Business plan essentials
Your business plan should cover all the elements of your business, along with strategies for growth and
success. In addition to a cover page that lists your company name and contact information, your business
plan should include the following elements.
Table of contents
Make your business plan an easy, compelling read by listing each section that is included in your plan in the
table of contents. A helpful table of contents typically includes:
Section headings that help readers identify broad-level topics that might interest them.
Descriptions of what is included in each section.
Page numbers that readers can use to quickly flip to what they most want to learn.
Executive summary
The executive summary is probably the most important section of your plan. Many readers will first read the
summary and then, if they're interested, move on to other sections.
In two pages or less, your executive summary should discuss:
Your business objectives.
Market opportunities.
How your business will make money.
You might find it easier to write the executive summary last, after you've finished researching and writing the
other details of your business plan.
Company mission
Step back and think about what first sparked your interest in starting this business. When describing your
company's mission, you should describe it so that someone who is unfamiliar with your field or industry will
understand why your business approach has value. This section should include:
A company mission statement.
Significant trends, industry innovations, or top players in the market.
A summary of the current state of your industry and its future. You're creating a map so that you
can show where your idea fits in and why your company fills a gap in the industry or addresses a
consumer need.
Description of target customers, as well as your strengths in the marketplace.
Details of the legal business structure that you anticipate to select or that you have already
formed for your company.
Products and services
Explain what you plan to sell by answering these questions:
What is your product or service?
What makes your product or service special or desirable?
Why will customers want your product or service?
What will your company do that competitors' products or services do not do?
Where in the market do you plan to position your product or service — top, middle, or mass
market?
If your product or service requires training or legal oversight or regulatory compliance, be sure that you
include a plan for that as well.
Marketing plan
A marketing strategy is the heart of a business. How can you make money if you don't know how to sell your
product? Your marketing plan should include the following:
Summary of your market position and goals.
Market objectives that include specific targets. The statement, "We will sell 150 widgets by the
fourth quarter" is more convincing than, "We will own the market in widgets."
Customer research or market research that explains the size of your market and the percentage
of the market you intend to target.
Perceived barriers to market entry. Explain honestly what you foresee as difficulties in getting
into the market. Describe any special marketing advantages you may offer, such as guarantees or
distribution rights.
Marketing expenses and resources and how they will be allocated.
Marketing channels that you plan to use, such as e-mail campaigns and radio or billboard
advertising.
Implementation plan that designates responsibility, sets deadlines, and holds people
accountable for marketing efforts.
Operations plan
In this tactical section of your business plan, provide details about these issues:
Office or facility requirements
Equipment needed or manufacturing capabilities
Human resources (full-time employees, contractors, consultants)
Inventory control or quality assurance processes
Operation funds required, including rents, leases, licensing, registration, and production costs
A floor plan of the office, retail, or manufacturing space that you've chosen
Management
The management section of your plan is the place to toot your own horn and profile your launch team's
achievements, skills, and experience. Usually, investors care more about who's driving a new business than
they do about the business' rosy financial projections.
Don't be shy or modest. Provide a biography of each key player in your business and a description of what
they bring to your launch party.
Finances
The financial section in your business plan is your statement of what money is coming in to your business
and what's going out. It should include the following:
Detailed outline of your cash flow expectations, usually with a 12-month projection.
Projections for sales, expenses, and margins of profits.
Projected balance sheet that describes what is required for your business to break even and
then become profitable.
Appendices
The appendices include footnotes, charts, and research that support the assumptions and projections you
made throughout your business plan. Items in this section can include the following:
Media articles
Research documents or studies
Advertising or marketing prototypes
Photocopies of leases or contracts
Tone will tell
Don't get bogged down in an avalanche of facts and figures while drafting a business plan. Instead, walk a
judicious line between narrative and statistics. You're telling the story of your business, and you're making
an argument for success (and perhaps for backing).
Here are some tips to make your business plan more compelling:
Capture attention The executive summary of your business plan must be both exciting and
readable. Avoid technical or industry terms. If you must use complicated terminology or concepts, be
brief and define them.
Put yourself in the mind of the reader Your business plan is about the market and how you
will make money, not about how smart you are for coming up with a fabulous new product. Be sure
that you stick to the goal of the plan, which is to persuade readers that your business is a viable entity.
Be realistic Don't avoid potential weaknesses in your plan, and don't gloss over strong
competitors in the industry. Most likely everyone who will read your plan is an interested, astute
professional. If you leapfrog problems or difficulties, you lose credibility.
Showcase your ending Be sure that the last page of your business plan is as dramatic as the
first. Don't trail off into numbers or detailed explanations. Sum up your plan with as much enthusiasm
as you expressed at the beginning of your plan.