What’s In a Business Plan?

Remember the post the other day on whether or not you need a business plan? Even if you’re not looking for a business loan, still read through because you can apply some of the information below that will help you when it comes to:

• Creating a regular business review and course correction, or;
• Setting a value on a business for sale or legal purposes

A business plan should prove that your business will generate enough revenue to cover your expenses and make a satisfactory return for bankers or investors.

1. Executive Summary–features the highlights of your plan and sells your idea in two pages or less.
2. Company Summary–a factual description of your company, ownership, and history.
3. Products (or Services or both)–describes your products and/or services and how they stand out from competitive products and services.
4. Market Analysis-provides a summary of your typical customers, competitive landscape, market size, and expected market growth.
5. Strategy and Implementation-describes how you will sell your product, how you will put your plan into action, and establishes milestones.
6. Management Summary-provides background on the management team, their experiences, and key accomplishments.
7. Financial Plan-contains key financials including sales, cash flow, and profits.

What makes a successful business plan?

• A well thought out idea
• Clear and concise writing
• A clear and logical structure
• Illustrates management’s ability to make the business a success
• Shows profitability

How do you write a business plan?

Sitting down looking at a blank computer screen as you prepare to start your business plan can be daunting. You may want to look at some alternatives that will make the process a bit easier.

Use Business Planning Software

A good business planning software package will provide you with an outline for a well-developed, objective-based and professional business plan. Software packages will remove the problem of starting from scratch by structuring your plan for you.

IMPORTANT: The software should ask you the right questions that will pull out the most important underlying concepts within your business idea that you might not normally think of yourself.  It’s like having a wizard walk you through, step by step.

Plan As You Go

There are lots of good books on the market to help you understand what needs to go into a good business plan.  Suggestion:  Read Tim Berry’s newest book, “The Plan-As-You-Go Business Plan“.

All the best,

P.S. Bplans.com has 100+ free sample plans to help guide you through your “writers block”. The sample plans available are in all types of categories from construction to retail, consulting to online businesses.