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Elements of a Business Plan 1. Business Description
States business name, address, and owner
identification.
Identifies goals and objectives. Clarifies why
you are or why you want to be in business.
2. Products and Services
Explains all products and services fully.
Describes what you are selling and why.
3. Sales and Marketing
Sales and marketing are the core of your
business rationale. This section addresses
several basic questions:
Who and how large is your market?
How will you be competitive?
What pricing and sales terms are you planning?
How will you market your products and services?
4. Operating Requirements
Identifies and describes the equipment,
facilities, and people necessary to generate your
products and services.
Explains how your products and services will be
produced and made available to the customer.
5. Financial Management
This, the most critical part of your plan,
establishes vital schedules that will guide the
financial health of your business.
If you are just Starting a Business, your plan
should include:
- Projected "start-up costs."
- Expected profit or return on investment (ROI)
for the first year.
- Projected income statement and balance sheet
for two years.
- Projected monthly cash flow statement for 12
months.
If you have a young or established business,
your plan should include:
- Income statement and balance sheet for the
last two years.
- Projected income statement and balance sheet
for the next two years.
- Projected monthly cash flow statement for 12
months.
- An explanation of all projections. (If you
feel that your finance or accounting knowledge
is not sufficient to prepare these statements,
get professional assistance.)
The bottom line: will, or does, your company
make a profit?
6. Concluding Narrative
Summarizes your business goals and objectives
and sends a message that you are committed to the
success of your business.
Your business plan should be complete, clear,
neat, and accurate. It will be an extension of you
and your business.
The length of a good plan will vary from a few
pages to well over a hundred pages. The plan
should provide a sound "blueprint" for your
business and entice any reader to want to know
more.
Whether a business plan is developed mainly for
the benefit of insiders or outside investors, the
summary should "sit up and sing!" Your company's
goals, strategy, and critical success factors
belong up front.
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Sample Business Plan Outline |
