Guide to Writing a Business Plan
*If you wish to print, please download the full document here:*
General Guidelines
• Business plan should be clear, concise and neatly formatted
• Recommended to use Microsoft Word and Microsoft Excel for financial statements
• No fancy graphics or flowery language
• Use of business planning software, if needed
o Step-by step approach to business plan writing process
o Formats the plan for you
o Less flexibility in conveying the uniqueness of your business
I. Executive Summary
Summarizes the most important information within the pages of your business plan - the people, the idea, the market, the competition, the strategy - the executive summary is usually written last.
A. Summary of each section in the business plan.
B. 2-3 pages long
C. Attention-getting to make reader want to read the entire plan
D. Clear, concise and convincing
E. Should include basic business concept, strategic relationships, major achievements, the owners & their credentials, products and/or services, sales & growth.
II. Table of Contents
III. Business Summary
Details the mission, goals, value proposition, business model, and key assets. After someone reads this section of the plan, they should be able to "get" what you're offering with total clarity!
A. Industry history
B. Business history
C. Mission
D. Ownership
E. Locations
i. Address
ii. Description of area
iii. Size
iv. Owned or leased
v. Hours of operation
vi. Access to business (freeway, street)
vii. Parking
F. General to specific description of business
G. Overview of operations
H. Competitive advantages
I. Major achievements
J. Goals
IV. Products
A. Description
B. Suppliers of products or materials
C. Quality
D. Price
E. Special features/ competitor comparison
F. Seasonality
G. Where it is in its life cycle
H. Future products
V. Marketing Plan
A. Target market
B. Market analysis
i. Demographic data
ii. Geographic data
iii. Psychographic data
iv. Market trends
v. Barriers to entry
vi. Demand for product
C. Industry analysis
i. Barriers to entry
ii. Industry regulations
D. Market share
E. Customer needs
F. Competitive analysis
i. Local competitors
ii. Health of their business
iii. Similarities/differences between you and them
G. Competitive disadvantages/Competitive advantages
H. Sales strategies
I. Pricing strategy
J. Advertising strategy
K. Growth strategy
VI. Operational Plan
A. Organizational structure
B. Personnel
i. # of employees
ii. Type of labor
iii. Quality of staff
iv. Hiring procedures
C. Legal structure
D. Accounting & legal team
E. Daily operations & processes
F. Production & delivery
G. Technologies
H. Insurance Carriers
I. Operating regulations
J. Environmental regulations
VII. Exit Strategy (Conclusion)
Puts into words what you see as the ultimate destiny of the company, especially as it may affect those who finance your new business, as well as other equity holders in the startup.
A. Restate your most important points
VIII. Financials
A. Source and amount of initial equity
B. Monthly operating budget
C. Expected return on investment
D. Monthly cash flows
E. Projected three-year income statement
F. Projected three-year balance sheet
G. How sales were projected
H. Ratios
I. Break-even point
J. What-ifs, alternatives to possible problems
K. Internal accounting procedures
L. Personal financial condition (Personal Financial Statement, SBA Form 413)
Cash Flow Projections
This is a very important aspect of the business plan and is really the business plan shown in dollar financial terms. You should change anything and everything to make the spreadsheet fit your business including the column and row titles.
➢ The first column is the entire cost of the project from now till the day you open the doors and then there are 12 columns for each month’s revenues and expenses.
➢ Under labor cost, do not include yourself if you are going to work in the business. Show your salary on the last line that is labeled "owner’s withdrawal.” This amount should be the amount you forecast that is needed from the business to support your family every month.
➢ On the line principle and interest, show your monthly payment as 1.5% of the total loan. ie. $1,500 payment for a $100,000 loan. This will serve as an approximation until we get better information from a loan officer at a later date.
This cash flow projection should be completed even if not all the figures are known or accurate. Use your best guess. This should be considered a work in progress and it will be edited and reviewed every time you get better information or hear back from a supplier, contractor, land owner etc.