Business Plan Contents
From Entrepedia: The Entrepreneurship Wiki
In these difficult times, planning the finances of the business is more important than ever. Where planning is critical at an early stage, when loan or investment facilities may be required, ongoing planning is equally important. Key to any business success is having clearly planned vision and goals and knowing how they will be achieved. Budgeting and targets give the business something to aim for and should be used as an ongoing challenge by the owner of the business and its people’s performance.
Some key principles to any business plan are:
- The plan should be what you believe the business can achieve.
- The plan should be used to control the business
- Prepare medium and long term goals
- Use the key people in the business to prepare the plan, not just the owners
- Sensitise and challenge the figures, understand the downside as well as the upside. This helps to be more proactive and make crucial decisions early
- Compare actual figures as soon as soon as they are available
- Be prepared to modify your budget and share the changes and ongoing plan with your investors and bankers
- Use the target figures as incentives for your people to achieve goals and manage their performance.
** Above information provided by Bob Kelly**
Your business plan should generally include the following sections:
Contents |
Executive Summary
Your business plan should start with an executive summary, which should be written to draw the reader in. It should include a brief outline of your Business Concept - your idea, and what you intend to do - your place within the market, the key people involves, and your short to medium term objectives. You will also want to provide a sense of your vision - the wider picture regarding other applications and the future development of your business. Remember:
- Business Concept
- Key People
- Objectives
- Vision
Company Information
You will also need to include details about your business - the history of the company, your relevant contacts, and information about your premises and your achievments to date. You should also include information about any equity shareholders and a start-up summary, if necessary. Remember:
- History and Ownership
- Achievements to date
- Key Contacts
Operations, Products or Services
Clearly explain all of your products and/or services, focusing on the advantages that they will provide to the customer, and how they will be/are being produced and made available to the customer. Also provide information about the equipment, facilities, and people that will be necessary to your business, and any foreseeable future developments. You may here also wish to include information about the intellectual property ownership and/or technological aspects relevant to your business, and any technological risks that might be involved. However, make sure to keep this information understandable. Remember:
- Products/Services
- Equipment, facilities, people
- Technology/Intellectual property ownership
Market
You will want to include information about the market based on any market research that you may have done. Clarify who your target market is, the size of the market, and whether it is growing. How is the market segmented, which which segments are your targets? You will also wish to summarise a profile of your potential or existing customers: who they are, and what they need. A similar profile of your competitors - their strengths and weaknesses, and any competitive services or products that you or they may offer - should be included here, as well as information about any alternative suppliers or customers. Remember:
- Market size, segments, and growth
- Customers
- Competition
Route to Market
You should also describe how you will move your product and/or service into your target market. Demonstrate how you will be competitive, using a unique selling proposition, and outline your marketing strategy. You will also use this section to justify your sales forecast. This section of your business plan will also deal with your milestones - a crucial part of the overall plan. This will be where it becomes a real plan, with measurable activities, instead of just a document. You should therefore include as many specific programmes as possible to make it complete. For each milestone, provide a name, a person responsible, a milestone date, and a budget. Remember:
- Competitive Advantage
- Marketing Strategy
- Sales Plan
- Milestones
Management,Organisation and Key Personnel
This can be one of the most important sections of your business plan. It should include a one paragraph summary for each key personal, which should be further supported with detailed, chronological resumes in the appendix. Include information about responsibilities, training needs, salaries, and business backgrounds for each. You will also want to include information about any gaps in your team and how you propose to fill them. Include an organisational chart if necessary. Remember:
- Who's who/Responsibilities
- Job Descriptions
- Training Needs
Financial Information
In this section you will provide all of your financial information, including a summary of funding requirements, as well as projected financial results and balance sheets for 3 years. You should also have cash flow projections and a sensitivity analysis, and you should provide details of your assumptions and revenue models as well. Remember:
- Summary of funding requirements
- Projected financial results/Balance sheets for 3 years
- Profit and Loss Projections
- Cash Flow Projections
Company Needs
This section is optional. Keep in mind that VC's can provide more than just money, so you may wish to ask them about a variety of things. This may include assistance with:
- New Management (permanent or interim)
- Corporate strategy
- Developing and implementing business procedures
- Sales and Marketing plans
- Help with international expansion
- Introduction to possible marketing partners and beta customers
Any Appendices
- Management Resumes
- Detailed Financial Projections (Profit and Loss, Balance Sheet, Cash Flow projections)
- Product Brochures
- Market Research and Customer Feedback Documentation
- Testimonials/Firm orders
- Letters of interest/intent
- Product overview - case studies
- Other supporting material (Articles and press releases; Screenshots, Demos etc.)
Helpful Tips
- Your general message should be that you are a professional, and capable of running a business
- Get help from your business advisor but write the plan yourself. Remember, final version must be word processed!
- Start with a contents page and include appendices
- Have clearly numbered pages and sections - make it easy to read
- Do a bit at a time
- Learn to speak up for your plan. Don't rely solely on others reading it
- Provide alternatives - "What ifs"
- If you need a specific amount of money, ask for it at the beginning
- Remember K.I.S.S - Keep It Short and Simple
- Be SMART
Your business plan objectives should be:
- Specific
- Measurable
- Achievable
- Realistic
- Time Specified
