The following outline of a typical business plan can serve as a guide. You can adapt it to your specific business. Breaking down the plan into several components helps make drafting it a more manageable task.
- Introduction
- Give a detailed description of the business and its goals.
- Discuss the ownership of the business and the legal structure.
- List the skills and experience you bring to the business.
- Discuss the advantages you and your business have over your competitors.
2. Marketing
- Discuss the product/service offered.
- Identify the customer demand for your product or service.
- Identify your market, its size and locations.
- Explain how your product or service will be advertised and marketed.
- Explain the pricing strategy.
3. Financial Management
- Explain your source and the amount of initial capital.
- Develop a monthly operating budget for the first year.
- Develop an expected return on investment and monthly cashflow for the first year.
- Provide projected income statements and balance sheet for the two year period.
- Discuss your break-even point.
- Explain your personal balance sheet and method of compensation.
- Discuss who will maintain your accounting records and how they will be kept.
- Provide “What if” statements that address alternative approaches to any problem that may develop.
4. Operations
- Explain how the business will be managed on a day-to-day basis.
- Discuss hiring and personnel procedures.
- Discuss insurance, lease or rent agreements and issues pertinent to your business.
- Account for the equipment necessary to produce your products or services.
- Account for production and delivery of products and services to consumers.
Summarize your business goals and objectives and express your commitment to the success of your business. Remember the business plan is a flexible document that should change as your business grows.
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