Free Defense Contractor 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 $125,000 for the development of an armed and unarmed defense contractor service while showcasing the expected financials and operations over the next three years. Defense Contractor, Inc. (“the Company”) is a New York based corporation that will provide armed and unarmed defense services to the government in its targeted market. The Company was founded by John Doe.
1.1 Products and Services
The Company will operate two primary business segments: armed guard and unarmed defense services. Primarily, the Company will contract ex-military professionals in an armed capacity to act as a liaison for important civilian employees within the United States and abroad. All revenues will be generated from contracts obtained by the US Federal Government. The third section of the business plan will further describe the services offered by Defense Contractor, Inc.
1.2 The Financing
Mr. Doe is seeking to raise $125,000 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. The financing will be used for the following: • Development of the Company’s office location. • Financing for the first six months of operation. • Capital to purchase equipment related to rendering services. Mr. Doe will contribute $25,000 to the venture.
1.3 Mission Statement
Defense Contractor mission is to provide customers with an expansive line of armed and unarmed security services for the US Federal Government.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the security 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 allow the business to generate contracts from the US Federal Government.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Defense Contractor, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, Defense Contractor requires $125,000 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 Defense Contractor, 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 Defense Contractor. 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 services offered by Defense Contractor, Inc.
3.1 Defense Contractor Services
The business, as stated in the executive summary, will generate income from providing armed protection services to high level government personnel as it relates to the US Federal Government. Additionally, the Company will ensure that each of its armed defense contractors are properly trained to use a firearm and that they possess the proper state licensing to carry a weapon (either visibly or concealed) and that they are licensed in the State to act as a licensed defense contractor. Management anticipates that a majority of its armed personnel will be ex-military. The business will always comply with all federal, state, and local laws regarding the use of armed personnel and their handling of firearms. Each individual contractor will be required to pass a background check and their firearm will be registered with the state.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the defense contractor 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 moderate. The meltdown of the sub prime mortgage market coupled with increasing gas prices has led many people to believe that the US is on the cusp of a double dip economic recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. However, defense contractors tend to operate with a strong amount of economic stability as government VIPs will continue to require certain levels protection regardless of the general economic environment.
4.2 Industry Analysis
The private defense contracting (for personnel services) has over 6,600 firms that operate in both an armed and unarmed capacity within the United States. Each year these businesses aggregately generate more than $9 billion dollars a year, and employ more than 46,000 people. Average annual payrolls for the private defense contracting industry (as it relates to personnel services) have exceeded $6.2 billion dollars in each of the last five years. The growth of this industry has been remarkable over the last ten years, as more conflicts have caused the US Government to hire outsourced defense contractors. During this time, the number of businesses that operate within this industry has increased more than 14%, while revenues from defense contracts have increased more than 55%. This discrepancy in the increase of businesses versus the increase of receipts is primarily due to the increase in demand for these services. The market is still catching up with the demand for these services.
4.3 Customer Profile
Management anticipates that the only client of the business will be the US Federal Government (for both civilian and armed services departments).
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
Defense Contractor, Inc. 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 Company.
5.1 Marketing Objectives
5.2 Marketing Strategies
The marketing required by the Defense Contractor will be limited as the business is only intending on doing business with the US Federal Government. In order to effectively generate defense contracts the business will hire a defense contract advisor to assist the business with effectively bidding for contracts that suit the Company’s line of defense contracting services. Finally, the Company will develop an online website that will showcase the services offered by Defense Contractor, licensure information, and how to contact the Company for its services.
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
• Defense Contractor, Inc. will have an annual revenue growth rate of 10% per year.
• The Owner will acquire $125,000 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 business’s revenues are not sensitive to the overall economy. The income that will be generated from services will solely come from the US Federal Government. As such, the business will be able to remain profitable and cash flow positive all times.
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