Writing a Business Plan

What goes in a business plan? The body can be divided into four distinct sections:

1.     Description of the business

2.     Marketing

3.     Finances

4.     Management

Agenda should include an executive summary, supporting documents, and financial projections. Although there is no single formula for developing a business plan, some elements are common to all business plans. They are summarized in the following outline.

Elements of a Business Plan

1.     Cover sheet

2.     Statement of purpose

3.     Table of contents  

The Business

·         Description of business

·         Marketing

·         Competition

·         Operating procedures

·         Personnel

·         Business insurance

 

Financial Data

·         Loan applications

·         Capital equipment and supply list

·         Balance sheet

·         Breakeven analysis

·         Pro-forma income projections (profit & loss statements)

·         Three-year summary

·         Detail by month, first year

·         Detail by quarters, second and third years

·         Assumptions upon which projections were based

·         Pro-forma cash flow

Supporting Documents

·         Tax returns of principals for last three years

·         Personal financial statement (all banks have these forms)

·         For franchised businesses, a copy of franchise contract and all supporting documents provided by the franchisor

·         Copy of proposed lease or purchase agreement for building space

·         Copy of licenses and other legal documents

·         Copy of resumes of all principals

·         Copies of letters of intent from suppliers, etc.

 

Additional Resource

SBA – Writing a Business Plan