Writing a business
plan, a document that clearly describes your vision, forces
you to examine all aspects of your business including management,
marketing, human resources, legal issues, and finances. An
outline of what should be included in a business plan is
provided below. As you begin the planning process your business
plan will provide answers to the following questions:
1. Who are the owners and management team? Personal
resumes outlining education and experience will provide
critical background information for creditors.
2. What is the business going to provide? Describe
your business vision; the products and services you will
offer; who your target market is; your location,
how much money the owners are going to invest; and how much additional money
you will need from an external funding source (if any).
3. What are your goals? What are your short term goals
(6-12 months), interim goals (years 2 and 3) and long-term
years (4-7)?
4. What is your strategy for achieving these goals?
How will you meet your financial obligations, compete
with others in the market, stay abreast
of industry trends,
build a management team, hire and train employees, etc.?
One important thing to keep in mind is that your business
plan does not get written, published, and then sit on
a shelf collecting dust. Business
planning
is an ongoing
process that requires business owners to set aside time on a regular
basis to evaluate results, strategize, and implement their updated
plans. Every
business will benefit from writing and updating their goals, plans,
and strategies.
A Sample Business Plan Outline
There is no “best format” for a business plan. There are some basic
elements that every business plan should include; the following is not intended
to be comprehensive however it is a good list to get you started:
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• Title Page: include the name of the business, all
contact and ownership information (Names, address, telephone,
email, and web site). You may also want to include your company
slogan, vision or mission statement, or a brief business description.
• Table of Contents: include all sections with page
numbers; and exhibits or appendices with clear descriptions,
for example a diagram of a store layout may be exhibit number
1 on page 17.
• Mission Statement: A mission statement usually does
not change for five or more years so it is important that your
mission statement describe your company in the marketplace
and is general enough to allow potential growth in products
and/or services.
• Executive Summary: one of the most important sections
of your plan. This provides an overview of your plan to allow
the reader to quickly understand your business concept and
plan for success. In addition to providing a brief description
of the company history, products and services; it should also
clearly state the purpose of the plan, your company goals,
who your target market is, a description of your management
team, and financial information.
• Industry Status: including any regulatory issues,
projected opportunities, industry history and outlook, external
factors influencing industry such as technology.
• Target Market: who are your potential customers?
Where do they live? When and why will they buy from you?
• Marketing Plan: including sales goals, product descriptions,
pricing (which requires examining the competition and customer
expectations as well as all expenses). Also include location,
promotional activities, packaging, guarantees, warranties and
other customer service policies, sales training plans, and
strategies for growth.
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• Production and Operations Plan: this includes facilities,
equipment, production process, costs, suppliers and credit
terms, delivery/shipping plans, and time lines for research
and development.
• Insurance: list of the risk factors such as product
liability, personal/business liability, vehicles, fire, theft,
workers’ compensation, unemployment, key man, and business
interruption.
• Management and Human resources: roles and responsibilities
of key managers, personnel (number of full-time & part-time
employees by job description), compensation, benefits, organization
chart, policies, and contracted personnel or professional services
retained outside of the company such as attorney, accountant,
insurance representative, etc.
• Financial Plan: this section should include everything
from start-up costs to monthly expenses. It should include
sources and uses of funds, break-even analysis, balance sheet,
income statement, and statement of cash flow projected for
three years along with assumptions used in preparing these
projections.
• Attachments: resumes, advertisements, contracts,
leases, patents, copyrights, marketing research, facility layout
diagrams, etc.
© 2005, Carlene Cassidy
Carlene Cassidy, Professor
School of Business, Computing & Technical Studies; Director, Entrepreneurial
Studies Institute, Anne Arundel Community College, cmcassidy@aacc.edu
410-777-2161
Sources:
Small Business Management: An Entrepreneur’s Guidebook, 4th edition,
by Leon C. Megginson,
Jane Byrd, and William L. Megginson.
Small Business Administration website: www.sba.gov
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