It should be noted that there is no special software required to use these templates. All business plans come in Microsoft Word and Microsoft Excel format. Each business plan features:

• Excecutive Summary
• Company and Financing Summary
• Products and Services Overview
• Strategic Analysis with current research!
• Marketing Plan
• Personnel Plan
• 3 Year Advanced Financial Plan
• Expanded Financial Plan with Monthly Financials
• Loan Amortization and ROI Tools
• FREE PowerPoint Presentation for Banks, Investors, or Grant Companies!

1.0 Executive Summary

The purpose of this free business plan is to raise $100,000 for the development of a business brokerage and mergers and acquisitions consulting firm while showcasing the expected financials and operations over the next three years. The Business Brokerage, Inc. (“the Company”) is a New York based corporation that will provide business brokering and M&A consulting to customers in its targeted market. The Company was founded in 2008 by John Doe.

1.1 Products and Services

The Company’s primary business will be to act as an intermediary between business owners and potential buyers to affect a sale of the client’s business. The Business Brokerage will receive a 10% commission (from the total sales price) for each successful transaction completed. On behalf of its business client, the Company will also source and manage third party valuations for its business selling clients. It is imperative to establish a fair market value for a business that is to be sold. The Business Brokerage will receive a 30% gross margin from each dollar of valuation revenue generated. The third section of the free business plan will further describe the services offered by the Business Brokerage.

1.2 The Financing

Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This free business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.

1.3 Mission Statement

It is the goal of the Business Brokerage to develop a business that will act as a business intermediary for a number of small and medium sized business owners that are looking to quickly and cost efficiently sell their established companies to third parties. At all times Management will act as a responsible fiduciary agent of the client, and will work tirelessly to place a buyer with our selling client.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the business intermediary industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.

1.5 Sales Forecasts

Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.

1.6 Expansion Plan

The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target small and medium sized business owners within the target market.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Business Brokerage, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, the Business Brokerage requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:

2.3 Investor Equity

Mr. Doe is not seeking an investment from a third party at this time.

2.4 Management Equity

John Doe owns 100% of the Business Brokerage, Inc.

2.5 Exit Strategy

If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.

3.0 Products and Services

Below is a description of the business brokering and valuation services offered by the Business Brokerage.

3.1 Business Brokerage Services

The primary function of the Business Brokerage is to act as a selling agent for business owners looking to divest their companies. The brokerage will act in a general capacity with the ability to sell any business to a third party investor, business owner, or private equity firm. The Company will receive a 10% commission on each dollar of the business’s sale up to $1,000,000. From that point, the Company will use a sliding scale that will generate 8% on the second million dollars of value, 6% for the third million, 4% for the fourth million, 2% of the fifth million, and 1% of each dollar thereafter.

3.2 Third Party Valuations

Before a client’s company is marketed for sale, Management will hire a third party valuation expert or certified public accountant to perform a full valuation and opinion for the expected sales price of a business. This will provide both sellers and buyers with a complete examination of the business, and a value for negotiation. The third party valuation experts chosen by management will have specific industry expertise.In this section of the free business plan, you should further describe the products and services that you intend to offer to your customers. If you need to add more product categories, please consult the instructions that were included in the BizPlanDB.com zip file.

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the business brokering industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is moderate. The meltdown of the sub prime mortgage market coupled with increasing gas prices has led many people to believe that the US is on the cusp of an economic recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows.

4.2 Industry Analysis

For every business sold in the United States, business brokers affect approximately 10% of the aggregate transactions. Among companies that are listed for sale by owner, the success rate among sellers is only 20%. Among business brokerages, a listing has an 80% chance of being sold. This is primarily attributed to the business owner’s inability to market the business through proper channels. In the United States, there are approximately 5,000 companies that act in a business brokerage capacity. Before starting a new brokerage, a company must establish its license in the jurisdiction from which it will operate. Each state has different rules pertaining to the business brokerage industry, with some states requiring no registration to certain states (such as California) requiring several licenses and regular disclosure of transactions. The Business Brokerage will have an attorney file all necessary licenses and papers for each new jurisdiction that it operates.

4.3 Customer Profile

In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.

4.4 Competitive Analysis

This is one of the sections of the free business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.

5.0 Marketing Plan

The Business Brokerage intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Business Brokerage.

5.1 Marketing Objectives

• • Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.

• • Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth.

• • Establish relationships with other business brokerages.

5.2 Marketing Strategies

The business intends to use a number of marketing strategies to not only promote the acquisition of new clients, but all to promote sales of client’s businesses. Management intends to frequent a number of trade shows specifically geared towards specific industries. This will generate interest among business owners that are seeking to divest their established businesses to third parties. These tradeshows will feature a number of take-away sales brochures and information literature about the Business Brokerage, and its ability to quickly sell a client’s business.

5.3 Pricing

In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the free business plan should not span more than 1 page.

6.0 Organizational Plan and Personnel Summary

6.1 Corporate Organization

6.2 Organizational Budget

In this section of the business plan, you should write a two to four paragraph biography about your work experience, your education, and your skill set. For each owner or key employee, you should provide a brief biography in this section.

7.0 Financial Plan

7.1 Underlying Assumptions

• • The Business Brokerage will have an annual revenue growth rate of 16% per year.

• • The Owner will acquire $100,000 of debt funds to develop the business.

• • The loan will have a 10 year term with a 9% interest rate.

7.2 Sensitivity Analysis

The Company’s revenues are moderately sensitive to changes in the overall economy. In times of prosperity, business owners may seek to divest businesses that have grown quickly and now have a sizable valuation coupled with a significant increase of owner’s equity. In times of economic recession, business owners may keep existing businesses that provide a predictable and stable stream of income.

7.3 Source of Funds

7.4 General Assumptions

7.5 Profit and Loss Statements 

7.6 Cash Flow Analysis

7.7 Balance Sheet

7.8 General Assumptions

7.9 Business Ratios

Expanded Profit and Loss Statements

Expanded Cash Flow Analysis