Outline of a business plan

Your Business Plan tells the world what kind of business you're in. For ease of handling, divide your plan into two sections, and provide the needed documentation in appendixes at the end. In Section I use words to briefly introduce your strategies for marketing and management. Try to "hook" your reader with the excitement of creating a business, assessing the competition, designing a marketing plan, targeting customers, finding the right location, and building a team- all those human things that most people can relate to, even if they're not in business.

In Section II present numbers, income statement, cash flow projection, and projected balance sheet. This section is aimed primarily at bankers, credit managers, venture capitalists, vendors, SBICs, commercial credit lenders. At the same time, you've got to make it accessible to the casual reader who searches for the bottom line.

Support the two sections with appendixes. These are documents that support what you've said in previous sections.

 

Section I

  1. Title
  2. Cover Letter--addressed to specific reader
  3. Executive Summary--written last. It is similar to the preface of a book and it written to acquaint the reader with the material that follows. A summary of the Business Plan makes the reader want to read further.
  4. Description of the Business--Explain your product or service fully. What makes it unique? Use numbers when you can. This section should excite your reader about your business.
  5. Description of Market and the Target Customer--Describe your target customer using all your research(primary and secondary).
  6. Description of your Competition---Who are your direct(and indirect) competitors? What are their strengths and weaknesses? How are you going to compete against them?
  7. Description of your marketing strategy--What marketing techniques will you use to get the best and most cost-effective response? Address all areas of the marketing mix: Price, Promotion, Distribution.
  8. Description of your Location--Use pictures, diagrams, charts and illustrations to make your location come alive for your readers. You want them to visit your location, so make it as enticing as possible.
  9. Description of your Management Team--Highlight the positive qualities of your managers. Describe experience, accomplishments, education, training, flexibility, imagination, tenacity. Touch on experience that relates to this type of business. Readers will look for balance in your team(Resumes should be included in the appendix.)
  10. Description of Personnel--Describe the type of people you will want as employees and how they will fit into your plan. What skills will they need? How much will you have to pay them? (Job descriptions should be included in the appendix.)

 

Section II

  1. Project your Income Statement--Use this to figure net profit

  2. Project your Cash Flow--This will help you determine if you have enough money to run your business. It will also help you to determine how much money you will need to raise.
  3. Project your balance sheet--This is a prediction of what your business will be worth at the end of a certain period of time.

Appendixes

This is where you put resumes, job descriptions, maps, diagrams, photographs, tables, reprints from industry journals, letters from customers, letters from vendors, credit reports, personal financial statements, bids from contractors, and other documentation that demonstrates the viability of your plan. Note that in most cases, material in the appendixes comes from existing sources.