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PAGEITABLEOFCONTENTSHURDLE:THEBOOKONBUSINESSPLANNINGMILLENNIUMEDITION(REVISED)Howtodevelopandimplementasuccessfulbusinessplan.By:TimBerryPAGEIIHURDLE:THEBOOKONBUSINESSPLANNINGPaloAltoSoftware,Inc.,MillenniumEdition(Revised),October,2000Thiseditioncontainsnewinformation,expandedtreatmentoftopics,andimprovedorcorrectedtableexamplesinseveralchapters.Publisher:PaloAltoSoftware,Inc.144E.14thAve.Eugene,OR97401USAFax:1(541)683-6250Email:[e-mail]:©2000TimothyJ.BerryAllrightsreservedunderInternationalandPan-AmericanCopyrightConventions.Allrightsreserved.Reproductionofthisworkinwholeorinpartwithoutwrittenpermissionofthepublisherisprohibited.PublishedintheUnitedStatesbyPaloAltoSoftware,Inc.,Eugene,OR.LibraryofCongressCatalogNumber:00-109560ISBN0-9664891-4-4CoverdesignbyPaulBerry.BooklayoutbyTeriEpperly.Editor,SteveLange.PAGEIIITABLEOFCONTENTSAbouttheAuthorTimBerry’slatestbookisOnTarget:TheBookonMarketingPlans,co-authoredwithDougWilson,publishedinOctober,2000.HisCPA’sGuidetoBusinessPlanningwaspublishedin1998byHarcourtBraceProfessionalPublishing.Hisotherbooksonbusinessplanningwithspreadsheetswerepublishedinthe1980sbyDow-Jones-Irwin,Microtext/McGraw-Hill,andHaydenBooks.HisbusinesssoftwarehasbeenpublishedbyPaloAltoSoftwareandM&TPublishing.Hehasbeenaprofessionalbusinessplannersince1974,asanemployeeofBusinessInternationalandvicepresidentofCreativeStrategies,asaconsultanttoAppleComputer,asamemberoftheboardofdirectorsofBorlandInternational,andaspresidentandfounderofPaloAltoSoftware.Hehasgivenseminarsonbusinessplanningin10countriesonthreecontinents.BerryholdsaStanfordMBAdegree,anMAwithhonorsfromtheUniversityofOregon,andaBAmagnacumlaudefromtheUniversityofNotreDame.AcknowledgementsIwanttothankPaulBerryfornotjustcoverdesign,butforinspirationaswell.Iwasrecentlyintroducedtothephrase“EntrepreneurinHeat.”Ifyouhavetoaskwhatthatmeans,thenyou’veneverbeeninvolvedwithsomebodystartingabusiness.Theshortcutissimply“EIH.”PaulhasbeenEIHalotlately.TeriEpperlyhasdoneawonderfuljobwiththisbook,designingthelayout,managingthegraphics,andpatientlywaitingonmethroughtheupsanddownsofmydevelopingsoftware,writingthisandoneotherbook,andmanagingacompanyallatthesametime.ToVieRadek,DougWilson,Cristin,Megan,andmostofallVange,thanksforputtingupwithmewhilethiswascomingtogether.SampleBusinessPlansThisbookincludestwocompletesamplebusinessplans.Onesampleisacomputerstorethatisactuallyacompositeofseveralcomputerresellerbusinessestheauthorconsultedwithduringtheearly1990s.Theotherwasaconsultingcompanythatwasacceptedforfinancingbyamajorventurecapitalfirm,althoughitwasneveractuallyformed.BothwereoriginallypublishedaspartofBusinessPlanPro™andBusinessPlanToolkit™,publishedbyPaloAltoSoftware,Inc.WorkbookAlsoincludedistheHurdleWorkbook.Theworkbookpagesprovideaplacetowriteideasonyourbusinesswhileyoureadandgatherinformation.ThetextoutlinewastakendirectlyfromBusinessPlanPro™andBusinessPlanToolkit™.Asyoureadthroughthisbook,werecommendyougotothetopicreferenceintheworkbook.PAGEIVHURDLE:THEBOOKONBUSINESSPLANNINGHurdlebookonline!Thelatestprintingofthisbookreorganizestheoriginalchaptersintosevensections.Thesechangesweredonetocreateasimilarlookandfeelwithournewonlineedition.Theonlineeditioniscontinuallyeditedtobringthemostup-to-datebusinessplanninginformationtoourcustomers.Pleasevisitourbusinessresourceswebsiteat::Fundamentals......................................................1Asyoustarttheplanningprocess,beginwithageneralviewofthewholeproject.Reviewyourgoalsandconsideryouroptions.Chapter1:It’sAboutResults......................................................................3WhatMakesaGoodPlan?...................................................................................4UseofBusinessPlans..........................................................................................5NoTimetoPlan?ACommonMisconception........................................................5KeystoBetterBusinessPlans..............................................................................6ABusinessPlanFable..........................................................................................6Summary...............................................................................................................7Chapter2:PickYourPlan...........................................................................9WhatisaBusinessPlan?.....................................................................................9WhatisaStart-upPlan?.....................................................................................10IsThereaStandardBusinessPlan?...................................................................10WhatisMostImportantinaPlan?......................................................................10CanyouSuggestaStandardOutline?................................................................10StandardTablesandCharts...........................................................