Business Plan Elements

Business Plan Elements

There are four standard sections of the business plan:

1.       The Business

2.       The Marketing

3.       The Financials

4.       The Supporting Material

 

 

1.       The Business

This section discusses all pertinent information relevant to your business.  It might include subsections such as Operations, Legal Structure, Business Model, Management, Personnel, Strengths and Weaknesses, Core Competencies and Challenges, Product or Service.  It covers, soup to nuts, from product conception to follow-up after the sale – how does the business model work?

 

2.       The Marketing

This section details the industry you are in and your place in it.  This covers outside forces – economics, customers, competition, as well as more rudimentary items such as ad campaigns and a traditional marketing strategy.  The sections might include; Target Market, Customers, Competition, Distribtution, Advertising, Pricing, Industry and Market Trends, Strategy and Market Strategy.

 

3.       The Financials

Statements that might be included in this section include; Uses of Funds, Income Statements, Cash Flow Statement, Balance Sheet, Cash Flow Forecast, Profit and Loss Forecast, Income Projection, Sales Revenue Forecast, Income Forecast, Capital Spending Plan, Assumptions, Budget and Break-Even Analysis. 

It is important to benchmark similar companies in this section so you can show where your numbers are in line with the industry and where you have advantages.

 

4.       The Supporting Material

Typically, supporting materials include resumes, letters of reference, credit reports, legal documents, agreements and contracts.

 

In addition, you want to include an executive summary as well as mission and goals.

 

The Outline:

Cover Sheet

Table of Contents

Mission Statement

Executive Summary

The Business

                Strengths and Weaknesses

                Legal Structure

                Business Description

                Product or Service Description

                Intellectual Property Description

                Location

                Management and Personnel

                Records

                Insurance

                Security

                Litigation

                Risk Factors

The Marketing

                Markets

                Competition

                Distribution and Sales

                Marketing

                Industry and Market Trends

                Strategy

The Financials

                Uses of Funds

                Income Statement

                Cash Flow Statement

                Balance Sheet

                Income Projection

                Break-Even Analysis

The Supporting Documents