Business Plan Format

Universal Elements of a Business Plan Include:

I	Executive Summary (no more than two typed pages)

A	Company name, address and telephone number
B	Names, addresses and telephone numbers of all key people
C	Brief description of the business
D	Brief overview of the market for the business' product(s)
E	Brief overview of the strategic actions that the business will take to achieve  success
F	Brief description of the managerial and technical expertise of key personnel
G	Brief statement of financial requirements, what the funds will be used for, and at what time any debt (i.e. loans) will be repaid
H	Balance sheets, income statements, cash flow statements for the last three years of operation

II	Detailed Business Plan

A	Industry Analysis
1	Industry background and overview
2	Trends
3	Growth rate
4	Outlook for the future

B	Background of the Business
1	Brief history of the business
2	Current position/situation of the business
3	Mission statement
4	Sources of competitive advantage -- unique features of the business
5	Ways that the business creates value for customers
6	Key factors that will prescribe success for the business (i.e. quality,
price competitiveness, dependability, technical features, durability, …)

C	Market Analysis
1	Who are the potential consumers of your product?  (Be specific)
2	What is the consumers' motivation to purchase?
3	How many consumers does the market contain?  (What is the size of the market?)
4	What are the consumers' potential annual purchases?
5	What is the nature of the purchasing cycle?	
a	Is the product a durable good that will last for years, or a product that is   repurchased on a frequent basis?
b	Is the product likely to only be purchased during seasonal times of the year?
6	Specific to the target market -- what does the business know about the potential consumers in the geographic area?
a	What are the specific product features that influence the consumer's purchasing decisions?
b	What, if any, research is available to support your conclusions?
c	Do the consumers have a preference regarding where they purchase comparable products?  How strong is this preference?
7	Pricing Strategies
a	Cost structure: fixed and variable costs
b	Business' prices -- as compared with competitors prices.
8	Advertising and promotion strategies
a	Most effective media for reaching the target audience
b	Media costs
c	Frequency of usage
d	Means of generating publicity for the business
9	Distribution strategy
a	Channels of distribution
b	Sales technique and incentive
10	External market influences
a	Economic factors	
i	Inflation
ii	Recession
iii	High or low unemployment
iv	Interest Rates
b	Social factors
i	Age of the consumer
ii	Demographics -- location 
iii	Income levels
iv	Household size
v	Social attitudes
c	Technological factors

D	Competitor Analysis
1	Existing competitors
a	Who are the existing competitors?  List identified major competitors.
b	What factors may cause potential customers to buy from the competitor right now?
c	How will the business be affected by the competition?
2	Potential Competitors
a	Who are the potential competitors and why might they enter the market?
b	What effect would the competitors have on the target market segment if they entered?
c	What are the strengths and weaknesses of each key competitor’s business?  How will the business be affected by the competitor’s strengths and weaknesses?

E	Strategic Analysis
1	Core competencies
2	Market position and image
3	SWOT Analysis
a	Strengths
b	Weaknesses
c	Opportunities
d	Threats
4	Business Strategy
a	Cost leadership strategy
b	Differentiation strategy
c	Focus strategy

F	Strategic Action Plan
1	Identify specific performance goals and objectives and their association with the company’s mission
2	Summary of the business’ production and marketing strategies
3	Describe how these marketing strategies will be put into action
4	What control procedures will the business establish to keep operation on track, including measures of performance

G	Organizational and Managerial Specifics
1	Business organization
a	Legal (corporation, S corporation, limited liability company, limited partnership, general partnership, sole proprietorship)
b	Functional (division of authority and chair of command)
c	Organizational chart

H	Financial Plans
1	How much money is required to make the business and its products successful, long-term?  Be both specific and realistic in your analysis.
2	Create a budget.  Demonstrate to the banker or investor the amount of money necessary; why it is necessary; and how the business plans to generate revenues from operations and sales.
a	Materials
b	Labor
c	Equipment
d	Marketing
e	Overhead
f	Other 
3	Present actual and projected balance sheets and income statements
4	Prepare a breakeven analysis
5	Prepare a ration analysis – use comparisons with industry standards
6	Create cash-flow projections

I	Loan Proposal
1	Purpose of loan
2	Amount requested through loan
3	Schedule of repayment or “cash out” schedule (exit strategy)
4	Implementation