Elements of A Business Plan

Elements of A Business Plan

Format One

  1. Cover Sheet
  2. Statement of Purpose
  3. Table of Content


  1. The Business
    1. Description of the business
    2. Marketing
    3. Competition
    4. Operating Procedure
    5. Personnel
    6. Business Insurance
    7. Financial data
  2. Financial Data
    1. Loan application
    2. Capital equipment and Supply list
    3. Balance sheet
    4. Breakeven Analysis
    5. Pro-forma income projections (P/L)
      1. The year summary
      2. Month to month first year
      3. Details by quarters, 2nd and 3rd years
      4. Assumptions on projections
    6. Pro-forma cash flow
  3. Supportive documents

Format Two

  1. Table of content
  2. Summary of highlights
  3. The Business and the industry
    1. Nature and history of the business from its inception
    2. The legal form of the business
    3. Goals and objectives
    4. Unique advantages and opportunities
    5. Description of the business operation
  4. Products and services
    1. Developing a sales forecast
  5. Market Strategy
    1. Target market
    2. Market segmentation
    3. Promotion strategy
    4. Source of information
  6. Management Team
  7. Financial proposal
    1. Financial summary
    2. Historical financial analysis
    3. Prospective financial statement
    4. Assumptions to financial statements
    5. Analysis of risk
  8. Appendices

Format Three

  1. Executive summary
  2. Description of the business nature of the business. What does it do and for whom? Opportunities and reasons for the plan, what industry? The maturity of the industry? Product and services provided and why deemed. What is the business state of development? Summary of the strategic plan. History of business.
  3. Management and organization relevant expertise of each member of the mgmt team. Outline the compensation packages. How does your organization grow with the business? Describe the management information systems. Relevant expertise of the Board of Directors. Significant liability, legal. Insurance and tax issues and how handled.
  4. Market
    1. Customers- customers who could be served. Target market, both current and desired. Needs and wanted of the customers. Product and service benefits.
    2. Competitors-Who? What are their products? Markets served? What makes them successful? Nature of future competition. Market position; current and desired. What’s unique about business? What makes the product different?
    3. Pricing-Unit of sale pricing method; are prices different across segments; how do they compare with the competition?
    4. Market and Sales
      1. Current methods and plans;
      2. PR and Advertising;
      3. Expertise needed;
      4. Dependency on repeat or continuous customers;
      5. How is message marketed?
  5. Product and Service-development and testing, manufacturing and assembly delivery
  6. Assumptions
  7. Uncertainty and risk (refer to assumptions)
  8. Growth and exit-Revenues, net income, customers, units, etc
  9. Financial-Financing structure: debt and equity-breakeven/proforma cash and expenses; P/L.


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