Business Plan Outline

I. The Introduction (Executive Summary)

Should include a brief business history/profile, a sketch of the principals (resumes can be included in the appendix) and the purpose of the plan.

II. Product

What does the business sell, produce or service or expect to sell, produce or service? And perhaps a bit of comment on why it is unique-if it is unique.

III. Competition

Who else is doing what you are doing, or planning to do? How are you similar and how are you different? A clear understanding of your rivals indicates to your reader that you have researched and analyzed your industry.

IV. Target Market Segment

Who is going to buy your product, where are they located and why will they buy from you? How will you attract them in your direction? The more clearly you can define your market segment the more precisely you can tailor your approach.

V. Amount of Financing Needed

Precisely state the amount of financing needed.

Help Tools:
Starting Cost Calculator
Cash Flow Calculator
Break Even Calculator

VI. Uses of Financing

How will the money be used? What equipment will be purchased? What level of salaries will be paid? What amount of inventory will be stocked? Be sure to include an amount for contingencies. Detail in this section is appreciated.

VII. Financial Projections

A pro-forma cash flow/profit and loss is necessary. A 12 month detailed statement is best with gross figures (i.e., sales, gross margin, gross profit, net profit) extended out for two or three years. Be sure to include supporting notes concerning sales estimates and expenses. The figures presented will have to be defended to the reader.

Help Tools:
Starting Cost Calculator
Cash Flow Calculator
Break Even Calculator

VIII. Personal Financial Statements

A statement of net worth (i.e., balance sheet) will more than likely be needed for each of the key players in the firm. Most investors will require a personal pledge from the business partners before committing their funds. The firm’s partners will need to obtain the proper documents from their personal accountant or financial advisor.

IX. Appendix

Should include any supporting documents, which are cited in the body of the plan. This can include resumes, samples of the described product, or legal documents validating collateral for the financing.

To re-emphasize, when compiling a Business Plan there is no substitute for accuracy, clarity and conciseness. Include all that is needed but only what is needed.