 $1,360 $3,305
Other Revenue $0 $0 $0 $0 $0 $0 $0 $1,500 $0 $0 $0 $0 $1,500
$16,00 $22,85 $214,95
Net Sales $5,000 $12,650 $6,794 $14,266 $16,650 $24,445 $23,349 $20,400 $26,245 $26,309
0 0 8
Cost of Goods Sold* $2,000 $5,200 $6,400 $2,800 $5,800 $6,560 $9,000 $9,250 $9,820 $8,800 $10,000 $10,940 $86,569
$13,85 $128,38
Gross Profit $3,000 $7,450 $9,600 $3,994 $8,466 $10,090 $15,195 $13,529 $11,600 $16,245 $15,369
0 9
EXPENSES JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
Salaries & Wages $2,500 $2,500 $3,500 $5,000 $5,000 $5,000 $8,000 $9,000 $9,000 $9,000 $9,000 $9,000 $76,500
Marketing/Advertising $400 $450 $450 $450 $900 $900 $900 $900 $900 $900 $1,200 $1,200 $9,550
Sales Commissions $250 $650 $800 $350 $725 $820 $1,125 $1,156 $1,227 $1,100 $1,250 $1,367 $10,821
Rent $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $15,000
Utilities $250 $150 $200 $200 $200 $250 $250 $250 $200 $200 $250 $250 $2,650
Website Expenses $175 $175 $175 $175 $175 $175 $175 $175 $175 $175 $225 $225 $2,200
Internet/Phone $110 $110 $110 $110 $110 $110 $110 $110 $110 $110 $110 $110 $1,320
Insurance $165 $165 $165 $165 $165 $165 $165 $165 $165 $165 $165 $165 $1,980
Travel $100 $0 $0 $250 $0 $0 $0 $0 $675 $800 $0 $0 $1,825
Legal/Accounting $1,200 $0 $0 $450 $0 $500 $0 $0 $0 $0 $0 $250 $2,400
Office Supplies $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $1,500
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$12,10 $125,74
Total Expenses $6,525 $5,575 $6,775 $8,525 $8,650 $9,295 $13,131 $13,827 $13,825 $13,575 $13,942
0 6
($2,225
Income Before Taxes ($3,525) $1,875 $2,825 ($4,531) ($184) $795 $1,750 $2,064 ($298) $2,670 $1,427 $2,643
)

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Income Tax Expense ($529) $281 $424 ($680) ($28) $119 $263 $310 ($45) ($334) $401 $214 $396
($1,891
NET INCOME ($2,996) $1,594 $2,401 ($3,851) ($156) $676 $1,488 $1,754 ($253) $2,270 $1,213 $2,246
)
*In the service industry, Cost of Goods Sold is the monetized value of the time spent on the client.

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APPENDIX
START-UP COSTS
Office-Based Agency Date

COST ITEMS MONTHS COST/ MONTH ONE-TIME COST TOTAL COST

Advertising/Marketing

Employee Salaries

Employee Payroll Taxes and Benefits

Rent/Lease Payments/Utilities

Postage/Shipping

Communication/Telephone

Computer Equipment

Computer Software

Insurance

Interest Expense

Bank Service Charges

Supplies

Travel & Entertainment

Equipment

Furniture & Fixtures

Leasehold Improvements

Security Deposit(s)

Business Licenses/Permits/Fees

Professional Services - Legal, Accounting

Consultant(s)

Inventory

Cash-On-Hand (Working Capital)

Miscellaneous

ESTIMATED START-UP BUDGET

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Instructions for Getting Started with Estimated Start-Up
Costs
Determining a business' startup costs is critical to ensure enough cash is available to begin
business operations within the budgeted time frame as well as within the cost budget. Startup
costs typically fall within two categories: monthly costs and one-time costs. Monthly costs
cover costs that occur each month during the startup period, and one-time costs are costs that
will be incurred once during the startup period.
Steps for preparation:
 Step 1: Enter the company name and the date this estimate is being prepared.

 Step 2:
Enter the number of months and the monthly cost for each cost item that is recurring. For one-time cost

 Step 3:
Once all of the costs are entered, review the individual items and total amount to see where the budget c

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 START-UP COSTS
Office-Based Agency Date
REVENUE JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
Estimated Product Sales
Less Sales Returns & Discounts
Service Revenue
Other Revenue
Net Sales
Cost of Goods Sold
Gross Profit
EXPENSES JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
Salaries & Wages
Marketing/Advertising
Sales Commissions
Rent
Utilities
Website Expenses
Internet/Phone
Insurance
Travel
Legal/Accounting
Office Supplies
Interest Expense
Other 1
Total Expenses
Income Before Taxes
Income Tax Expense
NET INCOME
* In the service industry, Cost of Goods Sold is the monetized value of the time spent on the client.

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21
Instructions for Getting Started on Profit & Loss
Projections
Completing projections for Profit and Loss of a new company is a good exercise to understand
and communicate when the company will begin to break even and see how sales and profits
will grow. The top portion of the model to the left, Revenue, is a good way to forecast sales,
month by month for the first year. The lower portion then applies estimated expenses for the
same period of time to derive the business' profitability.
Steps for preparation:
 Step 1: Enter the company name and the date this projection is being prepared.

 Step 2:

For each month, beginning in January or whenever the start is estimated, enter the expected sales to be.

 Step 3:
For each month, enter the estimated salaries, marketing, utilities, and other items that are projected.

 Step 4:
Once all of the costs have been entered, review the individual items and total amount to see where proje

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