Business Plan Checklist.

* A general description of the business, includ-

ing the product or service;

* Historical development of the business, in-

cluding:

- Name, date and place (state) of formation;

- Legal structure (proprietorship, partnership,

corporation);

- Significant changes (including dates) in own-

ership, structure, new products or lines, and

acquisitions;

- Subsidiaries and degree of ownership, includ-

ing minority interests;

- Principals and the roles they played in the

formation of the company.

The Product or Service

Describe the present or planned product or ser-

vice lines, including:

* Relative importance of each product or service

including sales projections, if possible;

* Product evaluation (use, quality, performance);

* Comparison to competitors' products or services

and competitive advantages over other producers;

* Demand for product or service and factors af-

fecting demand other than price.

The Project

If financing is sought for a specific project,

describe the project, the purpose for which it is

undertaken, its cost and the amount, and the form

and use of the financial assistance.

Management

* Organizational chart;

* Key individuals (include supervisory personnel

with special value to the organization):

- Responsibilities;

- Personal resumes (describing skills and experi-

ence as they relate to activities of the business);

- Present salaries (include other compensation

such as stock options, bonuses);

-Planned staff additions.

* Other employees:

- Number of employees at year end, total payroll

expenses for each of previous five years (if ap-

plicable) broken down by wages and benefits;

- Method of compensation;

- Departmental or divisional breakdown of work

force.

* Planned staff additions.

Ownership

* Names, addresses, business affiliations of prin-

cipal holders of subject's common stock and other

types of equity securities (include details on

holdings);

* Degree to which principal holders are involved

in management;

* Principal non-management holders;  

* Names of board of directors, areas of expertise

and role of board when business is operational;

* Amount of stock currently authorized and issued.

Marketing Strategy/Market Analysis

* Description of the industry. Include:

- Industry outlook;

- Principal markets (commercial/industrial, con-

sumer, government, international);

-Industry size - current as well as anticipated

in the next 10 years (explain sources of pro-

jections);

- Major characteristics of the industry. Effects

of major social, economic, technological or regu-

latory trends on the industry.

* Description of major customers. Include:

- Names, locations, products or services sold to

each;

- Percentage of annual sales volume for each cus-

tomer over previous five  years (if applicable);

- Duration and condition of contracts in place.

* Description of market and its major segments.

Include:

- Principal market participants and their per-

formance;

- Target market;

- Customer requirements and ways of filling those

requirements;

- Buying habits of customers and impact on custo-

mers using your product or service.

* Description of competition: companies with which

your business competes and how your business com-

pares with these companies.  This section is a

more detailed narrative than that contained in

the description of the product or service above.

* Description of prospective customers. Include

reaction to your firm and any of its products or

services they have seen or tested.

* Description of firm's marketing activities. In-

clude:

- Overall marketing strategy;

- Pricing policy;

- Method of selling, distributing and servicing

the product;

- Geographic penetration, field product support,

advertising, public relations and promotions, and

priorities among these activities.

* Description of selling activities. Include the

method for identifying prospective customers and

how and in what order you will contact the rele-

vant decision-makers. Also describe your sales

effort--sales channels and terms, number of sales-

persons, number of sales contacts, anticipated

time, initial order size--and estimated sales and

market share.

Technology

* Describe technical status of your product--idea

stage, development stage, prototype--and the rele-

vant activities, milestones and other steps neces-

sary to bring the product into production.

* Present patent or copyright position (if appli-

cable). Include how much is patented and how much

can be patented (how comprehensive and effective

the patents or copyrights will be).  Include a

list of patents, copyrights, licenses or state-

ments of proprietary interest in the product or

product line.

* Describe new technologies that may become prac-

tical in the next five years that may affect the

product.

* Describe new products (derived from first gene-

ration products) the firm plans to develop to

meet changing needs.

* Describe regulatory or approval requirements and

status, and discuss any other technical and legal

considerations that may be relevant to the tech-

nological development of the product.

* Describe research and development efforts and

future plans for research and development.

Production/Operating Plan

* Explain how the firm will perform production or

delivery of service. Describe in terms of:

- Physical facilities--owned or leased, size and

location, expansion capabilities, types and quan-

tities of equipment needed.  Include a facilities

plan and description of planned capital improve-

ments (if any) and timetable for those improve-

ments.

-Suppliers: names and locations, length of lead

time required, usual terms of purchase, contracts

(amounts, duration and condition) and subcontrac-

tors.

- Labor supply (current and planned): number of

employees, unionization, stability (seasonal or

cyclical), and fringe benefits.

- Technologies/skills required to develop and manu-

facture the products.

- Cost breakdown for materials, labor and manufac-

turing overhead for each product, plus cost versus

volume curves for each product or service.

- Manufacturing process.

* Describe production or operating advantages of

the firm;  discuss whether they are expected to

continue.

* Specify standard product costs at different

volume levels.

* Present a schedule of work for the next one to

two years.

Financial

* Auditor: name, address;

* Legal counsel: name, address;

* Banker: name, location, contact officer;

* Controls: cost system used and budgets used;

* Describe cash requirements, now and over the

next five years, and how these funds will be used;

* Amount to be raised from debt and amount from

equity;

* Plans to "go public" -- relate this to future

value and liquidity of investments;

* Financial statements and projections for next

five years:

- Profit and loss or income statements by month

until breakeven point, and then by quarter;

-Balance sheets as of the end of each year;

- Cash budgets and cash flow projections;

- Capital budgets for equipment and other capital

acquisitions;

- Manufacturing/shipping plan.

If financing is sought, most lenders and venture

capitalists require:

* A funding request indicating the desired finan-

cing, capitalization, use of funds and future

financing;

* Financial statements for the past three years,

if applicable;

* Current financial statements;

* Monthly cash flow financial projection, includ-

ing the proposed financing, for two years;

* Projected balance sheets, income statement and

statement of changes in financial position for

two years including the proposed financing.