File Content -
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, except for
the Executive Summary, which should be done last. Skip 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 smooth ‐flowing 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. However, you
should modify it to suit your particular circumstances. Before you begin, review the
section titled Refining the Plan, found at the end. It suggests emphasizing certain areas
depending upon your type of business (manufacturing, retail, service, etc.). It also has
tips for fine ‐tuning 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.
You will be judged by the quality and appearance of your work as well as by your
ideas.
It typically takes several weeks to complete a good plan. Most of that time is spent in
research and re‐thinking your ideas and assumptions. But then, that’s the value of the
process. So make time to do the job properly. Those who do never regret the effort. And
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 SCORE office in your area to
set up a business counseling appointment with a SCORE volunteer or send your plan
for review to a SCORE counselor at www.score.org . Call 1‐800‐634‐0245 to get the
contact information for the SCORE office closest to you.
Business Plan
OWNERS
Your Business Name
Address Line 1
Address Line 2
City, ST ZIP Code
Telephone
Fax
E ‐Mail
I. Table of Contents
I. Table of Contents ........................................................................\
........................... 3
II. Executive Summary ........................................................................\
....................... 4
III. General Company Description ........................................................................\
.... 5
IV. Products and Services ........................................................................\
.................... 6
V. Marketing Plan ........................................................................\
............................... 7
VI. Operational Plan ........................................................................\
.......................... 16
VII. Management and Organization ........................................................................\
. 21
VIII. Personal Financial Statement ........................................................................\
..... 22
IX. Startup Expenses and Capitalization ................................................................ 23
X. Financial Plan ........................................................................\
............................... 24
XI. Appendices ........................................................................\
................................... 27
XII. Refining the Plan ........................................................................\
.......................... 28
II. Executive Summary
Write this section last.
We suggest that you make it two pages or fewer.
Include everything that you would cover in a five ‐minute interview.
Explain the fundamentals of the proposed business: What will your product be? Who
will your customers be? Who are the owners? What do you think the future holds for
your business and your industry?
Make 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.
III. General Company Description
What business will you be in? What will you do?
Mission Statement: Many companies have a brief mission statement, usually in 30
words or fewer, explaining 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 by:
Company Goals and Objectives: Goals are destinations—where you want your business
to be. Objectives are progress markers along the way to goal achievement. For example,
a goal might be to have a healthy, successful company that is a leader in customer
service and that has a loyal customer following. Objectives might be annual sales targets
and some specific measures of customer satisfaction.
Business Philosophy: What is important to you in business?
To whom will you market your products? (State it briefly here—you will do a more
thorough explanation in the Marketing Plan section).
Describe your industry. Is it a growth industry? What changes do you foresee in the
industry, short term and long term? How will your company be poised to take
advantage of them?
Describe your most important company strengths and core competencies. What factors
will make the company succeed? What do you think your major competitive strengths
will be? What background experience, skills, and strengths do you personally bring to
this new venture?
Legal form of ownership: Sole proprietor, Partnership, Corporation, Limited liability
corporation (LLC)? Why have you selected this form?
IV. Products and Services
Describe 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 disadvantages? Examples include
level of quality or unique or proprietary features.
What are the pricing, fee, or leasing structures of your products or services?
V. Marketing Plan
Market research - Why?
No matter how good your product and your service, the venture cannot succeed
without effective marketing. And this begins with careful, systematic research. It is very
dangerous to assume that you already know about your intended market. You need to
do market research to make sure you’re on track. Use the business planning process as
your opportunity to uncover data and to question your marketing efforts. Your time
will be well spent.
Market research - How?
There are two kinds of market research: primary and secondary.
Secondary research means using published information such as industry profiles, trade
journals, newspapers, magazines, 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.
Start with your local library. Most librarians are pleased to guide you through their
business data collection. You will be amazed at what is there. There are more online
sources than you could possibly use. Your chamber of commerce has good information
on the local area. Trade associations and trade publications often have excellent
industry ‐specific data.
Primary research means gathering your own data. For example, you could do your own
traffic count at a proposed location, use the yellow pages to identify competitors, and
do surveys or focus ‐group interviews to learn about consumer preferences.
Professional 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 all‐important sales projection.
Economics
Facts about your industry:
• What is the total size of your market?
• What percent share of the market will you have? (This is important only if you
think you will be a major factor in the market.)
• Current demand in target market.
• Trends in target market—growth trends, trends in consumer preferences, and
trends in product development.
• Growth potential and opportunity for a business of your size.
• What barriers to entry do you face in entering this market with your new
company? Some typical barriers are:
o High capital costs
o High production costs
o High marketing costs
o Consumer acceptance and brand recognition
o Training and skills
o Unique technology and patents
o Unions
o Shipping costs
o Tariff barriers and quotas
• And of course, how will you overcome the barriers?
• How could the following affect your company?
o Change in technology
o Change in government regulations
o Change in the economy
o Change in your industry
Product
In the Products and Services section, you described your products and services as you see
them. Now describe them from your customers’ point of view.
Features and Benefits
List all of your major products or services.
For each product or service:
• Describe the most important features. What is special about it?
• Describe the benefits. That is, what will the product do for the customer?
Note the difference between features and benefits, and think about them. For example,
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. You build features
into your product so that you can sell the benefits.
What after‐sale services will you give? Some examples are delivery, warranty, service
contracts, support, follow‐up, 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 analyze
both the end consumer and the middleman businesses to which you sell.
You may have more than one customer group. Identify the most important groups.
Then, for each customer group, construct what is called a demographic profile:
• Age
• Gender
• Location
• Income level
• Social class and occupation
• Education
• Other (specific to your industry)
• Other (specific to your industry)
For business customers, the demographic factors might be:
• Industry (or portion of an industry)
• Location
• Size of firm
• Quality, technology, and price preferences
• Other (specific to your industry)
• Other (specific to your industry)
Competition
What products and companies will compete with you?
List your major competitors:
(Names and addresses)
Will they compete with you across the board, or just for certain products, certain
customers, or in certain locations?
Will you have important indirect competitors? (For example, video rental stores
compete with theaters, although they are different types of businesses.)
How will your products or services compare with the competition?
Use the Competitive Analysis table below to compare your company with your two
most important competitors. In the first column are key competitive factors. Since these
vary from one industry to another, you may want to customize the list of factors.
In the column labeled Me, state how you honestly think you will stack up in customers ʹ
minds. Then check whether you think this factor will be a strength or a weakness for
you. Sometimes it is hard to analyze our own weaknesses. Try to be very honest here.
Better yet, get some disinterested strangers to assess you. This can be a real eye‐opener.
And 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. You want an
honest assessment of your firmʹs strong and weak points.
Now analyze each major 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 = critical; 5 = not very important.
Table 1: Competitive Analysis
Factor Me Strength Weakness Competitor A Competitor B Importance
to
Customer
Products
Price
Quality
Selection
Service
Reliability
Stability
Expertise
Company
Reputation
Location
Appearance
Factor Me Strength Weakness Competitor A Competitor B Importance
to
Customer
Sales Method
Credit Policies
Advertising
Image
Now, write a short paragraph stating your competitive advantages and disadvantages.
Niche
Now that you have systematically analyzed 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.
Strategy
Now outline a marketing strategy that is consistent with your niche.
Promotion
How will you get the word out to customers?
Advertising: What media, why, and how often? Why this mix and not some other?
Have you identified low‐cost methods to get the most out of your promotional budget?
Will you use methods other than paid advertising, such as trade shows, catalogs, dealer
incentives, word of mouth (how will you stimulate it?), and network of friends or
professionals?
What image do you want to project? How do you want customers to see you?
In addition to advertising, what plans do you have for graphic image support? This
includes things like logo design, cards and letterhead, brochures, signage, and interior
design (if customers come to your place of business).
Should you have a system to identify repeat customers and then systematically contact
them?
Promotional Budget
How much will you spend on the items listed above?
Before startup? (These numbers will go into your startup budget.)
Ongoing? (These numbers will go into your operating plan budget.)
Pricing
Explain your method or methods of setting prices. For 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. Usually you will do better to have average prices and compete on quality
and service.
Does your pricing strategy fit with what was revealed in your competitive analysis?
Compare your prices with those of the competition. Are they higher, lower, the same?
Why?
How important is price as a competitive factor? Do your intended customers really
make their purchase decisions mostly on price?
What will be your customer service and credit policies?
Proposed Location
Probably 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. Many startups run successfully from home
for a while.
You will describe your physical needs later, in the Operational Plan section. Here,
analyze your location criteria as they will affect your customers.
Is your location important to your customers? If yes, how?
If customers come to your place of business:
Is it convenient? Parking? Interior spaces? Not out of the way?
Is it consistent with your image?
Is it what customers want and expect?
Where is the competition located? Is it better for you to be near them (like car dealers or
fast food restaurants) or distant (like convenience food stores)?
Distribution Channels
How do you sell your products or services?
Retail
Direct (mail order, Web, catalog)
Wholesale
Your own sales force
Agents
Independent representatives
Bid on contracts
Sales Forecast
Now that you have described your products, services, customers, markets, and
marketing plans in detail, it’s time to attach some numbers to your plan. Use a sales
forecast spreadsheet to prepare a month‐by ‐month projection. The forecast should be
based on your historical sales, the marketing strategies that you have just described,
your market research, and industry data, if available.
You may want to do two forecasts: 1) a ʺ best guessʺ , which is what you really expect,
and 2) a ʺworst caseʺ low estimate that you are confident you can reach no matter what
happens.
Remember 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.
VI. Operational Plan
Explain the daily operation of the business, its location, equipment, people, processes,
and surrounding environment.
Production
How and where are your products or services produced?
Explain your methods of:
• Production techniques and costs
• Quality control
• Customer service
• Inventory control
• Product development
Location
What qualities do you need in a location? Describe the type of location you’ll have.
Physical requirements:
• Amount of space
• Type of building
• Zoning
• Power and other utilities
Access:
Is it important that your location be convenient to transportation or to suppliers?
Do you need easy walk‐ in access?
What are your requirements for parking and proximity to freeway, airports, railroads,
and shipping centers?
Include a drawing or layout of your proposed facility if it is important, as it might be for
a manufacturer.
Construction? Most 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.
Cost: Estimate your occupation expenses, 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 hours?
Legal Environment
Describe the following:
• Licensing and bonding requirements
• Permits
• Health, workplace, or environmental regulations
• Special regulations covering your industry or profession
• Zoning or building code requirements
• Insurance coverage
• Trademarks, copyrights, or patents (pending, existing, or purchased)
Personnel
• Number of employees
• Type of labor (skilled, unskilled, and professional)
• Where and how will you find the right employees?
• Quality of existing staff
• Pay structure
• Training methods and requirements
• Who does which tasks?
• Do you have schedules and written procedures prepared?
• Have you drafted job descriptions for employees? If not, take time to write some.
They really help internal communications with employees.
• For certain functions, will you use contract workers in addition to employees?
Inventory
• What kind of inventory will you keep: raw materials, supplies, finished goods?
• Average value in stock (i.e., what is your inventory investment)?
• Rate of turnover and how this compares to the industry averages?
• Seasonal buildups?
• Lead ‐time for ordering?
Suppliers
Identify key suppliers:
• Names and addresses
• Type and amount of inventory furnished
• Credit and delivery policies
• History and reliability
Should you have more than one supplier for critical items (as a backup)?
Do you expect shortages or short ‐term delivery problems?
Are supply costs steady or fluctuating? If fluctuating, how would you deal with
changing costs?
Credit Policies
• Do you plan to sell on credit?
• Do you really need to sell on credit? Is it customary in your industry and
expected by your clientele?
• If yes, what policies will you have about who gets credit and how much?
• How will you check the creditworthiness of new applicants?
• What terms will you offer your customers; that is, how much credit and when is
payment due?
• Will you offer prompt payment discounts? (Hint: Do this only if it is usual and
customary in your industry.)
• Do you know what it will cost you to extend credit? Have you built the costs into
your prices?
Managing Your Accounts Receivable
If you do extend 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. A receivables aging looks like the following table:
Total Current 30 Days 60 Days 90 Days Over 90 Days
Accounts
Receivable Aging
You will need a policy for dealing with slow ‐paying customers:
• When do you make a phone call?
• When do you send a letter?
• When do you get your attorney to threaten?
Managing Your Accounts Payable
You should also age your accounts payable, what you owe to your suppliers. This helps
you plan whom to pay and when. Paying too early depletes your cash, but paying late
can cost you valuable discounts and can damage your credit. (Hint: If you know you
will be late making a payment, call the creditor before the due date.)
Do your proposed vendors offer prompt payment discounts?
A payables aging looks like the following table.
Total Current 30 Days 60 Days 90 Days Over 90 Days
Accounts Payable
Aging
VII. Management and Organization
Who will manage the business on a day ‐to ‐day basis? What experience does that person
bring to the business? What special or distinctive competencies? Is there a plan for
continuation of the business if this person is lost or incapacitated?
If you’ll have more than 10 employees, create an organizational 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 and Advisory Support
List the following:
• Board of directors
• Management advisory board
• Attorney
• Accountant
• Insurance agent
• Banker
• Consultant or consultants
• Mentors and key advisors
VIII. Personal Financial Statement
Include personal financial statements for each owner and major stockholder, showing
assets and liabilities held outside the business and personal net worth. Owners will
often have to draw on personal assets to finance the business, and these statements will
show what is available. Bankers and investors usually want this information as well.
IX. Startup Expenses and Capitalization
You will have many startup expenses before you even begin operating your business.
It’s important to estimate these expenses accurately and then to plan where you will get
sufficient capital. This is a research project, and the more thorough your research
efforts, the less chance that you will leave out important expenses or underestimate
them.
Even 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
expenses. The first is to add a little “padding” 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 20 percent of the total of all other start‐
up expenses.
Explain your research and how you arrived at your forecasts of expenses. Give sources,
amounts, and terms of proposed loans. Also explain in detail how much will be
contributed by each investor and what percent ownership each will have.
X. Financial Plan
The financial plan consists of a 12 ‐month profit and loss projection, a four‐year profit
and loss projection (optional), a cash‐flow projection, a projected balance sheet, and a
break ‐even calculation. Together they constitute a reasonable estimate of your
company ʹs financial future. More important, the process of thinking through the
financial plan will improve your insight into the inner financial workings of your
company.
12-Month Profit and Loss Projection
Many business owners think of the 12‐month profit and loss projection 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.
Your sales projections will come from a sales forecast in which you forecast sales, cost of
goods sold, expenses, and profit month‐by ‐month for one year.
Profit projections should be accompanied by a narrative explaining the major
assumptions used to estimate company income and expenses.
Research Notes: Keep careful notes on your research and assumptions, so that you can
explain them later if necessary, and also so that you can go back to your sources when
it’s time to revise your plan.
Four-Year Profit Projection (Optional)
The 12‐month projection is the heart of your financial plan. The Four‐ Year Profit
projection is for those who want to carry their forecasts beyond the first year.
Of course, keep notes of your key assumptions, especially about things that you expect
will change dramatically after the first year.
Projected Cash Flow
If the profit projection is the heart of your business plan, cash flow is the blood.
Businesses fail because they cannot pay their bills. Every 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 expenses, operating expenses, and reserves. You should keep updating it
and using it afterward. It will enable you to foresee shortages in time to do something
about them—perhaps cut expenses, or perhaps negotiate a loan. But foremost, you
shouldn’t be taken by surprise.
There is no great trick to preparing it: The cash ‐flow projection
is just a forward look at
your checking account.
For each item, determine when you actually expect to receive cash (for sales) or when
you will actually have to write a check (for expense items).
You 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.
You should also track cash outlays prior to opening in a pre ‐startup column. You
should have already researched those for your startup expenses plan.
Your cash flow will show you whether your working capital is adequate. Clearly, if
your projected cash balance ever goes negative, you will need more start‐up capital.
This plan will also predict just when and how much you will need to borrow.
Explain your major assumptions, especially those that make the cash flow differ from
the Profit and Loss Projection . For example, if you make a sale in month one, when do
you actually collect the cash? When you buy inventory or materials, do you pay in
advance, upon delivery, or much later? How will this affect cash flow?
Are some expenses payable in advance? When?
Are there irregular expenses, such as quarterly tax payments, maintenance and repairs,
or seasonal inventory buildup, that should be budgeted?
Loan payments, equipment purchases, and ownerʹ s draws usually do not show on
profit and loss statements but definitely do take cash out. Be sure to include them.
And of course, depreciation does not appear in the cash flow at all because you never
write a check for it.
Opening Day Balance Sheet
A balance sheet is one of the fundamental financial reports that any business needs for
reporting and financial management. A balance sheet shows what items of value are
held by the company (assets), and what its debts are (liabilities). When liabilities are
subtracted from assets, the remainder is owners’ equity.
Use a startup expenses and capitalization 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
.
Optional: Some people want to add a projected 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.
Break-Even Analysis
A break ‐even 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.
Expressed as a formula, break‐even is:
Fixed Costs
Break ‐Even Sales =
1‐ Variable Costs
(Where fixed costs are expressed in dollars, but variable costs are expressed as a percent
of total sales.)
Include all assumptions upon which your break ‐even calculation is based.
XI. Appendices
Include details and studies used in your business plan; for example:
• Brochures and advertising materials
• Industry studies
• Blueprints and plans
• Maps and photos of location
• Magazine or other articles
• Detailed lists of equipment owned or to be purchased
• Copies of leases and contracts
• Letters of support from future customers
• Any other materials needed to support the assumptions in this plan
• Market research studies
• List of assets available as collateral for a loan
XII. Refining the 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.
For Raising Capital
For Bankers
• Bankers want assurance of orderly repayment. If you intend using this plan to
present to lenders, include:
o Amount of loan
o How the funds will be used
o What this will accomplish—how will it make the business stronger?
o Requested repayment terms (number of years to repay). You 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 Collateral offered, and a list of all existing liens against collateral
For Investors
• Investors have a different perspective. They are looking for dramatic growth, and
they expect to share in the rewards:
o Funds needed short‐term
o Funds needed in two to five years
o How the company will use the funds, and what this will accomplish for
growth.
o Estimated return on investment
o Exit strategy for investors (buyback, sale, or IPO)
o Percent of ownership that you will give up to investors
o Milestones or conditions that you will accept
o Financial reporting to be provided
o Involvement of investors on the board or in management
For Type of Business
Manufacturing
• Planned production levels
• Anticipated levels of direct production costs and indirect (overhead) costs—how
do these compare to industry averages (if available)?
• Prices per product line
• Gross profit margin, overall and for each product line
• Production/capacity limits of planned physical plant
• Production/capacity limits of equipment
• Purchasing and inventory management procedures
• New products under development or anticipated to come online after startup
Service Businesses
• Service businesses sell intangible products. They are usually more flexible than
other types of businesses, but they also have higher labor costs and generally
very little in fixed assets.
• What are the key competitive factors in this industry?
• Your prices
• Methods used to set prices
• System of production management
• Quality control procedures. Standard or accepted industry quality standards.
• How will you measure labor productivity?
• Percent of work subcontracted to other firms. Will you make a profit on
subcontracting?
• Credit, payment, and collections policies and procedures
• Strategy for keeping client base
High Technology Companies
• Economic outlook for the industry
• Will the company have information systems in place to manage rapidly changing
prices, costs, and markets?
• Will you be on the cutting edge with your products and services?
• What is the status of research and development? And what is required to:
o Bring product/service to market?
o Keep the company competitive?
• How does the company:
o Protect intellectual property?
o Avoid technological obsolescence?
o Supply necessary capital?
o Retain key personnel?
High‐ tech 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. Venture capitalists may invest, but your story must be very good.
You must do longer ‐term financial forecasts to show when profit take ‐off is expected to
occur. And your assumptions must be well documented and well argued.
Page 31 of 31
Retail Business
• Company image
• Pricing:
o Explain markup policies.
o Prices should be profitable, competitive, and in accordance with company
image.
• Inventory:
o Selection and price should be consistent with company image.
o Inventory level: Find industry average numbers for annual inventory
turnover rate (available in RMA book). Multiply your initial inventory
investment by the average turnover rate. The result should be at least
equal to your projected first yearʹ s cost of goods sold. If it is not, you may
not have enough budgeted for startup inventory.
• Customer service policies: These should be competitive and in accord with
company image.
• Location: Does it give the exposure that you need? Is it convenient for
customers? Is it consistent with company image?
• Promotion: Methods used, cost. Does it project a consistent company image?
• Credit: Do you extend credit to customers? If yes, do you really need to, and do
you factor the cost into prices?
CAclubindia
