Business Plans - What Goes In?

Business plans need not be elaborate works of genius – they just need to be accurate and organized. Many authorities have different versions of what goes into a business plan. The plan is your guide to implementation. It should also be written so a third party can clearly identify its purpose and feasibility. The latter comment is generally required when seeking investors or partners. The major sections should address four distinct sections.

1. Business Introduction and Description
2. Product/Service Description and Marketing Strategy
3. Management and Operations
4. Financial Data including Budgets

Following is an outline of a typical plan and shows its major components. The trick is knowing what relevant data goes in these components. That is a topic for another discussion.

1. Introduction of the plan
2. Executive Summary including Mission Statement
3. Table of contents

I. The Business

A. Description of business and product/service
B. Marketing Strategy including Sales
C. Competitive Environment (research, analysis, and conclusions)
D. Operational and Administrative Functions
E. Staffing including Management
F. Financial data

*IMPORTANT - The marketing section is a plan in itself. Do not take this part lightly. You may have a great organization and product, but marketing shows how you will generate revenue. Industry and marketplace research must be collected and analyzed. The data must support conclusions to implement proper action and must compliment the remainder of the business plan.

II. Financials

A. Income Statement, Balance Sheet, and Budgets
B. Equipment and Supply requirements to operate (if any)
C. Loan or Investment requirements
D. Product Cost - Pricing - Breakeven analysis
E. Pro-forma P&L projections (the company in general and the marketing program)
F. Insurance
G. Special fees or licensing requirements

III. Supporting Documents

A. Disclaimers and Assumptions
B. Additional supporting analysis
C. Contracts, Letter of Intent and so forth
D. Legal issues and / or legal documentation if any
E. Licenses
F. Resume of owners