Ingredients of a Business Plan

A business plan can be formal (if you’re presenting it to investors or a bank) or informal (if it’s just for your reference), but whatever style you write it in, there are certain components you should include.

Executive Summary: This is the Cliff’s Notes of the business plan. It gives an overview of the entire plan, and if you’re asking for investment or financing, it lays out exactly what you’re asking for. Keep it to no more than a half page, and be sure to include:

• Business Concept
• Financial Details
• Financial Requirements
• Current Business Stats
• Major achievements

Business Description: The next section is an overview of both the business and the industry, as well as the outlook for growth and opportunities you may be able to take advantage of.

Market Strategies: Here you assess your target market through analysis and discuss pricing, distribution and promotional strategies.

Competitive Analysis: List your top three to five competitors and assess their strengths and weaknesses.

Developmental Plan: This section outlines your product’s design and how you plan to develop it.

Operations and Management: Outline the operations organization and define the roles of each of the key players in your business. Discuss opportunities to grow your staff.

Finances: Here you include all income statements, cash flow and balance sheet so investors can see what your assets and liabilities are.