Business Plan Outline

There are a certain amount of predictable contents in a standard business plan. However, depending on the type of business that you’re starting, that content might vary from one plan to the next.

The common elements of a standard business plan include:

• Title Page
• Table of Contents
• Executive Summary
• Company Description
• Product/Service
• Market and Competition
• Marketing and Selling Strategy
• Operating Plan
• Management/Organization
• Financing
• Supporting Documents

Executive Summary: This is the cornerstone of a good plan. It’s just a page or two of highlights, but people read this summary to decide whether or not they should read the rest. So it’s important to be concise, interesting and persuasive. Invest a good amount of time in honing your executive summary. People experienced in writing business plans will tell you: Write it last.

Company Description: Here’s an opportunity to spotlight your dream, strategy, and goals. What kind of business is it (legal, automotive, restaurant, etc.)? What’s the history – how did the idea occur to you; how did it develop? What will it look like in five years?

Product or Service: Describe what you're selling. Focus on the value it will have for customer. What makes you and your business different? Why is it innovative?

Market Analysis and Sales Strategy: You need to know your market, customers’ needs, where they are and how to reach them. What are your sales projections? What will your expenses be? Knowing this information will enable you to produce a balance sheet, an income statement and a cash-flow analysis – these will be important to potential investors. As for the sales strategy and implementation, give the reader some detail. Delineate management responsibilities. Show exactly how you plan to track results.

Web Plan: This is part of your marketing and sales strategy. However, in a modern business plan, it’s important enough to make it a separate entity. E-commerce is becoming increasingly important – in some cases it’s forcing businesses to formulate new business models. Downloading music has changed the record industry. Email has forced the U.S. Post Office to get creative. Digital cameras made film and darkroom equipment obsolete. So, describe your website and how it will support you overall marketing and sales strategy. Include sketches or finished illustrations of the website. Include a detailed siteplan. Break out the costs for developing and maintaining the site.

Management: For the external plan only, include a complete biography for each member of the management team. This is where you paint a picture of yourself and your managers as people who have a vision, a strategy and a passion to win – this is where you tell potential investors that you have the talent and experience to do what you say you can do.

Financial Analysis: Cash flow is most important numerical analysis in a plan business, so make it good. Wherever possible, use bar charts and pie charts – the old adage is true: A picture’s worth a thousand words.

Writing a business plan may seem overwhelming. However, there are ways to make the process more manageable. First, there are many computer software packages for producing a standard business plan. Numerous books on entrepreneurship have detailed instructions, and many universities sponsor programs for new businesses.

There are dozens of well-written, helpful brochures and books available at libraries and bookstores. Most large accounting firms have manuals available. If more assistance is required, contact your local Small Business Development Center. (http://tinyurl.com/2zxrhr) Examine the many business-plan templates that are available for free on the Web. (There are templates available for download, free, at the Microsoft Office Template Gallery: office.microsoft.com/en-us/templates.)

The Yellow Pages is a good source in which to find legal and financial consultants. Once you’ve found their names, do some research and make sure they can do what you want them to do.

What Investors Look For

Clearly, investors want to see how they’re going to make money off of your venture. So they’ll want details that tell a convincing story about your business – what you’re selling, where you’ll be located, who’s in charge of what, what the structure of the company will be… put yourself in their shoes; what would you want to know before giving money to someone who might not care anything about you, other than you have money to invest?

Hammer home your history – your experience and the experience of your management team. That can’t be emphasized enough.

Illustrate very clearly how your product or service is one-of-a-kind and there are a substantial number of people who need it and will pay for it. Do your homework.

Tell potential investors exactly who those numerous people are – define your market’s demographics.

Where’s the communications pipeline that will carry your message to your market? Make sure you can tell potential investors how you intend to disseminate information to your buyers.

Know thyself but know your competitors better. And be able to convince investors why your one-of-a-kind product or service has more value than your competitors’ offerings.

Have a timeline. Investors not only want to know if they’ll recoup their money but when.