Title Page
Enter your business information including the legal name, address, etc. If you already have a
business logo you can add it at the top or bottom of the title page.
Business Plan
For
"Business Name"
"Date"
"Business Address"
"Phone"
"email"
"website"
If addressing to a company or individual include:
Presented to:
"Name"
"Company or Financial Institution"
1. Table of Contents:
Table of Contents
Table of Contents
1. Executive Summary............................. Page#
2. Business/Industry Overview................. Page#
3. Market Analysis and the Competition... Page#
4. Sales and Marketing Plan......................... Page#
5. Ownership and Management Plan........ Page#
6. Operating Plan..................................... Page#
7. Financial Plan...................................... Page#
8. Appendices and Exhibits...................... Page#
Section 1: Executive Summary
The executive summary goes near the beginning of the plan but is written last. It provides a
short, concise, and optimistic overview of your business that captures the reader's attention and
creates a need to learn more. The executive summary should be no more than 2 pages long,
with brief summaries of other sections of the plan.
Section 1: Executive Summary
· Describe your mission—what is the need for your new business?
· Introduce your company and the management and ownership.
· Describe your main product and service offerings.
· Briefly describe the customer base you will be targeting and how your business will
serve those customers.
· Summarize the competition and how you will get market share (i.e., what is your
competitive advantage?)
· Briefly outline your financial projections for the first few years of operation.
· Describe your start-up financing requirements (if applicable).
Section 2: Business/Industry Overview
An overview of the industry and how your business will compete in the sector.
Section 2: Business/Industry Overview
· Describe the overall nature of the industry, including sales and other statistics.
Include trends and demographics, and economic, cultural, and governmental influences.
· Describe your business and how it fits into the industry.
· Describe the existing competition.
· Describe what area(s) of the market you will target and what unique, improved or
lower cost services you will offer.
Section 3: Market Analysis and the Competition
In this section, you need to demonstrate that you have thoroughly analyzed the target market and
that there is enough demand for your product or service to make your business viable. The
competitive analysis includes an assessment of your competition and how your business will
compete in the sector. The Target Market description and Competitive Analysis portions can be
two separate sections in the plan or combined as shown:
Section 3: Market Analysis and the Competition
· Define the target market(s) for your product or service in your geographic locale.
· Describe the need for your products or services.
· Estimate the overall size of the market and the units of your product or service the
target market might buy, potential repeat purchase volume, and how the market might be
affected by economic or demographic changes.
· Estimate the volume and value of your sales in comparison with any existing
competitors. It helps to summarize the results in table form as in the following example
which demonstrates that there is a gap in the high-quality sector of the market that your
business intends to target.
Business Competitor A Competitor B Your Business
Est. Annual Revenue $1,000,000 $600,000 $500,000
Employees 20 10 5
Price Average High High
Quality Low Average High
· Describe any helpful barriers to entry that may protect your business from competition,
such as access to capital, technology, regulations, employee skill sets, location, etc.
Section 4: Sales and Marketing Plan
A description of how you intend to entice customers to buy your product(s) or service(s),
including advertising/promotion, pricing strategy, sales and distribution, and post-sales support if
applicable.
Section 4: Sales and Marketing Plan
Product or Service Offerings
· Describe your product or service, how it benefits the customer, and what sets it apart
from competitor offerings (i.e., what is your Unique Selling Proposition?).
Pricing Strategy
· Describe how you intend to price your product or service. Pricing has to be competitive
to attract customers but high enough to cover costs and generate a profit. Pricing can be
based on markup from cost, value to the buyer, or in comparison with similar
products/services in the marketplace. Breakeven analysis can help determine sales and
pricing for profitability.
Sales and Distribution
· Describe how you will distribute your products to the customer (if applicable). Will you
be selling wholesale or retail? What type of packaging will be required? How will the
product(s) be shipped? What methods will be used for payment?
Advertising and Promotion
· List the different media you will use to get your message to customers (e.g. business
website, email, social media, traditional media like newspapers, etc.). Will you use sales
promotional methods such as free samples, product demonstrations, etc.?
· What marketing materials you'll use such as business cards, flyers, brochures, etc.
What about product launches and tradeshows? Include an approximate budget
for advertising and promotion.
Section 5: Ownership and Management Plan
This section describes the legal structure, ownership, and (if applicable) the management, and
staffing requirements of your business.
Section 5: Ownership and Management Plan
Ownership Structure
· Describe the legal structure of your company (e.g. corporation, partnership, Limited
Liability Company, or sole proprietorship). List ownership percentages if applicable. If
the business is a sole proprietorship this is the only section required.
Management Team
· Describe managers and roles, key employee positions, and how each will be
compensated.
External Resources and Services
· List any external professional resources required, such as accountants, lawyers,
consultants, etc.
Human Resources
· List the type and number of employees or contractors you will need and an estimate of
the salary and benefit costs of each.
Advisory Board (if required)
· Include an advisory board as a supplemental management resource (if applicable).
Section 6: Operating Plan
The operating plan outlines the physical requirements of your business, such as office,
warehouse, retail space, equipment, inventory and supplies, labor, etc. For a one-person, home-
based consulting business the operating plan will be short and simple, but for a business such as
a restaurant or a manufacturer that requires custom facilities, supply chains, specialized
equipment, and multiple employees, the operating plan needs to be very detailed. The Operating
Plan Section of the Business Plan will provide you with additional information about your
operating plan.
Section 6: Operating Plan
Development (if applicable)
· Explain what you have done to date in terms of identifying possible locations, sources
of equipment, supply chains, etc. Describe your production workflow.
Production:
For manufacturing, explain how long it takes to produce a unit and when you'll be able
to start producing your product or service. Include factors that may affect the time frame
of production and how you'll deal with potential problems such as rush orders.
Facilities
· Describe the physical location of the business including location, land, and building
requirements. Include square footage estimates with room for expansion if expected.
Include the mortgage or leasing costs. Also include estimates of expected maintenance,
utilities, and related overhead costs. Include zoning approvals and other permissions
necessary to operate your business.
Staffing
· Outline expected staffing needs and the main duties of staff members, especially the key
employees. Describe how the employees will be sourced and the employment relationship
(i.e., contract, full-time, part-time, etc.). Detail any employee training needed and how it
will be provided.
Equipment
· Include a list of any specialized equipment needed. Include the cost and whether it will
be leased or purchased and the sources.
Supplies
· If your business is manufacturing, retail, food services, etc. include a description of the
materials needed and how you will reliably source them. Give descriptions of major
suppliers if needed. Describe how you will manage inventory.
Section 7: Financial Plan
The financial plan section is the most important section of the business plan, especially if you
need debt financing or want to attract investors. The financial plan has to demonstrate that
your business will grow and be profitable. To do this, you will need to create projected income
statements, cash flow statements, and balance sheets. For a new business, these are forecasts. A
good rule of thumb is to underestimate revenues and overestimate expenses.
Section 7: Financial Plan
Include your 3 financial statements. Each is described in Writing the Business Plan: The
Financial Plan, including templates.
Income Statements
· The Income Statement shows your projected Revenues, Expenses and Profit. Do this on
a monthly basis for at least the first year for a startup business.
Cash Flow Projections
· The Cash Flow projection shows your monthly anticipated cash revenues and
disbursements for expenses. It is important for demonstrating that you can manage
your cash flow and will be a good credit risk.
Balance Sheet
· The Balance Sheet is a snapshot summary of the assets, liabilities, and equity of your
business at a particular point in time. For a startup, this would be on the day the
business opens. Note that a new business will have no accounts receivable entries on the
balance sheet. Note also that the Balance Sheet is much simpler for unincorporated
businesses without employees. Income tax, pensions, medical, etc. are only applicable
to incorporated businesses, as are Earnings/Retained Earnings.
Breakeven Analysis
· Including a breakeven analysis will demonstrate to financiers or investors what level of
sales you need to achieve to make a profit. You might need to figure out How to Do a
Breakeven Analysis before tackling this area.
Section 8: Appendices and Exhibits
The appendices and exhibits section contains any detailed information needed to support other
sections of the plan.
Section 8: Appendices and Exhibits
Possible Appendix/Exhibit Items
· Credit histories for the business owners.
· Detailed market research and analysis of competitors.
· Resumés of the owners and key employees.
· Information about your industry.
· Information about your products/services.
· Site/building/office plans.
· Copies of mortgage documents, equipment leases, etc. (or quotes on these).
· Marketing brochures and other materials.
· References from business colleagues.
· Links to your business website.
· Any other supporting material that may impress potential lenders or investors if you
are looking for financing.
