Here is a quick review of the major elements that you should consider including in your business plan.
Before you take on this task and commit both your time and resources to doing a business plan, be sure to do some basic research in order to answer the following questions:
- Is this business or business expansion viable? What are the inherent key success factors?
- What and how is the competition doing? How will your business stand out?
- Are there ways to minimize risks and costs and ensure full implementation of the plan?
- Do you have all the information you need before you commit or are you making key assumptions on weak or unreliable information?
- Lastly, do you have enough financing to succeed even if things follow the "worst case" scenario in your business plan.
Sections of a comprehensive business plan will include:
TABLE OF CONTENTS
EXECUTIVE SUMMARY:
The executive summary is a stand-alone document that allows an investor to review the most important parts of the plan quickly. It should include the following elements and be incorporated into your plan as the first section (right after the Table of Contents).
Business Description:
The product or service, major features and benefits, location and target market.
Mission Statement:
The core values of which the company is dedicated to impart to its customers.
Industry Trends:
Growth trends and significant positive indicators.
Target Market:
A description of the general consumer base and specific segments.
Competitive Advantages and Opportunities:
What aspects of the business, product,or service differentiate it from competitors?
Management Description:
History, experience, and training of management.
Business Type:
Sole proprietorship, partnership, or corporation.
Milestones:
What tasks have been completed to date?
Financial Outlook:
Profit and loss outlook for the future three to five years.
Sources and Uses:
Where will cash be coming from and where will it go?
Long Term Vision:
What will the firm look like in five years?
Risks and Risk Containment:
What are the major risks and how will they be covered or reduced?
Return to Top
MARKETING:
The Marketing Section of your Business Plan should include the following:
Mission Statement:
The core values which the company is dedicated to impart to its
customers.
The Product or Service:
A list of products and services and descriptions of their features and benefits.
Industry Trends:
Growth trends and specific indicators or opportunities in the industry.
S.W.O.T Analysis:
The strengths, weaknesses, opportunities identified, and threats
faced.
Key Success Factors:
What are the core apsects and/or functions of the business that must be focused on and optimized to ensure viability and long term sustainability?
Market Research:
Primary and Secondary research in regard to the following:
Target Market (The Customer):
A description of the consumer demographics, psycho graphics, and socio graphics.Description of businesses serviced.
Market Segments:
Specific market niches or communities that will be targeted.
Competitive Analysis:
A list of relevant competitors and comprehensive comparison of products and/or services. Features and benefits,and barriers to entry.
Positioning:
How the business, product, and/or service is perceived by its "best" customer(s)?
Pricing:
What are the company's pricing policies?
Promotion:
A description of the methods and media utilized to attract target markets.
Sales & Distribution Strategy:
A detailed description of the fulfillment process.
A detailed and workable sales plan.
Return to Top
Start researching and acquiring this information using the BPP Smart-StartTM Industry, Market, and Competitive Research Primers. Click here to learn more.
MANAGEMENT & OPERATIONS
Management Vision:
How does the management see the firm evolving over the next three to five years?
Management Team:
A description of key management and their roles.
Professional Advisors:
A list of professional resources and how they will contribute.
Strategic Partners:
Strategic alliances that will be formed for the mutual benefit of both
organizations.
Table of Organization:
An organizational chart showing the hierarchy of management and
decision-making.
Support Staff:
Identify key personnel and their roles.
Contractors and Suppliers:
Identify, list, and describe the roles of key contractors and suppliers.
Legal Requirements:
What licenses, permits, certificates, etc. are required?
Insurance:
The purpose, risks covered, and limits of required insurance.
Operations & Production:
A description of the production processes, facilities, equipment,
specifications.
Processes and Specifications (optional):
A detailed description of processes including time lines and specifications.
Return to Top
FINANCES
Notes & Assumptions:
In regard to financial projections.
Pro Forma Income & Expense Statement:
Three to five year projections.
Projected Cash Flows:
Three to five year projections.
Pro Forma Balance Sheet & Ratios:
Reflect the financial stability of company in year one through years three and/or five.
Projected Financing Requirements:
How much financing and equity is required and in what proportions?
Start researching and acquiring this information using the BPP Smart-StartTM 5 Year Generic and Industry Specific Financial Benchmark Primers. Click here to learn more.
APPENDIX:
- Financial Projections
- Critical Path/Implementation Plan
- Research Reports. Articles. Competitive Ads.
- Product Photos. Brochure. Ads.
- Personal Financial Statement. Functional Resume.
Return to Top
