Be Profitable in Business

Part 5 Business Planning

The last in our series and by no means the least, Business Planning
covers the importance of business planning from presentation,
presenting and selling the business plan to making the plan work. We
have also added a sample business plan outline to help you follow a
tried and true process.
This material is designed to help businesses facing these broad issues,
and more. Youll find its segmented into five easy-to-follow sections:
Part 1 deals with Starting Up;
Part 2 focuses on Managing for Profit;
Part 3 is about Managing for Growth;
Part 4 describes Asset Planning and Family Trusts; and
Part 5 covers Business Planning.
This information is not designed to be an encyclopaedia or a do-ityourself guide for these situations. Instead, it provides an indication of
the points you should consider.
KPMG can offer help to a business at any stage of its development. As a
firm, through our Middle Market Advisory division, we are committed to
helping privately owned businesses throughout New Zealand. With
around 100,000 people worldwide, KPMG member firms provide audit,
tax and advisory services from 717 cities in over 150 countries over the
world.
To find out more, contact a Middle Market Advisory partner at any of our
offices, listed in the back of this material.

Be Profitable in Business
Part 5 - Business Planning
CONTENTS
02

INTRODUCTION

03 THE IMPORTANCE OF
BUSINESS PLANNING
04

THE ELEMENTS OF PLANNING

06 BUSINESS PLAN
PRESENTATION
09

FINANCIAL DATA

10 PRESENTING AND SELLING

THE PLAN
11

MAKING THE PLAN WORK

12

KPMG CAN HELP

12 SAMPLE BUSINESS PLAN

OUTLINE
15

CONTACTS

Be Profitable in Business. Part 5 Business Planning

Introduction
Todays New Zealand economy provides businesses with considerable opportunities but
also clear requirements to change.
A number of businesses are reaching out to take advantage of the opportunities and to
manage the concurrent risks.
Others are battling the consequences of earlier decisions based on inadequately researched
or understood strategies. Either way the development of credible, well researched business
plans is undoubtedly a key component in attaining or maintaining success.
A business plan specifies a business objectives and how these are to be achieved. It is
derived from a systematic review of the business existing strategic position and the options
available to it. The fundamental purpose of the plan and particularly the planning process is
to maximise the future performance of the business. In addition business plans are
invaluable, if not essential, for winning and maintaining investor support.
Investors and boards increasingly require solid business plans demonstrating that the
management has logically determined the future direction of the business. This applies both
to successful businesses and those needing to improve their performance, particularly if
further funding is required.
An effective business plan is concise and readily understood. It will demonstrate not only a
comprehensive understanding of the business but also the required commitment and
controls necessary to ensure the implementation of the plan.
KPMG serves the needs of emerging and growing businesses as well as larger, mature
businesses. We have recognised the importance of this sector by ensuring we have the
specified resources to provide a full range of services needed by businesses.
We understand the importance of putting personalised professionalism into every service
we offer, and have the specialists experienced in serving your particular type of business.
Strategic assistance for your business planning is the foundation we offer to help you build
for your business future.

Be Profitable in Business. Part 5 Business Planning

The Importance of Business Planning

A business plan is both a management tool and a sales tool. It is a valuable management tool for the development,
expansion and ongoing operation of your business, whether you are a manufacturing company, service organisation, or
merchandiser. It is also essential when you are selling your company to investors and lenders.
It is important to stress that all businesses should review and update their business plan every year.
Preparing a business plan is a special process that requires commitment, research, and careful preparation by your
management team. This is how a business plan differs from the planning for the business most managers do
routinely.
Whereas a plan for business is often prepared by one individual, a business plan should always involve the entire
management team.
A plan for business is often limited to the planners area of interest or department and is, in many ways, a personal
resource. The business plan, on the other hand, includes and integrates all areas of the business: products or services,
marketing, administration, and finance.
The process of preparing the business plan serves several important functions for all business. It helps entrepreneurs
and managers focus on the business as a whole.
Often, members of management develop a focus restricted to only the product of technology of the business, or to only
one department or area of operation. The business plan will help managers see the big picture.
The plan also clearly describes the desired route for management during a business expansion or change to a new type
of operation, or during the early years of an emerging business. It provides accountability and direction through built-in
controls and reporting procedures. These provide clear checkpoints for accomplishments and goal attainment, allowing
progress to be measured.
Commencement of the planning process should be before the environment demands it, ie. When it may seem
unnecessary. Organisations often resort to formal business planning only in times of difficulty. The purpose of planning
however, is to attempt to identify problems (and their solutions) before they are encountered.
All businesses face issues of planning and measuring accomplishments in primary areas of operations, such as
production, marketing, administration and finance. You must plan production, whether you are manufacturing a product,
providing a service, or purchasing merchandise for resale. You must plan your marketing strategy: How will you sell or
distribute your product or services? What does the market require?
All businesses have personnel and organisational issues to resolve. All businesses face accounting issues, the inventory
or tally of products or services, product distribution, and the costs related to production and distribution.
Some questions that need to be explored remain the same for all types of businesses. What should be the production
and inventory schedules? What is the demand for the product/service provided? Is that demand seasonal? What is the
likely size and growth of this target market? Who are the competitors? How are prices set and costs determined?
All businesses deal with physical plant questions, too. Where is your site? Is it adequate now? Will it be adequate during
the course of the planning period? What are its advantages and disadvantages?
Manufacturing Businesses
Manufacturing businesses have particular questions to answer. Equipment needs, availability, and obsolescence must
be dealt with. Supplier requirements, lead times, and ability to fill purchase orders must be considered in planning
production schedules. Patents, licenses, and regulatory requirements are key issues as well. The plan should also show
quality assurance methods, expected inventories of raw materials and work in progress, present manufacturing
problems, and potential bottlenecks.
Service Organisations
The variables detailed in a business plan are likely to be a bit different for the service organisation, but it is equally
important for this type of business to look seriously at the thoroughness of its plan. The service organisation often
neglects to identify its product as such and relies much more on generalities and the personalities of its key staff. A
long, serious look at both personnel and service(s) provided is crucial for clarifying the assumptions of this business
plan.
Be Profitable in Business. Part 5 Business Planning

Service organisations face specific problems in planning for the number of personnel and for their utilisation. Hours of
labour make up the inventory of these organisations, and wasted hours are not recoverable in the future.
Merchandising
Merchandising also has unique areas to consider in a business plan. This type of business must look closely at the
marketing requirements of site selection. What is the traffic count? How seasonal or cyclical are sales? What is the
timetable for optimum sales of the product(s)? What is the products shelf life? The advertising and promotion plan for
merchandising is particularly critical. Merchandisers deal with large numbers of people/ customers and usually have a
more diverse population to address with advertising. All these are important issues for the merchandising business to
explore; all are essential in the development of a complete business plan.

The Elements of Planning

Before preparing your business plan, you should consider:
How you can obtain the effort and commitment necessary to collect the information needed, formulate a business
plan, and make it work for you as a business resource;
Whether you are, indeed, knowledgeable about the business and familiar with all levels of operations;
Whether you require professional assistance preparing the plan.
If you have ascertained that these factors are accounted for, then you are ready to work on your plan.
Those involved in developing the business plan must consider the background of their business and answer basic
questions about its origins, its philosophy and mission, its objectives, and its means of accomplishing those objectives.
A sound management approach suggests that answering these questions is an essential first step to take, to reach any
goal efficiently.
First, determine where you are; then, decide where you would like to be; and, finally, figure out how to get there.
This is the process of:
Recognising your current status;
Identifying your philosophy about doing business, developing the business mission, and setting objectives;
Identifying the strategies that can best be used to accomplish those objectives.
Where are you now?
Basic questions about the origins of the business and what the business is about must be answered. You must clearly
understand what business you are in, how you got there, and what resources exist at present. This evaluation is
necessary in order to get a clear definition of your business.
A critical problem for both growing and emerging businesses is that often the definition of the business is unclear or
changing. The business may have diversified or expanded beyond its strengths or resources without anyone ever
determining the consequences or alternatives.
Some of these questions also get overlooked in the research and development of new products or services.
Questions to consider include:
Why are you in business?
Profit?
Self-employment?
Service?
What business are you in?
What needs do you really fill?
Whose needs are these
Where is your industry in its life cycle?
Beginning?
Growing?
Be Profitable in Business. Part 5 Business Planning

Mature?
Dying?
Where is your business in its life cycle?
Beginning?
Growing?
Mature?
How did you get here?
Major problems dealt with?
Opportunities and successes experienced?
Historical financial information?
What market factors affect you?
Primary customers?
Secondary customers?
Personnel?
Materials?
Financing?
Equipment?
What are your internal strengths or resources?
Superior engineering talents?
Patent protection?
Financial position?
Marketing experience?
Quality of services provided?
What are your internal weaknesses or problems?
Incomplete business experience?
Inadequate capitalisation?
Inadequate communication channels?

There are many ways to obtain the quantitative information you need for your planning. With questionnaires, you can
collect information about the business from the appropriate people or departments within the business. For example,
you should obtain data about the history of the business, existing sales levels, budgets, possible changes internally or
externally that would affect productivity, market information, personnel information, financial evaluations, manufacturing
status evaluations, and/or service evaluations. The new business can also collect needed information from its own
product or service research and development activities, and from business associates, management or accounting
consultants, etc. It is helpful to talk to people both inside and outside your organisation to gather and evaluate this
information.
At this point in the process of preparing your business plan, the focus is on future developments for the business. It is
necessary to be specific in the objectives set for the business and to be able to satisfy yourself and others as to their
achievement.
Where do you want to be?
It may be helpful to request all department heads to specify objectives. A frequent approach is to ask for three or more
suggestions to improve each area of operation: product/service(s), marketing, administration, and finance.
The convergence of various contributors input can be useful both operationally and as a way to increase staff
commitment to the plan.
Some of the questions to be answered include:
Have all key staff been involved in setting the objectives?
What are alternative objectives?
What effect would each have on the plan?
What effect would each have on the bottom line?
What critical issues are related to the chosen objectives?
Desired rate of growth
Desired rate of profitability
Desired public image
New markets
Be Profitable in Business. Part 5 Business Planning

New products/services
Capability of personnel
Availability of financing
Adequacy of plant and equipment
What are the priorities?
Financial?
Personnel?
Research and development?
How do you get there?
Once you have clearly outlined where you want to be and have set specific objectives, you must think through the steps
necessary to reach those objectives. This lays the foundation for the action section of your business plan. It is
particularly useful to set down specific action steps required to attain each objective. This organises your business
efforts for the accomplishment of those objectives.
You will have specific steps to take in all areas of your business: product/service development, marketing and
distribution, finance, and administration and accountability.
The plan should provide measurable objectives that are both do-able and ambitious. The action steps can then be
delegated, monitored, and reported upon.
Some questions to be answered in considering the development of action steps are:
Who will be responsible for each identified course of action?
Is responsibility tied to normal areas of supervision?
Has input been obtained from those responsible?
What time frames should each objective have?
Are they do-able in that time period?
What are the ramifications of missed deadlines?
What are the stumbling blocks to achieving the objectives?
Internal?
External?
Are there probable changes in the economic environment?
Inflation?
Availability of money?
Price changes?
Are checkpoints and evacuation routes established for these eventualities?
Are they clearly stated?
Is there a point of no return
Can progress be monitored and measured?
How will you know when objectives are met?
How will you determine that objectives are not going to be met?
What do the reports look like?
When are the reports issued?
Who provides the reports?
Have the necessary controls been considered?
Budgetary system?
Variance analysis?

Business Plan Presentation

When you have considered in depth questions such as those outlined previously, and have begun to collect the
information needed to answer them, you will be ready to focus your attention on organising specific sections of the
business plan. How do you present that information? Following is an order and format that will be helpful.
Cover Sheet
Be Profitable in Business. Part 5 Business Planning

The cover sheet should be a single-page introduction to the business. It is the first thing to be read and should include
the business name, business address, business phone, and the date of the plan. Keep it simple and eye-appealing.
Table of Contents
Be specific in this area. Some readers may judge the completeness of the plan from the detail provided in the table of
contents. Others may wish to jump immediately to certain sections; make their job easier.
Executive summary
The executive summary is what sells someone on reading the remainder of the plan. It tells what the plan is, its major
objectives, how those objectives will be accomplished, and the expected results. It may serve as the introduction for
most of your staff to a new plan of operations, expansion, or product changes in your business.
The executive summary should be one or two double-spaced pages and should contain the essence of the plan. It is a
brief overview or summary of material from other sections of the plan, designed to catch the attention of the reader. It
should include a description of your products and business, marketing strategy, management structure, and financial
projections.
An effective summary should position your business attractively, motivate staff, distinguish your products or services
from the competitors, and be persuasive to potential investors and lenders. This segment may be the only portion read
by most investors - make yours an inviting element of your plan, not an afterthought. Consider for whom it is written,
what is being requested from them, and why they should be interested.
While the summary is presented first in the plan, it is actually written after the plan is otherwise complete.
Current Position Summary
This section is essentially a snap shot of the business present performance and resources. Include: a concise review of
turnover, market share, growth trends, and competitive situation, a current statement of financial position and financial
performance; a summary of major resources including market, production and human resources.
History
If you are developing a business plan solely for internal use for managing change, you may wish to provide only major
highlights of your business history in this section, with additional details in an appendix.
A new business might choose to outline pertinent background information on the principals and discuss their
contributions.
Be specific in your explanation of how the idea for your product or company came to be. Avoid a shot rang out in the
dark rhetoric; even highly dramatic, creative experiences can be described simply.
Summarise the corporate structure, capitalisation, classes of stock, shares outstanding, and managements investment
in the company. Relevant product or service successes and failures should be outlined.
Definition of the Purpose of the Business
It is important to be able to state succinctly what your business is. This is distinct from what the business does (a listing
of functions, products, or services) and is oriented to answering the question, What needs are we meeting?
Inconsistency between the business you are in, and the one you think you are in, causes many management ills.
One way to gain perspective on this issue is to search for the relationships between internally and externally generated
descriptions. What do you think you sell? What do your customers think they buy? What is your largest line of
inventory? Your best seller? Where do you make your greatest profit? Most personnel time is spent in what product or
service area? Are the answers fairly closely aligned and compatible, or are they divergent?
Definition of the Market
This section may well be both one of the most important and one of the most difficult parts of your business plan.
Marketing and finance often seem to be the last areas to be staffed internally with professionals. If you do not have a
marketing background, talk to people in advertising agencies, marketing firms, or business consulting firms. Your
definition of the market will indicate the target of your marketing effort: who buys and why, and what is your customer
like?
You will also want to look closely at the competition. Plans showing a lack of awareness of competition or little concern
for that aspect of marketing omit a major consideration in preparing a business plan.
Be Profitable in Business. Part 5 Business Planning

Here are some questions to assist you in defining your market:

Are your products or services purchased primarily by any particular group?
Age?
Ethnic background?
Income?
Occupation?
Educational level?
Gender?
Are your products purchased primarily within:
Any geographic area(s)?
Particular season(s)?
In certain types of stores or channels of distribution?
Are sales of your product(s) tied to sales or use of any other product(s)?
Your products?
Your competitors products?
Non competitors products?
List five adjectives customers use to describe your product:
Expensive or cheap?
High or low quality?
Mediocre or superior in appearance?
What is the size of the current total market for your product
State how you determined this. Do not rely solely on published data. Derive your information from discussions with:
Potential distributors;
Dealers;
Sales representatives;
Customers; and
Published material.
What is a realistic assessment of your competitions and your own strengths and weaknesses in the
marketplace?
(State your data sources.)
Price?
Quality?
Performance?
Service?
Warranties?
Description of Products or Services
The purpose of this section is to define precisely what you intend to develop and/or market. It should include a
discussion of all of the business existing or planned products or services. Length of the section will vary, depending on
the number and complexity of the products or services you sell or intend to sell. It should be written in language easily
understood by a lay person.
This section should contain a brief description of the product or service, the status of its research and development,
discussion of any legal protection the business has applied for or obtained (patents, copyrights, trademarks, etc.), any
needed or obtained government approvals or clearances. You may append any lengthy or detailed diagrams or technical
documents. You may also choose to refrain from sharing any proprietary information or drawings at this time. Catalogue
sheets and photographs are always helpful.
Management Structure
Indicate who will make things happen. The experience, talent, and integrity of those responsible for enacting your
proposals are of primary concern to lenders. What is your organisational structure? Who will report to whom? Which
other members of management are officers and directors? Are there outside board members?
Although details of the personnel manual are not a necessary portion of the plan, a brief discussion of employee policies
and benefits may be a helpful indication of the management approach. Resumes or other details of the personal
backgrounds of management may be left to an appendix. A brief narrative describing your people may be appropriate

Be Profitable in Business. Part 5 Business Planning

here. (A stratum or financing plan will require more detail than will an operating plan. The investor is looking for all clues
to the abilities of the people who will enact your plan.)
Remember that this section should emphasise two things:
that you have the right people and that they are properly organised to accomplish the plan.
Objectives and Goals
This section details just what you plan to accomplish, and how, when, and who will do it. It will include varying amounts
of detail, depending upon the purpose of your business plan. Items to be covered in this section include sales forecasts,
manufacturing or service plans, quality assurance plans, and financial plans. Details may be placed in individual
appendices where appropriate.
You should describe pricing and predicted profits. In some situations, a product is described as superior to the
competition - and then a lower price is suggested. This often cools a potential investors interest, first because it gives
the impression of the business owner or entrepreneur as a poor salesperson, and second, because future costs are
more often underestimated than overestimated.
Describe your advertising and promotion strategies and budget, and the changes from current programmes. What are
your plans for participation in trade shows? In trade magazine advertising, direct mail campaigns, radio and television
schedules? What print items will you produce - product sheets, promotional literature? How will your literature be
distributed?
Describe how you will sell and distribute your product or service. What categories of customers will be targeted for
initial heavy sales effort? Which customers will be sought for later sales efforts? How is this different from the existing
sales programme? Describe any special procedures for obtaining sales representatives, distributors, or established retail
networks.

Financial Data
One important purpose of the business plan is to indicate the expected financial results of operations. It also depicts the
financial potential of your venture and its capital needs. For anyone investing or lending money to your business, it tells
them why they should provide funds, when they can expect a return, and how large that return is expected to be. It is a
plan for the future. Therefore, any presentation of financial information about your business or your product must be
future-oriented.
In the case of an existing business seeking expansion capital, balance sheets and income statements for the current
year and prior two years should be included. Other historical financial information necessary to understanding the plan
should be attached in an appendix.
In making your forecasts and projections, assumptions must be made. These include but are certainly not limited to:

revenue
growth rates
time periods required
taxes/rates
production facilities
operating expenses
capital expenditures
environmental conditions
general economic conditions
contracts to be negotiated
competitors actions
turnovers; and
interdependencies

You should list your assumptions for the user(s) of the plan and to allow verification.

Be Profitable in Business. Part 5 Business Planning

Items to be included in the financial section are:

projected statement of financial performance
monthly for the planning year then annually or quarterly for the second and third years
projected cash flow analyses
monthly for the planning year then annually or quarterly for the second and third years
projected statement of financial position
projected statements of changes in financial position
cost-volume-profit analysis where appropriate
Your financial projections should be realistic, with reasonable margins that conform to experience and industry
standards. Dont forget to include assumptions in the rest of your plan concerning necessary or possible capital
requirements such as increased personnel, expanded manufacturing facilities, or equipment needs. Otherwise, your
plan will create an overly optimistic picture for management, which will create difficulties in the budgeting process
and plan evaluation. It can also create scepticism in the potential investor.
Financial projection matrices are available for use with personal computers, and they can greatly facilitate the
preparation of projections.
Remember that the budgetary process is the money portion of your business plan. It is integral to the plan, not separate
from it. The budget should be the last step in the planning process. Only after gathering the information, setting
objectives, and assessing your needs can the budget be realistically formulated. It can then serve to steer any necessary
changes in your objectives, action steps, or timetable.

Presenting and Selling the Plan

When you have completed the research and preparation of your business plan, you can focus on its presentation. The
investment of substantial time and resources to develop your plan should be complemented with an effective
presentation. It need not be an elaborate or expensive presentation, however.
Your plan should be prepared on A4 paper and should be typewritten and photocopied. For copies presented to
outsiders, you will want to bind it attractively. Remember that most business plans can be and perhaps should be
presented effectively in fewer than 40 pages. Length of the document is often inversely proportional to the probability of
its being read.
Keep the plan simple, readable, and attractive. Ensure that it is grammatically correct and action-oriented, with short,
direct sentences. (Always proof read for spelling mistakes, missing words or factual inaccuracies!) Tab each section for
easy reference. You may want to use charts, graphs, diagrams, tabular summaries, photographs, and other visual aids to
add interest and improve comprehension. Use active, dynamic verbs.
Remember that the business plan is primarily a document to accomplish specific objectives: to guide management in
operating the business and/or to obtain financing. Have others review it before you send it to potential investors or
lenders. Make certain it holds together and is clearly constructed. Be willing to change it; the goal is not the plan
itself. Individuals in the best position to provide you with constructive comments at this point include outsiders such as
your accounting, legal and business advisers, and other business people.
You will almost certainly want the people both within and outside your business who read your plan to treat it
confidentially, so indicate on the cover and again on the title page of the plan that all information is proprietary and
confidential. Keep track of the copies of your plan, especially if you are involved in a particularly sensitive endeavour.
Many managers and entrepreneurs will feel strongly that details of technical processes or innovative procedures, along
with specifics from their marketing strategy, should not be shared with external sources. It is quite possible to develop
an effective business plan for outsiders using excerpts from these areas of your internal business plan while retaining
proprietary information. If you choose to do so, ensure that the excerpts provide sufficient information for the reader and
that the information omitted is only that which is intended to provide internal guidance or technical explanation.
Avoid some of the most common pitfalls of business plans:
Bad information because of
Be Profitable in Business. Part 5 Business Planning

past record inaccuracies

unrealistic projections; and
mismatching objectives and tactics
Lack of consensus because of
top-down communications
no top-down push; and
varying individual goals
Inadequate controls because of
late or inaccurate reports
poor analysis; and
no feedback

When the plan has been prepared and reviewed, and it is ready for presentation, consider presenting it in person.
Personal presentation is usually expected, and it may well be the make-or-break point for your proposal. It can enhance
internal morale and support for the plan.
When presenting your plan, you may find it helpful to:
Have visual aids for key segments of the plan
Prepare for specific questions in the areas of the ability to make it happen
the adequacy of the research and development behind the product.
the validity of the market research
your financial projections and why they will work
your priorities among the objectives

Making the Plan Work

Once you have your business plan, and have submitted it to the audience for whom it was developed, it is often easy to
put it aside and let it gather dust along with other reference manuals on your bookshelf or your desk. This is a
tremendous waste of your management time and resources and an unfortunate fate for a document that can contribute
so much to your business management effectiveness.
With the involvement and support of management, the business plan you prepared can be a living document providing
necessary monitoring and controls. You should plan those controls, however, along with the necessary reports, to assist
in monitoring the process.
The reporting and evaluation processes need to allow for variances from the specifics included in the business plan.
Things seldom follow the expected (or desired) routes laid out in your plan. You should, however, have standards by
which to evaluate results.
When you are planning the controls you will need, some questions to consider are:
What is to happen?
When should it happen?
When/how will we know if it is going to happen or has happened?
Can we divide it into a series of events or stages?
Are there points where we can re-evaluate the objectives?
Who is responsible for making it happen?
Who reports?
What are the tolerances?
Your reports should be structured for simplicity, both in preparation and in evaluation. The reports you design should
relate to the key points in the plan and provide a place for showing the actual progress made. Include these reports in
the document. Illustrate the difference in objectives and actual achievements, either graphically or numerically. Show
the period and the year-to-date totals.

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10

You should determine when an explanation is required for divergence from the plan. Your explanations should
include:
Who is responsible?
What caused it?
Should it continue?
What actions should be changed?
When will it be done?
Any good plan needs a process for change or amendment build into it. Schedule regular status reports on the plan with
updates on all objectives and explanations where required. Include revised timetables as necessary. This helps to
maintain your business plan as a changing, living document.
Make certain the document itself is easy to change. It should be typewritten, photocopied, and kept in a looseleaf
notebook. The pages should be numbered and dated. These are some of the ways to ensure that your business plan will
continue to guide your operations and be quickly available for updating to meet new organisational or capitalisation
needs.

KPMG can help

KPMGs professionals are trained and experienced in assisting in the preparation of business plans for both growing and
emerging businesses. Our clients include businesses in all fields - manufacturing, service, merchandising, and high
technology. Our professionals can serve as advisors to your management in all areas of operations - marketing,
administration, and finance - where there may be no need for full-time professional staff in your business at present.
We provide among the best consultation available for your business plan. Our personnel are trained to be objective, and
they will offer this viewpoint in helping you prepare your plan and in anticipating questions from investors or
shareholders. They are trained to clarify and examine underlying assumptions that help shape your business plan.
The thousands of business clients we serve give us a current basis of comparison and experience that are valuable
resources for you in writing your first - or subsequent - plans.
KPMG can provide various forms of assistance including:
Providing a facilitator to guide your team through the planning process
Directly writing the plan on your behalf drawing on your inputs

Specific discipline input e.g. marketing, operations, finance; reviewing draft plans

Sample Business Plan Outline

1. Cover Sheet
Business name, address, and phone number
Principals
Date
2. Table of Contents
Each section listed with subheads
3. Executive Summary
Brief summary of the plan
Major objectives
Product/service(s) description
Marketing strategy
Financial projections
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11

4. Current Situation Summary

5. History
Background of principals or business origins
Product/service(s) background
Corporate structure
Brief outline of business successes or experiences
6. Definition of the Purpose of the Business
7. Definition of the Market
Target market
Market penetration projections
Analysis of competition
8. Description of Products or Services
Define what is to be developed or sold
Status of research and development
Patents, trademarks, copyrights
Append catalogue sheets, photographs, or technical information
9. Management Structure
Who will enact the plan
Organisational structure
Employee policies
Append additional detail such as resumes
10. Objectives and Goals
Revenue forecasts
Marketing plans
Manufacturing plans
Quality assurance plans
Financial plans
11. Financial Data
Projected statement of financial performance
Projected cash flow analyses
Projected statement of financial position
Projected statements of changes in financial position
Cost-volume profit analysis where appropriate
12. Appendices
Narrative history of the business in detail
Management structure (charts, resumes, etc.)
Detail of objectives and goals
Products and services
Research and development
Marketing
Manufacturing
Administration
Finance
Historical financial information (three to five years if possible)
Major assumptions
Brochures describing products
Letters of recommendation or endorsement

Be Profitable in Business. Part 5 Business Planning

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Contact us

KPMG

Associate Firms

Auckland
KPMG Centre
18 Viaduct Harbour Avenue
PO Box 1584
Tel (09) 367 5800
Fax (09) 367 5875

Dunedin
Taylor McLachlan
44 York Place
PO Box 188
Tel (03) 477 5790
Fax (03) 474 1564

New Plymouth
Landrigan Waite
10 Young Street
PO Box 332
Tel (06) 759 9034
Fax (06) 759 9047

Christchurch
KPMG at Cranmer
34-36 Cranmer Square
PO Box 274
Tel (03) 363 5764
Fax (03) 363 5765

Gisborne
McCullochs
1 Peel Street
PO Box 169
Tel (06) 869 1400
Fax (06) 867 8533

Otautau
Ward Wilson
119 Main Street
PO Box 50
Tel (03) 225 8244
Fax (03) 225 8237

Hamilton
KPMG Centre
85 Alexandra Street
PO Box 929
Tel (07) 858 6500
Fax (07) 858 6501

Gore
Ward Wilson
33a Main Street
PO Box 77
Tel (03) 208 9055
Fax (03) 208 1534

Tauranga
35 Grey
35 Grey Street
PO Box 110
Tel (07) 578 5179
Fax (07) 578 2555

Invercargill
Ward Wilson
62 Deveron Street
Private Bag 90106
Tel (03) 211 0103
Fax (03) 218 3623

Palmerston North
McKenzie McPhail
Farmers Mutual House
68 The Square
PO Box 1242
Tel (06) 358 4163
Fax (06) 356 5196

Wellington
KPMG Centre
135 Victoria Street
PO Box 996
Tel (04) 382 8800
Fax (04) 802 1224

Milton
Taylor McLachlan
6 Shakespeare Street
PO Box 33
Tel (03) 417 8066
Fax (03) 417 8064
Napier
Palairet Pearson
86 Station Street
PO Box 944
Tel (06) 835 3364
Fax (06) 835 3388

The information provided herein is of a general nature and is not intended to

address the circumstances of any individual or entity. Although we
endeavour to provide accurate and timely information, there can be no
guarantee that such information is accurate as of the date it is received nor
that it will continue to be accurate in the future. No one should act on such
information without appropriate professional advice after a thorough
examination of the particular situation.

Be Profitable in Business. Part 5 Business Planning

Queenstown
Ward Wilson
10 Athol Street
PO Box 123
Tel (03) 442 8554
Fax (03) 442 8594
Winton
Ward Wilson
221 Great North Road
PO Box 28
Tel (03) 236 7264
Fax (03) 236 7184

2006 KPMG, a New Zealand partnership

and a member firm of the KPMG network
of independent member firms affiliated
with KPMG International, a Swiss
cooperative. All rights reserved. Printed in
New Zealand.
The KPMG logo and names are trademarks
of KPMG.
KPMGA/W-3015

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