Chapter X

BUSINESS PLAN QUESTIONNAIRE

Juan A. Moriano y Francisco J. Palací

1. INTRODUCTION

Writing a business plan is not an easy task and it often turns out to be difficult putting on a paper the main ideas for your company. Therefore we consider the following questionnaire very useful for every entrepreneur who has a great business idea and wants to create his or her own company project.

The subject of this questionnaire is to obtain the necessary information that later on will be used to write the plan. At first, it may look difficult to fill in all the fields, but do not worry, try to get all the information that will be important when you are ready to start writing the plan.

2. PREVIOUS HISTORY

Information in this part will later help us with the developing of the broad summary and with the description of the business project.

1. Why have you decided to create a new company?
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2. How did you come up with the business idea?
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3. What are the main goals of your business project?
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4. What is the current state of the business project with regard to the objectives?
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3. PROJECT PROMOTERS

In this part, you have to write one by one the entrepreneurs who have created the new company emphasizing in which part they have contributed in the realization of the objectives.

3.1. Personal Information

Name: ..........................................................................................................

Address : ...........................................................................................................................

Age: ................................................. Marital Status: ........................................................

3.2. Professional Information.

1. Education:
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2. Work Experience:
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3. Experience or previous knowledge related to the business sector in which you want to set up the company:
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4. Experience or previous knowledge as an entrepreneur:
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4. DESCRIPTION OF THE PRODUCT OR SERVICE

This part is about the description of the product, service or business activity in a very clear way, paying special attention to the possible differences between your new product or service compared with the existing ones.

1. Indicate briefly what the activity of your company will be and why you have chosen it:
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2. Specify what products or services your company will sell:

   a ................................................. d ..............................................

   b ................................................. e ..............................................

   c .................................................. f ...............................................

3. Does the product or the service have any special characteristics which make them different from those of the competitors? Indicate them.:
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4. Describe the necessities that the product or service fulfils:
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5. MARKET STUDY

The business project is located in a given environment that you should previously study focusing on: the clients, the competence and the suppliers. All these elements can strengthen or threaten the activity development and you should therefore get the information to secure the product or service.

1. Point out the main characteristics of the market: size, development, market type (Ex. Fragmented or concentrated) and sector:
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2. Indicate who will be the future clients and specify their characteristics:
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3. Where are my clients located? (in the neighbourhood, in the whole city, in another municipality, in the Autonomous Community, in the whole country, etc.)
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4. Who are my competitors? What is the size of their companies? What are their strengths and weaknesses?
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5. How is the market share distributed between the different market players.
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6. What are the products and the services of the competitors? What makes my product different? How can I avoid any imitation of my products or services?
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7. How do my rivals compete: prices, product quality, sales, service, etc.?
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8. How do my potential clients see the competition? Are these clients loyal to a given company? Are the clients satisfied with the service of the competitors? What is their main complain?
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9. What problems can cause a new market competitor? How is going to react the competition to my entrance in the market? Will other companies or entrepreneurs follow my initiative?
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6. MARKETING PLAN

One of the main objectives of the business plan is to define the image, the position of the company, the communication policy and the product or service distribution according to the market conditions. Therefore the identification of the commercial strategies that follow requires the elaboration of a marketing plan, which contains at least the following aspects.

6.1. SWOT Analysis

Like we pointed out in the previous chapter, it is good to make the following exercise to think over the company position in the market, through an analysis of the internal weaknesses and external threats as well as the internal strengths and the opportunities of the sector.

INTERNAL ANALYSIS	Company weaknesses ..................................... ..................................... .....................................	Company strengths ..................................... ..................................... .....................................
EXTERNAL ANALYSIS	Environmental threats ..................................... ..................................... .....................................	Environmental opportunities ..................................... ..................................... .....................................

6.2. Product Policy

• Bottling or packing (if needed) that will define the offered product:
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• Design:
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• Labelling:
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• Quality:
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• Trademark:
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6.3. Price policy

1. What is the price chosen to sold the products or services?

   a ................................................. d ............................................

   b ................................................. e ............................................

   c .................................................. f .............................................

2. What is the profit margin for one product or service, after having paid all the costs?

   a ................................................. d .................................................

   b ................................................. e .................................................

   c .................................................. f .................................................

3. What will be the payment terms?
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6.4. Distribution policy.

1. How will these products or services be sold? What distribution channels are we going to use (wholesale, retail, warehouse, delivery, distributors, sales network, etc.)?
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2. Is there any mediator between the new company and the final consumer? How will you deal with the mediators?
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6.5. Communication Policy.

1. What will be the name of the company? Why?
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2. What will be the corporate image symbol that will identify the company?

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3. What actions will be planned to promote the company, service or product? (Indicate the resources, medium and messages)
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7. PRODUCTION AND TECHNICAL RESOURCES

In this chapter, you will find the manufacturing process of the goods and products, the services of the company activities.

1. Indicate the geographic localization of the company with its facilities:
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2. What are the characteristics of the premises needed by your company?
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3. RList the resources of the materials that will require the company to develop its activity (installations, equipment, furniture, transport, etc)
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4. Indicate if you will have to buy any type of raw material or substance? What sorts? What will be your investment in each of them in order to start your activity? Who are the suppliers? What will be the payment terms?

8. ORGANIZATION AND HUMAN RESOURCES

Not only the technical resources are important but also the Human Resources (HR) Therefore we should describe the job positions and the organization in the company.

Define every job position necessary to set up the company.

1. Job:
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2. Functions/responsibilities:
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3. Profile of the candidate:
   Qualifications:
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   Specific knowledge:
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   Work experience:
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   Competence:
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4. Indicate how many people will work in the company and what their job positions will be? Indicate how many partners and how many employees will have the company?
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5. Will you do outsourcing for a special service?
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9. LEGAL FORM

The election of the most suitable legal form for your business is a preferential question and generally it is the same as deciding if you will be self-employed or if it will be a company.

1. What type of company will you create (individual entrepreneur, private limited company, limited company, cooperation, etc.)?
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2. Do you know the law with regards to the activity you will develop (setting up authorizations and installations, environmental and noise policy, packing, waste policy, securities, etc.)? Indicate if there is any special one:
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10. ECONOMIC AND FINANCIAL STUDY

An economic and financial analysis of the business plan allows the entrepreneur or entrepreneurs to know the project viability and become aware of the investment they need to change a business idea into a profitable company.

10.1. Initial Investment

CONCEPT	INVESTMENT
Setting up expenses: expenses (permits, licenses, Social Security) loan formality, counselling and public promotion of the company. Tangible fixed assets: buildings, installations (electricity, gas, plumbing, network system) machinery, equipment, furniture, computer team, transport elements. Intangible assets: development and innovation expenses, industrial property expenses, patents, trademark, transfer rights, computer software, etc. Permanent financial investments: shares in companies of the group, deposits and long term financing.
TOTAL FIXED ASSETS:
Stocks - Inventory. Receivable accounts. Payable accounts. Cash.
TOTAL CURRENT ASSETS:
TOTAL INITIAL INVESTMENT:

10.2. Financing

CONCEPT	AMOUNT
Personal resources: Share stock: Subsidy: Other resources: Short term debts (credits): Long term debts (loans):
TOTAL FINANCIAL RESOURCES

10.3. Cash forecast

CONCEPT	PERIOD
	1	2	3	4	5	6	7	8	9	10	11	12
A. INITIAL BALANCE SHEET
Collections: Sales Disinvestments Capital Subsidies Loans Others
B. TOTAL COLLECTIONS
Payment: Suppliers Investments Rents Repairs and maintenance Professional services Transports Bank services Advertising and Promotion Supplies Taxes Wages Social Security Financial expenses Investments Debt amortization Others
C. TOTAL PAYMENTS
D. NET BALANCE (B-C)
E. FINAL BALANCE(A+D)

10.4. Profits and losses account

CONCEPT	PERIOD
	Year 1	Year 2	Year 3
Incomes Sales Subsidy Financial income Other operating incomes
A. TOTAL INCOMES
Expenses: 1. Purchases Goods for resales Raw materials Stocks changes 2. Services Innovation and development expenses Rents Reparation and maintenance Independent professional services Transport Insurance premium Bank services Advertising, promotion and HR Supplies Other services 3. Taxes Taxes, contributions y fees (except company tax or profit tax) Adjustments Value Added Tax (VAT) 4. Staff Expenses Wages Social Security 5. Financial expenses Interest Sales Discounts Other financial expenses 6. Amortization Setting up expenses Fixed assets
B. TOTAL EXPENSES
C. GROSS MARGIN
D. RESULTS BEFORE TAXES (A-B)
E. COMPANY TAXES(OR PROFIT TAXES)
F. RESULT (D-E)