Business Plan Outline
Non-disclosure
1.0 Executive Summary
   1.1 Mission Statement
   1.2 The Enterprise
   1.3 Key Personnel
   1.4 The Market
   1.5 The Offering
   1.6 Marketing Strategy
   1.7 Competition
   1.8 Projections
   1.9 Resource Requirements
   1.10 Key Issues
2.0 The Enterprise
   2.1 Objectives
   2.2 History
   2.3 Organization
     2.3.1 Key Personnel
     2.3.2 Personnel Count
   2.4 Operations
   2.5 The Future
3.0 The Market
   3.1 Market Segments
   3.2 Prospects
   3.3 Prospect Objectives
   3.4 Segmentation
   3.5 Size
   3.6 Environment
   3.7 Alternatives
4.0 The Offering
   4.1 Description
   4.2 Market Status
   4.3 Value
   4.4 Cost to Produce
   4.5 Support
5.0 Marketing Strategy
   5.1 Targets
   5.2 Image
   5.3 Promotion
     5.3.1 Internet Web Site
     5.3.2 Publicity
     5.3.3 Advertising
   5.4 Pricing
   5.5 Sales
   5.6 Distribution
   5.7 Logistics
   5.8 Support
6.0 Competitive Analysis
7.0 Development Program
   7.1 Objectives
   7.2 Organization
   7.3 Market Status
   7.4 Schedules
   7.5 Technology
8.0 Operations / Production
   8.1 Organization
   8.2 Suppliers
   8.3 Sub-contractors
   8.4 Technology
   8.5 Quality
   8.6 Inventory
9.0 Investment Capital
   9.1 Initial Funding
   9.2 Use of Funds
   9.3 Return on Investment
10.0 Historical Financials
   10.1 Income Statement
   10.2 Balance Sheet
   10.3 Cash Flow
11.0 Financial Projections
   11.1 Year One Income Statement
   11.2 Year Two Income Statement
   11.3 Five Year Income Statement
   11.4 Year One Cash Flow
   11.5 Year Two Cash Flow
   11.6 Five Year Cash Flow
   11.7 Balance Sheet
12.0 Financial Alternatives
   12.1 Best Case
   12.2 Worst Case
13.0 Financial Addendums
   13.1 Assumptions
   13.2 Ratios
   13.3 Income Statement Comparison
   13.4 Balance Sheet Comparison

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13.2 Ratios

Explanation

Your business plan should include calculations of the following ratios. If you are using business plan software to write your plan, these ratios will be calculated for you automatically.

Cash Ratio
A measure of the amount of cash available to offset current debt. A ratio below .5 may mean you are having cash flow problems, possibly because of a significant backlog in accounts receivable.

Quick Ratio
A measure of the amount of liquid assets available to offset current debt. A healthy enterprise will always keep this ratio at 1.0 or higher.

Current Ratio
A measure of the degree to which current assets cover current liabilities. A high ratio indicates a good probability the enterprise can retire current debts. A ratio of 2.0 or higher is a comfortable financial position.

Current Liabilities to Net Worth
A measure of the extent to which the enterprise is using creditor funds versus their own investment to finance the business. A ratio of .5 or higher may indicate inadequate owner investment or an extended accounts payable period. Care should be taken not to offend your vendors (creditors) to the extent it affects your ability to conduct day to day business.

Total Liabilities to Net Worth
A measure of the extent that the net worth of the enterprise can offset the liabilities. A ratio greater than 1.0 should be avoided, since it indicates the creditors have a greater stake in the business than the owners.

Fixed Assets to Net Worth
A measure of the extent of investment in non-liquid and often over valued fixed assets. A ratio of .75 or higher is usually undesirable as it indicates possible over-investment and causes a largge annual depreciation charge that will be deducted from the income statement.

Fixed Assets to Total Assets
A measure of the extent to which fixed assets are financed with owners equity (capital). A high ration of .5 or higher indicates an inefficient use of working capital which reduces the ability to carry accounts receivable and maintain inventory and usually meanas a low cash reserve. This will often limit your ability to respond to increased demand for your products or services.

Sample from CitiLoc, Inc.

 Ind. Avg.20092010201120122013
Cash Ratio 0.44-2.3215.8749.2791.84150.99
Quick Ratio 1.21-2.3239.7758.58103.42165.87
Current Ratio 1.28-2.3239.7758.58103.42165.87
Current Liabilities to Net Worth1.16 0.00 0.02 0.02 0.010.01
Total Liabilities to Net Worth 2.32 0.00 0.02 0.02 0.010.01
Fixed Assets to Net Worth 0.51 0.00 0.05 0.02 0.010.00
Fixed Assets to Total Assets 0.15 0.00 0.05 0.02 0.010.00