• Mission Statement
• Company Vision

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Products or Services

• Description of Product/Service
• Advantages of Product/Service
• Proprietary Features
• Product Development Activities
• Product Liability

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Industry Analysis

• Industry Overview
• Company Niche
• Industry Participants
• Industry Trends and Growth Patterns

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Marketing Information

• Market size and history, demographics and size of customer base
• Your cost versus competition
• Competition, and how you plan to compete to gain market share
• Competitive edge (why your products/services will be successful)
• Pricing and profitability of products/services
• Advertising and promotion plans
• Marketing strategy, distribution channels and sales force

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Facilities and Operations

• Location and description of facilities
• Capital equipment requirements
• Labor force needs
• Cost and quality control
• Suppliers and extent of outsourcing, if any
• Major Risks
• Major Obstacles to Success

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Financial Information

If possible have an outside source (such as an independent accountant or the SBDC at a nearby university) prepare the following information

• Desired financing, use of proceeds (provide quotes from sources such as capital equipment suppliers, contractors, etc. in the Appendix section)
• Payback and collateral
• Balance sheet and income statement for past two years (if new company, include financial information on major principals)
• Sales and cost data
• Profit and loss/cash flow forecast, by month for first year, by year for years two and three
• Breakeven analysis
• Summary of all significant assumptions used in forecast

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Appendix
Include information such as biographical information on owners/management team members, quotes from equipment manufacturers/suppliers/contractors, letters from potential/existing customers, published reports on industry trends, product catalogs, etc.

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Income, and Expense Accounts to consider in developing budget for new business

Income
Cash Sales
Credit Sales
Misc. Income
Accounts Receivable
     Allowance for Bad Debts

Expenses
Inventory (Raw Material or products)
Owner/Management Salaries
Other Salaries and Wages
Payroll Taxes & Expenses

     Social Security, Medicare, Federal (FUTA) and State Unemployment Taxes, Unemployment Compensation,

     Worker’s Comp (when you start paying them)     
Furniture/Equipment Purchased
     Depreciation

Accounts Payable
Contracted Services
Repairs & Maintenance
Supplies (Office & Operating)
Advertising/Marketing
Car, Delivery, & Travel
Accounting & Legal
Rent
Telephone
Utilities
Insurance
Taxes & Licenses
Interest on Loans
Other (Specify)
Misc                          Small (very) items that may not fit elsewhere

Note – there may be other expense accounts that will need to be added as you grow, or
that are particular to your business.

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BUSINESS INSURANCE

Essential Coverage

Because a business is more vulnerable to liability and property damage claims than an individual, you will need to protect yourself from the potentially devastating effects of such claims through insurance. The following briefly describes some of the types of insurance that you need to consider for your business.

Bodily Injury and Property Damage Liability. This is similar in concept to the liability insurance you carry on your car, but contains additional provisions that apply to businesses. There are two types:

• General Liability Insurance: Protects the company against financial loss due to bodily injury and property damage claims arising out of the insured firm's legal liability. There are three basic policies: Owners', Landlords' and Tenants (OL&T), Manufacturers’ and Contractors' (M&C), and Comprehensive General Liability (CGL). Basic policies usually contain exclusions that you may want to insure against through additional coverage. Check to see if your policies cover the appropriate items below:

Personal or family auto insurance is not generally adequate for vehicles used in commerce, whether owned by the company or by the firm's employees. Such vehicles should be included in your business liability coverage.

• Commercial Umbrella Insurance: Protects a business from truly catastrophic losses. It provides coverage above the limits of your general liability policies. Coverage for losses from perils not covered in your other insurance always carries large deductibles.

Workmen's Compensation Insurance: As an employer, you are obliged by law to provide your employees with safe working conditions and tools, competent fellow workers and warnings of any hazards in the workplace. An employee injured in the course of his or her duties is automatically entitled under workmen's compensation laws to four types of benefits -- medical, disability income, death, and rehabilitation. There are three elements in workmen's compensation insurance:

• Worker's Compensation. This coverage is required under the workmen's compensation statutes of the State of Louisiana.

• Employer's Liability Insurance: This covers claims under common law for work-related injuries suffered in the course of employment whether or not it is on the job site.

• All State Endorsement: This provides automatic coverage for workmen's compensation claims in states not listed in the policy declaration.

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Desirable Coverage

Not all hazards are covered by the policies listed above. Depending on the nature of your business, you may need to consider some of the following forms of coverage.

• Inland Marine Coverage: An umbrella term for various types of policies covering business personal property that is frequently excluded or only covered to a limited degree by general policies. It covers such things as accounts receivable, valuable papers, customers’ goods, property in transit, neon signs and property away from premises.
• Business Interruption Insurance: Covers loss of profits and continuing fixed charges while the business is out of operation or limited in its capabilities following a fire or other disabling event. Other liabilities that can be insured against include loss of rents, extra expense of operation and leasehold interest coverage.
• Sprinkler Leakage Insurance: Insures against damage from accidental fire sprinkler discharge.
• Boiler and Machinery Insurance: Covers boiler failures or explosions, air conditioning and refrigeration systems, transformers and electrical panel boards, water heaters, piping, compressors, fans and electric motors.
• Glass Insurance: Covers the cost of replacing of plate glass damaged by almost all causes.

This list does not include all of the insurance possibilities available to businesses. It would be worth your time to discuss your business’ insurance needs with at least two qualified insurance agents.

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The Coordinating and Development Corp.
5210 Hollywood Avenue, P. O. Box 37005
Shreveport, LA 71133-7005
Phone: (318) 632-2022
Fax/TDD: (318) 632-2099
E-mail: info@cdconline.org

Copyright 2003, The Coordinating and Development Corporation. Redistribution to all others interested in economic development is strongly encouraged. Please cite The Coordinating and Development Corporation whenever portions are reproduced or redirected.

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