Basics of Writing a Business Plan
June 27th, 2008 admin
Writing a business plan is an essential part of creating a successful business. A business plan should always be a work-in-progress as not only will a business plan play an important role in the solicitation of investors, a well written business plan can assist a business stay on track with pre-defined objectives.
What exactly goes into writing a business plan? The SBA advises that the body can be divided into four distinct sections :
1) Description of the business
2) Marketing
3) Finances
4) Management
Agenda should include an executive summary, supporting documents, and financial projections. Although there is no single formula for developing a business plan, some elements are common to all business plans. They are summarized in the following outline:
Standard Elements of a Business Plan
- The Cover sheet
- The Statement of purpose
- Table of contents
- The Business
- Description of business
- Marketing
- Competition
- Operating procedures
- Personnel
- Business insurance
- Financial Data
- Loan applications
- Capital equipment and supply list
- Balance sheet
- Breakeven analysis
- Pro-forma income projections (profit & loss statements)
- Three-year summary
- Detail by month, first year
- Detail by quarters, second and third years
- Assumptions upon which projections were based
- Pro-forma cash flow
- Supporting Documents
- Tax returns of principals for last three years
- For franchised businesses, a copy of franchise contract
- Copy of proposed lease or purchase agreement for building space
- Copy of licenses and other legal documents
- Copy of resumes of all principals
- Copies of letters of intent from suppliers, etc.
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For more information, visit the Small Business Association (SBA) Small Business Planner. You will find a wealth of resources regardless of your businesses size or industry.
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