A strong business plan has few surprises for it's audience. It conforms to
generally accepted guidelines according to form and content. Each section
should include specific elements that will clarify your business goals. Your
plan should address all the relevant questions that will be asked by
individuals who review it, mainly investors or potential business partners. If
your business plan is not structured to provide the appropriate information in
a concise and logical progression, your chances of satisfying the key
questions concerning development and operations will decrease. A general
business plan will consist of the following:
Cover Sheet
Name of business, address and telephone number and the name(s) of
principal(s). Include any pertinent contact information (cell phone, fax…)
Executive Summary –
Statement of Purpose
A summary of the business covering at least the following items: the name of
the business, its legalstructure, the amount and purpose of a loan request, a
repayment statement, business concept; product information; current stage of
business (start-up, developing or existing); and anticipated financial
results and other benefits.
Table of Contents
The Business
a.
Description of business: What product or service will you provide?
b.
Historical development: List the name, date of information, legal
structure, subsidiaries and degrees of ownership of your business.
c.
Product/service lines: What is the relative importance of each
product/service? Include sales projections based on research conducted to
identify the market..
d.
Market segment: Who will buy your product? How many of them are there and
why will they want what you are offering?
e.
Competition: Describe competing companies and how your business compares.
Remember to include allsubstitute
product/service providers.
f.
Location: Where will you locate and why?
g.
What
will be your hours of operation?
h.
Marketing: what
marketing methods will you use?
Management
a.
Business format: Is your business a sole proprietorship, partnership,
limited liability company or corporation? Explain why you chose this form
of business compared to others.
b.
Organizational chart: What is the personnel structure? Who are the key
individuals and planned staff additions? How many and of which type will
you need at the different stages of the business cycle?
c.
Personnel: What are the responsibilities and past experiences of partners
and employees? How will theycontribute to the
success of the company?
Finance
a.
Description of the project.
b.
Total estimated project cost. Do NOT expect the lender to tell you how
much money you can borrow. Explain how much money you need and WHY.
c.
Breakdown of the proposed uses of project funds. Consider presenting the
total project in stages or phases of development to better identify cash
requirements.
d.
Lending institution participation, including terms and conditions.
e.
Equity participation of the owners and investors.
f.
Projections and assumptions for
(1)
Two
years of both Profit and Loss statements and Balance Sheets.
(2)
One
year of company Cash Flow, month-by-month.
g.
Personal financial statement of owner.
Production
a.
Description: How will production or delivery of services be accomplished?
b.
Capacities: What physical facilities, suppliers, patents, labor and
technologies exist or will be used?
c.
Capital equipment: What type and amount of machinery and durable equipment
is needed to operate the business?
d.
Supplies: Where and how will you obtain your components and day-to-day
supplies and services?
Supporting Documents Include personal
resumes; personal financial statements; cost of living budget; letters of
reference; letters of intent; job descriptions; copies of leases, contracts
and other legal documents that help convey an accurate picture of the
business. Also include descriptive drawings to identify proposed site plan
of facility and floor plan of operations.
