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 business plan is to raise $600,000 for the development of a private oil business while showcasing the expected financials and operations over the next three years. Oil Company, Inc. (“the Company”) is a New York based corporation that will extract oil from land leases within United States. The Company was founded by John Doe.

1.1 Products and Services

As stated above, the Company intends to acquire land leases on properties known to have oil deposits. The business will then develop facilities on these properties with the intent to extract and distribute oil for sale onto the open market. The initial capital sought in this business plan will allow the business can acquire its first land lease while concurrently sourcing the equipment needed to operate a moderate sized oil extraction operation. It should be noted that at all times, the business will comply with all applicable federal, state, and local laws (including OSHA) in order to ensure the safety of all employees working for the Oil Company. The third section of the business plan will further describe the operations conducted by the Oil Company.

1.2 The Financing

At this time, Mr. Doe is seeking $600,000 of private funds for the development of the Company’s oil extraction operations. Tentatively, Management is seeking to sell a 40% interest in the business in exchange for the capital sought in this business plan. The financing will be used for the following: • Development of the Company’s initial Oil Extraction location. • Financing for the first six months of operation. • Capital to purchase equipment for oil extraction.

1.3 Mission Statement

The Oil Company’s mission is to cost effectively extract oil from known deposits with the intent to sell the refined oil the open market.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of exploration experience. 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. As the business becomes profitable it will make substantial reinvestments into the Company’s land lease acquisition infrastructure. Additionally, the Company may seek to acquire additional land leases on proven grounds for oil extraction.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Oil Company, Inc. The business is registered as a for profit corporation in the State of New York.

2.2 Required Funds

At this time, the Company requires $600,000 of equity funds. Below is a breakdown of how these funds will be used:

2.3 Investor Equity

At this time, Mr. Doe is seeking to sell a 40% interest in the business in exchange for the capital sought in this business plan. The investor(s) will receive a seat on the board of directors and a regular stream of dividends starting in the first year of operations.

2.4 Management Equity

After the requisite capital is raised, Mr. Doe will retain a 60% ownership interest in the business.

2.5 Exit Strategy

The Management has discussed and planned for three possible exit strategies. The first strategy would be to sell the Company to a larger entity at a significant premium. Since, the oil extraction industry maintains a moderately low risk profile once the business is established; the Management feels that the Company could be sold for ten to fifteen times earnings. The second exit scenario would entail selling a portion of the Company via an initial public offering (or “IPO”). After a detailed analysis, it was found that comparable companies sell for ten to fifteen times earnings on the open market. However, taking a company public involves significant legal red tape. Oil Company, Inc. would be bound by the significant legal framework of the Sarbanes-Oxley Act in addition to the legal requirements set forth in form S1 of the Securities and Exchange Commission. The Company would also have to comply with the Securities Act of 1933 and the Exchange Act of 1934. The last exit scenario would involve the use of a private placement memorandum to raise additional capital from private sources. This is also a significantly expensive process that requires the assistance of both an experienced securities law firm and an investment bank. Funds would be raised from private equity and merchant banking sources in exchange for a percentage of the Company’s stock.

3.0 Products and Services

As stated in the executive summary, the Company intends to operate in an oil extraction capacity. Prior to the onset of operations, Mr. Doe will have acquired a land lease on a property that is known to have oil deposits. At this time, it is unclear as to the method that the Company will use in order to extract oil. The most profitable method of exacting oil would be to lease an existing facility with the intent to extract deposits from the underlying soil. This manual method of precious oil acquisition would provide the greatest return on investment for the business. The Company, depending on its land lease, may engage in deep oil extraction if the land is known to have a significant amount of oil/natural gas that is buried deep within the ground. Mr. Doe is also sourcing the necessary equipment so that the business can immediately begin its operations once the land lease has been acquired. The facility will also have all of the necessary chemical treatment to allow the business to distribute its oil deposits directly into the open market.

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the oil extraction 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 a double dip economic recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. However, oil companies operate with great economic stability as it is a product that is in continued demand. This is especially true in today’s economic environment as inflation has pushed the price of oil substantially over the last 12 months. As long as oil prices continue to rise, the business should have no issues producing a continuous profit from its extraction operations.

4.2 Industry Analysis

Localized oil extraction is a $3 billion dollar a year business in the United States. Within the industry there are over 200 domestic providers of oil extraction operations that operate within 20 states. The industry employs more than 10,000 people and provides adjusted annualized payrolls in excess of $500,000,000 dollars. The growth rate of this industry has been tremendous with the recent resurgence of inflation. The prices of oil and related energy products have increased substantially as investors have sought the safe haven of commodities in lieu of the falling value of the dollar. This demand is expected to remain strong in the face of inflationary pressures.

4.3 Customer Profile

As Oil Company, Inc. intends to sell its oil directly to wholesalers in the open market, is it difficult to determine the “average customer” of the business. Any company engaged in the buying and selling of energy products is a potential buyer for the Company.

4.4 Competitive Analysis

This is one of the sections of the 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 marketing campaigns required by Oil Company, Inc. are minimal as the business will sell its extracted oil directly to the open market. As such, it is imperative that any marketing expenditures undertaken by the Company focus on developing relationships with metals wholesalers and property management firms that will seek and lease land to the business.

5.1 Marketing Objectives

• • Develop relationships with specialty property management firms that will lease land to the business for its oil extraction operations.

• • Establish relationships with oil wholesalers within the targeted market.

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5.2 Marketing Strategies

Prior to the onset of operations, Mr. Doe will develop ongoing purchase order relationships (based on market prices) with national and international energy product dealers and wholesalers that will acquire the Company’s inventory of extracted oil. In order to complete this aspect of Oil Company’s marketing operations, Mr. Doe will directly contact well known energy wholesalers. As these buyers are constantly searching for new sources, developing these relationships will not be an issue. Additionally, the Company will make its presence known among real estate agents and property management firms that specialize in the sale and placement of leases for land that is known to carry oil deposits. Much like with the oil wholesalers/dealers, Mr. Doe will directly contact these companies in order to develop working relationships.

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 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

• • Oil Company, Inc. will have an annual revenue growth rate of 16% per year.

• • The Founder will acquire $600,000 of equity funds to develop the business.

• • Mr. Doe will sell a 40% equity interest in the business in exchange for the requisite capital sought in this business plan.

7.2 Sensitivity Analysis

In the event of an economic downturn, the business may have a decline in its revenues. In an economic recession, the demand for oil decreases as people will have less discretionary income. However, in today’s economic climate, inflation has become a serious concern, and investors have driven up the price of oil up substantially as a safe investment to hedge against inflationary risks. As such, the business should have very few issues regarding top line 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