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SECTIONTHREEBusiness PlanF. Operations PlanSummarize how the business will operate. List outthe facility/location and the equipment. If you arephasing out the operational plan, list that here.What are your goals in the operations strategies?And lastly, what are the timeframes of these goals?G. Risk AnalysisBeing realistic with your business is key.Outline all the risks you know that couldaffect the success of your business.Identify how these risks can be mitigated.Know that there are two types of risks.1. Controllable risks – those than can notnecessarily be prevented but they can beminimized, such as having insurance2. Uncontrollable – those that would have ahuge financial impact such a large new competitor within your market area, economyrecessions, new and improved technology,change in trends, price wars, and a pandemicthat affects all.Identify what steps can be taken toreduce or eliminate these risks.Comment here what your SCOTs are:StrengthsChallengesOpportunitiesThreats102021 CFDC of CIFN Business Plan WorkbookYOUR NOTES

SECTIONTHREEBusiness PlanYOUR NOTESH. Marketing PlanThis is one of the most vital sections of a business plan.List out your marketing objectives and includedates and strategies for each objective.Why would this be important? To make orincrease your profits, increase your salesvolume, or attain income levels.Focus on what you plan to achieve and makesure each objective is possible to achieve.For each objective, break down thesteps to achieving each one.Do your market research. Who is your customer,where are your customers? How will yourcustomers purchase your goods/services.What market research have you compiled?What are the market trends, what are theconditions? Where are your competitors? Whatwould you expect your market share to be?I. MarketList out your market. Identify the location of yourmarket. Is it community based or provincial or national?Show that you have done research on themarket, this shows that you have identifiedthe viability of your business startup.Having a sound foundation of market researchwill assist you in determining your financialforecasts (later in this workbook).Identify if there are any seasonal lowsand highs to your market. How are yougoing to manage these fluctuations?List out any strengths and weaknesses tothe market, include any competitors.How are you going to establish a marketshare in the industry of your business?2021 CFDC of CIFN Business Plan Workbook11

SECTIONTHREEBusiness PlanJ. Pricing of your goods/servicesIt will be assumed that you know how you will setyour prices. Summarize how you will be doing that.You may want to identify some of your competitorpricings in this section. And that will allow youto determine what the average pricing is.Are there any governing laws to the pricing ofyour goods/services, if so, identify here.How will your customer pay for your goods/services? What functions will you have in place andwhat options will you offer to your customers?Is your new business something that developedfrom a hobby of yours? Now is the time tothink about making it a profitable business.K. Customer ServiceThis reflects your mission and visionstatement. How important is customerservice to you and your business?How will you review the successof your customer service?How is responsible for quality andconsistent customer service?Will you have any rewards or perksto returning customers?In your business plan, comment on howimportant customer service will be andhow is it a key success factor.122021 CFDC of CIFN Business Plan WorkbookYOUR NOTES

SECTIONBusiness PlanYOUR NOTESTHREEL. Advertising and PromotionHow important is ongoing advertising andpromotion to the success of your business?What are your advertising strategies and goals?What methods will you use to advertise?It is important to identify your strategy inadvertising and promotion to ensure that you aremaintaining and growing your customer base.It is also important to understand all methodsof advertising pertinent to your businessand your customer demographics.How often will you advertise? How oftenwill you revisit your advertising tasks?Do you have a logo to your business?Do you have a slogan?Will you outsource your advertising strategies?Many businesses have built success onhaving a corporate culture? How do youwant to promote your corporate culture?What does that mean to you?2021 CFDC of CIFN Business Plan Workbook13

SECTIONFOURFinancial statements/projectionsPlease pay particular attention to this section of your business plan. Understanding all the necessary financialcomponents of your business plan and business operations will be vital to the success of your business.Having a complete and thorough financial plan will not only allow you to continue to use yourbusiness plan as a financial guide and to generate profits, it will allow your reader (investoror lender) clarity on the reason they are reading and assessing your business plan.A. Financial Project PlanThis section will include a table. It’s called Sources and Uses. It is important that as owner,you know what funds are needed and why. Ask yourself, “what dollars do I need to startup my business, and in what time period will these dollars be available to me before I canfully operate my business with no additionally funding (investment or loan) dollars.”While doing research on types of loans that could be available to you and what loans you would qualifyfor, you are making a proposal on those dollars and you highlight that in this section. Some lenders willnot lend towards some of your costs, such as some operating costs like debt repayment or wages and mayhave restrictions on some eligible costs, such as non-arms length transactions, older, used equipment or ifthey include vendor financing. Other factors influencing lending or funding decisions: your experience orlevel of involvement; your business may operate in an industry that might be considered either exploitativeor contrary to the values of that lender; demonstrated need; or creation of Aboriginal employment.While doing this research, be mindful that you are required to inject your own dollars into the start up ofyour business. This is often called “Owners Equity”. For loans and grants, there could be a range of equityrequirements that you will need to know. The more equity (your own dollars) you put into your business, theless you need to borrow. Your business project is much stronger when you put more equity into the business.A sample Sources and Uses table is as follows:SOURCES%USES%Equity 10%Equipment65%Loan 70%Working Capital28%Grant 20%Marketing8%TOTAL TOTAL100%Know what minimal equity you need to qualify for various loans/grants.Consider allowing a margin for extra costs or unexpected increased costs, sometimes called “contingency”.Include a narrative of how vital the required funds are and how it contributes to the success of the business.YOUR NOTES142021 CFDC of CIFN Business Plan Workbook

SECTIONFinancial statements/projectionsYOUR NOTESFOURB. Financial ProjectionsGenerally, this section should includefour documents. They are: Balance Sheet Income Statement Projected Cash flow Break even AnalysisBalance Sheet & Income Statement wouldbe necessary if your business already existedand was generating income. A Balance Sheetcould also be included if you are starting outyour business, and would like to show yourassets, equipment, cash at start up month.A Balance Sheet is a statement that lists out assetsand liabilities of a business at a specific point of time.An Income Statement is a statement that identifiesthe businesses revenue and expenses over aperiod of time. The difference between revenueand expenses will be the profit or net revenue.Table Balance Sheets and Income Statementsare included on page 17-20.2021 CFDC of CIFN Business Plan Workbook15

SECTIONFOURFinancial statements/projectionsC. Break Even CalculationBreak Even Calculation allows you to determinewhat you need to sell (monthly and annually) tocover all your costs (including debt servicing).Knowing what your break-even point is crucial,as you need to pay your expenses and loanpayment, but you also have to pay yourself.Break-even is when your total revenue equalsyour total costs. Break-even is a point thatyou do not make a profit or a loss. When yourrevenue is more than your break even, is whenyou will generate a profit for your business.Finding out what your break-even is willhelp you determine if you need to increaseyour prices or cut down some expenses.To calculate what your break-even is, you firstly haveto identify what costs are variable and what costsare fixed. Fixed costs are those costs that remainthe same, no matter what your revenue is. Exampleswould be your loan payment, rent, and insurance.Variable costs are costs based on your sales activity.Examples would be your direct materials and labour.The formula to calculateyour break even is:Break Even Fixed Costs/(Sales Per Unit - Variable Costs)Here’s an example:A toy store has fixed costs of 6,000 per month.And the product (toy) has a variable cost of 25.The sales price for that toy is 50. Therefore:Break Even is: 6,000/( 50- 25) 240This means that 240 toys must be sold permonth to meet all costs, that is the break even.162021 CFDC of CIFN Business Plan WorkbookYOUR NOTES

SECTIONFinancial statements/projectionsFOURD. Balance Sheet TemplateYour Business Name:FIXED ASSETSLand and Buildings0.00Motor 0Total Fixed Assets0.00DEPRECIATIONLand and Buildings0.00Motor 0Total Depreciation0.00Value of fixed assets0.00CURRENT ASSETSBank Account - Current0.00Bank Account - Savings0.00Cash0.00Prepayments0.00Accounts Receivable0.00Total Current Assets0.00CURRENT LIABILITIESAccounts Payable0.00Loan0.00Accruals0.00Total Current Liabilities0.00Net Assets0.00EQUITYOpening Balance0.00Shareholder funds0.00Retained Earnings0.00Drawings0.00Total Equity0.002021 CFDC of CIFN Business Plan Workbook17

SECTIONFOURFinancial statements/projectionsE. 12-Month Profit and Loss Projection TemplateJanuary - JuneCompany name:Fiscal Year Begins Jan-21January-2021February-2021REVENUE (SALES)Category 1Category 2Category 3Category 4Category 5Category 6Category 7Total Revenue (Sales)COST OF SALESCategory 1Category 2Category 3Category 4Category 5Category 6Category 7Total Cost of SalesGross ProfitEXPENSESSalary expensesPayroll expensesOutside servicesSupplies (officeand operating)Repairs and maintenanceAdvertisingCar, delivery and travelAccounting and legalRent & Related CostsTelephoneUtilitiesInsuranceTaxes (real estate, etc.)InterestDepreciationOther expenses (specify)Other expenses (specify)Other expenses (specify)Misc. (unspecified)Total ExpensesNet Profit Before TaxesIncome TaxesNet Operating Income182021 CFDC of CIFN Business Plan WorkbookMarch-2021April-2021May-2021June-2021

SECTIONFinancial statements/projectionsFOURJuly - DecemberCompany 1November-2021December-2021REVENUE (SALES)Category 1Category 2Category 3Category 4Category 5Category 6Category 7Total Revenue (Sales)COST OF SALESCategory 1Category 2Category 3Category 4Category 5Category 6Category 7Total Cost of SalesGross ProfitEXPENSESSalary expensesPayroll expensesOutside servicesSupplies (officeand operating)Repairs and maintenanceAdvertisingCar, delivery and travelAccounting and legalRent & Related CostsTelephoneUtilitiesInsuranceTaxes (real estate, etc.)InterestDepreciationOther expenses (specify)Other expenses (specify)Other expenses (specify)Misc. (unspecified)Total ExpensesNet Profit Before TaxesIncome TaxesNet Operating Income2021 CFDC of CIFN Business Plan Workbook19

SECTIONFOURFinancial statements/projectionsF. Income StatementREVENUEAmountCompany NameCurrent MonthAmountPeriod ending dateYear to DateAmountCompany NameCurrent MonthAmountPeriod ending dateYear to DateAmountCompany NameCurrent MonthAmountPeriod ending dateYear to DateAmountCompany NameCurrent MonthAmountPeriod ending dateYear to DateGross salesLess sales returns and allowancesNet salesCost of SalesBEGINNING INVENTORYPlus goods purchased/manufacturedTotal goods availableLess ending inventoryTotal cost of goods soldGross profit (loss)Operating ExpensesSELLINGSalaries and wagesCommissionsAdvertisingDepreciationTotal selling expensesGENERAL/ADMINISTRATIVESalaries and wagesEmployee benefitsPayroll taxesInsuranceRentUtilitiesDepreciation and amortizationOffice suppliesTravel and entertainmentPostageEquipment maintenance and rentalInterestFurniture and equipmentTotal General/Administrative expensesTotal operating expensesNet income before taxesTaxes on incomeNet income after taxesExtraordinary gain or lossIncome tax on extraordinary gainNet Income (Loss)202021 CFDC of CIFN Business Plan Workbook

SECTIONAdditional information that will assistyou in developing your business planA. General FrequentlyAsked Questions:How do I register my business name?You must have your business name approved prior toregistering your business. You can access the requiredform from the internet, www.onestopbc.ca or youcan go to your nearest Government Agents office.There is a fee for this service. When completing theform you will be asked to come up with three possiblenames with your top priority listed as number 1.FIVEHow do I approach a bank?When a bank assesses your application for fundsthey will look at four key factors: Character,Capacity, Cash F low and Collateral. (The 4 C’s)Character – A bank tries to evaluate your ability tomanage the business. You must show that you haveexpertise, skills, determination and self-confidencenecessary to be a successful businessperson.Capacity – Your business plan must be clear,structured and include all the right parts.Once your business name is approvedit will be reserved for 56 days.Cash Flow – A bank wants to know yourpersonal worth to judge your ability to repayyour loan and meet your financial obligations.Do I need to open a business bank account?Collateral – Banks will ask for some investmentfrom you as proof of your commitment.Most banks will require proof that you have registeredyour business with the Corporate Registrars officeprior to opening a business account for you.How do I get money to start up?Some entrepreneurs have provided their ownbusiness financing by using their savings.Others go through banks or other lendingagencies to obtain business loans.There are also government programs thatprovide loans for Aboriginal business owners.For more information visit the Aboriginal BusinessService Network at www.cbsc.org/absnWhat is the difference betweenloans and equity?Loans have to be repaid within acertain amount of time.Equity is the value of all contributions you maketo the business from personal resources such ascash, equipment, time and energy invested etc.Because individuals living on-reserve may notbe able to provide the necessary collateral, theother three key factors become very importantto the bank. It is important that you are thinkingabout starting a business, you establish a goodworking relationship with your bank or creditunion and maintain an excellent credit rating.What kind of business recordsdo I need to keep?Whether you are a sole proprietor, corporation orpartnership you have to keep an efficient recordand accounting system. It is recommended youcontact the nearest Canada Customs and RevenueAgency office for relevant forms, information onexpense deductions, income tax forms etc.For more information contact:Canada Customs and Revenue Agency, Tax ServicesVancouver District Office1166 West Pender StreetVancouver, BCV6E 3H8Business Enquiries: 1-800-959-55252021 CFDC of CIFN Business Plan Workbook21

SECTIONFIVEAdditional information that will assistyou in developing your business planWhat is market research?Research gives the business ownerinformation about potential and existingcustomers, competition and the industry.What is the difference betweenprimary and secondary research?Primary Research:Primary research is information collected by interviewor questionnaire designed for a specific need.Secondary Research:Information that has already been gathered bysomeone else ie. Government organizations, StatisticsCanada, trade associations, chambers of commerce.What kind of research will I have to do?You will need to research the following:Customer: Who are they? Where do they live? How much do they make? What’s their occupation? What is their lifestyle? Why are they buying? How much are they buying?Industry: Actual and potential size of the industry. Is the industry predicted to grow? Trends in the industry. What are the skills needed for the industry?What are business ethics?Ethics are moral obligations placed on businessowners in a community to be fair and honest in alltheir business dealings with customers and suppliers. What is good and evil? What is right and wrong? Just and unjust.Are there any payoffs for practicinggood business ethics?By dealing fairly and honestly with peoplethey will come back to us for more businessand hopefully make referrals.Acting ethically can keep you safefrom any kind of legal trouble.Questions to ask yourself.

BUSINESS PLAN WORKBOOK A guide to assist you in developing and writing your own Business Plan. 2 2021 CFDC of CIFN Business Plan Workbook. Use this workbook to assist you in determining if you are ready to become an entrepreneur, or if you hav