Sample Business Plan Outline
I. Cover Letter
A. Dollar amount requested
B. Terms and timing
C. Type and price of securities
II. Summary
A. Business Description
1. Name
2. Location and plant description
3. Product
4. Market and competition
5. Management expertise
B. Business Goals
C. Summary of financial needs and application
of funds
D. Earnings projections and potential return
to investors
E. "Exit" Strategy
You need to describe to a potential
investor exactly how he will be repaid his
investment. Repayment may come from operations
refinancing or selling stock to others.
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.
III. Market Analysis
A. Description of total market
B. Industry trends
C. Target market
D. Competition
The market analysis should highlight
the opportunities for your company to achieve
its goals. Some of the following questions
should be asked: To whom are you trying to sell?
What are the trends in your target market? Who
are your customers and what are their
product/service preferences and reasons for
purchasing?
IV. Products or Services
A. Description of product line
B. Proprietary position: patents, copyrights,
and legal and technical considerations
C. Comparison to competitor's products
D. Opportunities or plans for expanding or
redesigning product or service lines.
E. Project changes in sales mix, cost, and
profit.
This section should fully describe each
product or service, including any brand names
and unique features. Analyze competitive
advantages and disadvantages. Your company's
customers may be the final users or may resell
to someone else. In the latter case, you should
know the identity of the ultimate consumer as
well as your immediate customer.
V. Manufacturing Process (if applicable)
A. Materials
B. Sources of supply
C. Production methods
VI. Market Strategy
A. Overall strategy
B. Pricing policy
C. Sales terms
D. Method. of selling, distributing and
servicing products
What customer groups will your business
target? To generate sales, what product or
service attributes will your company emphasize?
How will the company advertise and otherwise
promote its products or services?
VII. Potential Risks and Pitfalls
A. Critical risks your business faces
B. Problems that may hinder plan execution
C. How to avoid or offset problems
Things hardly ever proceed exactly
according to plan. Develop contingency plans to
meet crises and likely problems.
VIII. Management Plan
A. Form of business organization
B. Board of directors composition
C. Officers: organization chart and
responsibilities
D. Resumes of key personnel
E. Staffing plan/number of employees
F. Facilities plan/planned capital
improvements
G. Operating plan/schedule of upcoming work
for next one to two years
A business plan should list a company's
key managers and owners (along with their
education, skills, and experience; duties and
responsibilities), its board of directors (with
their affiliations and experience) and any
outside consultants.
IX. Financial Data
A. Financial history (last five years)
B. Five-year financial projections (first year
by quarters; remaining years annually)
1. Profit and loss statements
2. Balance sheets
3. Cash flow chart
4. Capital expenditure estimates
C. Explanation of assumptions underlying the
projections
D. Key business ratios
E. Explanation of use and effect of new funds
F. Potential return to investors compared to
competitors and the industry in general
These reflect, in dollar terms, a
business's past and its expected future. The
financial projections should be a reflection of
your business plan quantified. Financial
statements and projections must be consistent
with descriptions elsewhere in the business plan
of the industry, your marketing assumptions and
strategy, the execution process, and the
external funds needed.
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Elements of a Business Plan |
