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PAGE ITABLE OF CONTENTSHURDLE:THE BOOKONBUSINESS PLANNINGMILLENNIUM EDITION(REVISED)How to develop and implementa successful business plan.By:Tim BerryPAGE IIHURDLE:THE BOOK ON BUSINESS PLANNINGPalo Alto Software,Inc.,Millennium Edition(Revised),October,2000This edition contains new information,expanded treatment of topics,and improved orcorrected table examples in several chapters.Publisher:Palo Alto Software,Inc.144 E.14th Ave.Eugene,OR 97401USAFax:1(541)683-6250Email:Website:Copyright 2000 Timothy J.BerryAll rights reserved under International and Pan-American Copyright Conventions.Allrights reserved.Reproduction of this work in whole or in part without written permission of thepublisher is prohibited.Published in the United States by Palo Alto Software,Inc.,Eugene,OR.Library of Congress Catalog Number:00-109560ISBN 0-9664891-4-4Cover design by Paul Berry.Book layout by Teri Epperly.Editor,Steve Lange.PAGE IIITABLE OF CONTENTSAbout the AuthorTim Berrys latest book is On Target:The Book on Marketing Plans,co-authoredwith Doug Wilson,published in October,2000.His CPAs Guide to Business Planningwas published in 1998 by Harcourt BraceProfessional Publishing.His other bookson business planning with spreadsheetswere published in the 1980s by Dow-Jones-Irwin,Microtext/McGraw-Hill,andHayden Books.His business software hasbeen published by Palo Alto Software andM&T Publishing.He has been aprofessional business planner since 1974,as an employee of Business Internationaland vice president of Creative Strategies,as a consultant to Apple Computer,as amember of the board of directors ofBorland International,and as presidentand founder of Palo Alto Software.He hasgiven seminars on business planning in10 countries on three continents.Berry holds a Stanford MBA degree,an MA with honors from the University ofOregon,and a BA magna cum laude fromthe University of Notre Dame.AcknowledgementsI want to thank Paul Berry for not justcover design,but for inspiration as well.Iwas recently introduced to the phrase“Entrepreneur in Heat.”If you have to askwhat that means,then youve never beeninvolved with somebody starting abusiness.The shortcut is simply“EIH.”Paul has been EIH a lot lately.Teri Epperly has done a wonderful jobwith this book,designing the layout,managing the graphics,and patientlywaiting on me through the ups and downsof my developing software,writing thisand one other book,and managing acompany all at the same time.To Vie Radek,Doug Wilson,Cristin,Megan,and most of all Vange,thanks forputting up with me while this was comingtogether.Sample Business PlansThis book includes two completesample business plans.One sample is acomputer store that is actually a compositeof several computer reseller businessesthe author consulted with during the early1990s.The other was a consultingcompany that was accepted for financingby a major venture capital firm,althoughit was never actually formed.Both wereoriginally published as part of BusinessPlan Pro and Business Plan Toolkit,published by Palo Alto Software,Inc.WorkbookAlso included is the Hurdle Workbook.The workbook pages provide a place towrite ideas on your business while youread and gather information.The textoutline was taken directly from BusinessPlan Pro and Business Plan Toolkit.Asyou read through this book,werecommend you go to the topic referencein the workbook.PAGE IVHURDLE:THE BOOK ON BUSINESS PLANNINGHurdle book online!The latest printing of this book reorganizes the original chapters into seven sections.These changes were done to create a similar look and feel with our new online edition.The online edition is continually edited to bring the most up-to-date businessplanning information to our customers.Please visit our business resources website at:http:/ VTABLE OF CONTENTSTable of ContentsPart 1:Fundamentals.1As you start the planning process,begin with a general view of the whole project.Reviewyour goals and consider your options.Chapter 1:Its About Results.3What Makes a Good Plan?.4Use of Business Plans.5No Time to Plan?A Common Misconception.5Keys to Better Business Plans.6A Business Plan Fable.6Summary.7Chapter 2:Pick Your Plan.9What is a Business Plan?.9What is a Start-up Plan?.10Is There a Standard Business Plan?.10What is Most Important in a Plan?.10Can you Suggest a Standard Outline?.10Standard Tables and Charts.11Form Follows Function.14Investor Summaries and Loan Applications.14Timeframes:Is Three Years Enough?.14Summary.14Chapter 3:The Mini-Plan.15Objectives.15Mission Statement.16Keys to Success.17Break-even Analysis.17Market Analysis.19Pause for Reflection.20Summary.20Chapter 4:Starting a Business.21Customers First.21Myths on Starting a Business.22A Simpler Plan for Start-ups.22Simplified Business Plan Outline.24Realistic Start-up Costs.26Understand the Risks.27Friends and Family Funding.30PAGE VIHURDLE:THE BOOK ON BUSINESS PLANNINGLicenses,Permits,and Legal Entities.30The Business Entity.31Business Names,Trademarks,Copyrights,etc.34Part 2:Tell Your Stor