Free Bookkeeping Practice Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
- All plans are updated for 2013!
1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a bookkeeping practice while showcasing the expected financials and operations over the next three years. The Bookkeeping Practice, Inc. (“the Company”) is a New York based corporation that will provide business bookkeeping and tax preparation to customers in its targeted market. The Company was founded by John Doe.
1.1 Products and Services
As stated above, the business’s primary stream of revenue will come from the sale of business bookkeeping services to small and medium sized businesses within the target market. These services will primarily consist of accounts receivable, accounts payable, general ledger management, and cash flow management in conjunction with accounting software suites such as QuickBooks, Microsoft Money, and Peachtree Accounting. The secondary streams of revenue will come from small business tax preparation services. During the primary tax season (February to April), the business will assist small business owners with preparing their yearly tax returns. The third section of the business plan will further describe the services offered by the Bookkeeping Practice.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
The Bookkeeping Practice’s mission is to become the recognized leader in its targeted market for business bookkeeping and tax preparation services.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the accounting industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals and corporations within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Bookkeeping Practice, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Bookkeeping Practice requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Bookkeeping Practice, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Bookkeeping Practice. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
Below is a description of the bookkeeping and tax preparation services offered by the Bookkeeping Practice.
3.1 Bookkeeping Services
The primary revenue source for the business will come from bookkeeping services for small and medium sized businesses. Primarily, the Bookkeeping Practice’s clientele will consist of business owners that are simply too busy to do their own accounting or own to small of a firm to hire someone on a full time basis. The Company will provide full-charge bookkeeping services, which will consist of overseeing and managing a small/medium sized business’s accounts receivable, accounts payable, invoicing, general ledger entries, payroll entries, basic inventory management, and other core accounting functions. The Bookkeeping Practice will bill its clients on a per hour basis. Pricing for these services will be further discussed in the fifth section of the business plan.
3.2 Tax Preparation Services
Seasonally, the Bookkeeping Practice will make a substantial amount of money for filing tax returns for businesses. Each tax return will generate $300 to $1,000 depending on the complexity and the amount of paperwork to file.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the bookkeeping industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2010, at which point the economy will begin a prolonged recovery period. However, Bookkeepers operate with great economic stability as small and medium sized business owners will continue to require bookkeeping services despite deleterious economic conditions.
4.2 Industry Analysis
The accounting and bookkeeping industry is a highly fragmented group of individual practitioners, small firms, and large auditing institution. There are over 621,000 accountants in the United States. The industry generates over $38 billion dollars a year, and employs over 390,000 Americans. The demand for accounting/bookkeeping services is expected to increase as the number of businesses and the complication of tax issues increase. One of the most common trends within the accounting industry is to develop ancillary investment management and small lending services (such as mortgage origination and loan rebate checks). In the future, the Bookkeeping Practice may develop these services to greatly increase the revenues of the business.
4.3 Customer Profile
The Bookkeeping Practice’s average client will be a small to medium sized business within the Company’s target market. Common traits among clients will include: • Annual revenues exceeding $200,000 • Lives or works no more than 15 miles from the Company’s location. • Will spend $250 per month on bookkeeping services with the Bookkeeping Practice.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Bookkeeping Practice intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Bookkeeping Practice.
5.1 Marketing Objectives
• Establish relationships with certified public accountants in the Bookkeeping Practice’s targeted market.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Bookkeeping Practice to easily target small and medium sized businesses within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. The Bookkeeping Practice will also use an internet based strategy. This is very important as many people seeking local services, such as bookkeepers, now the Internet to conduct their preliminary searches. Mr. Doe will register the Bookkeeping Practice with online portals so that potential clients can easily reach the business. The Company will also develop its own online website, which will showcase Mr. Doe’s experience in the accounting industry, contact information, and preliminary pricing information. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the bookkeeping and tax preparation that the Company is selling. Mr. Doe will also develop relationships with certified public accounting firms that will generate substantial amounts of referral business for the Company.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• The Bookkeeping Practice will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $100,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
The Company’s revenues are not sensitive to changes in the general economy. Despite deleterious economic changes, people and small businesses will require tax advice as well as regular accounting services. As such, only trained professionals, like those employed by the Bookkeeping Practice, can render these services. Only a severe economic downturn could result in a decline in the Company’s revenues.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis