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Article 22. Outline for a Business Plan 2. Narrative description of the chartB. Key Managers (complete resumes should be presented in an appendix to the business plan)1. Name2. Position3. Brief position description, including primary duties4. Primary responsibilities and authority5. Unique skills and experiences that add to your company’s distinctive competencies6. Compensation basis and levels (be sure they are reasonable—not too high and not too low)C. Planned Additions to the Current Management Team1. Position2. Primary responsibilities and authority3. Requisite skills and experience4. Recruitment process5. Timing of employment6. Anticipated contribution to the company’s success7. Compensation basis and levels (be sure they are in line with the market)D. Legal Structure of the Business1. Corporationa. C corporationb. S corporation2. Partnershipa. Generalb. Limited3. ProprietorshipE. Owners1. Names2. Percentage ownership3. Extent of involvement with the company4. Form of ownershipa. Common stockb. Preferred stockc. General partnerd. Limited partner5. Outstanding equity equivalentsa. Optionsb. Warrantsc. Convertible debt6. Common stocka. Authorizedb. IssuedF. Board of Directors1. Names2. Position on the board3. Extent of involvement with the company4. Background5. Contribution to the company’s successa. Historicallyb. In the futureVIII. Funds Required and Their UsesAny new or additional funding reflected in your prospective financial statements should be discussed here. Alternative funding scenarios can be presented if appropriate, and corresponding prospective financial statements are presented in subsequent sections of your plan.A. Current Funding Requirements1. Amount2. Timing3. Typea. Equityb. Debtc. Mezzanine4. TermsB. Funding Requirements over the Next Five Years1. Amount2. Timing3. Typea. Equityb. Debtc. Mezzanine4. TermsC. Use of Funds1. Capital expenditures2. Working capital3. Debt retirement4. AcquisitionsD. Long-Range Financial Strategies (liquidating investors’ positions)1. Going public2. Leveraged buyout3. Acquisition by another company4. Debt service levels and timing5. Liquidation of the ventureNote—Ernst & Young’s Guide to Financing for Growth contains a detailed discussion of various alternatives for raising capital and may provide you with some of the ideas and information you may need to write this portion of your business plan. The Guide, written by E&Y partners and published by John Wiley & Sons, can be purchased at many bookstores.
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