Business Plan
What?◦Overview & reflection of the business and it’s
owner – thorough explanation of a business idea and how it will be executed
◦Story of what the business is and will be◦Overview of risks and assessment of success◦Research tool for improvement◦Includes – marketing, financials, management,
earnings, returns, etc., etc., etc.
Business Plan
Why?◦Company guide/Map – operational guide◦Strategy definition◦Attracts investors and lenders – key to raising
capital◦Improves success ◦Saves time and money
Sections of the Plan
For investors◦Cover Page◦Table of Contents◦Executive Summary◦The Opportunity
Problem Solution
◦The Company & Strategy Brief History (if applicable) Business Model – how are you going to make $$
◦Industry/Market Analysis
Sections of the Plan
For Investors◦Marketing Plan
Competition Marketing
◦Management & Operations◦Financial Plan
Financial analysis and projections The “ask” Exit opportunities/strategy
◦Appendices
Business Plan
Cover Page◦Name of Business◦Contact (normally founder or CEO)◦Address◦Phone◦E-mail◦Graphics if applicable◦Keep it simple
Table of Contents (really!)
Business Plan Sections
Executive Summary◦More details on this later but…◦It should be:
Clear Concise Comprehensive (enough) Compelling
◦Leave them wanting more information!
Executive Summary (cont)◦Brief overview of the full plan including
Name of business with contact information Problem Overview of Solution Market – total & relevant How you are going to reach your customer and make
money – business model Competition Management team – listed with 2 or 3 lines on each Brief Financials – include sources & uses of funds The “ask”
Business Plan Sections
The Opportunity◦Problem statement
What hole, niche, or problem are you going to address with your business?
Why are you starting this business? Begin hinting at the market you are focused on
and it’s size Begin hinting at your product/service
Business Plan Sections
The Opportunity (cont)◦Solution statement
What are you doing to solve the above stated problem
Describe your Product/Service Briefly discuss uniqueness and differentiation Briefly discuss feasibility analysis (why this
business will succeed) Any additional add-on or future products/services
Business Plan Sections
The Company◦If already established…
When started Why Overview of track record
◦Experience to date with reaching the customer◦Competitors reaction◦Some customer feedback
◦If start-up… Brief background story What has been accomplished so far
Business Plan Sections
The Company (cont)◦Business Model
Key… how are you going to make money? Discuss your customers
◦Who they are?◦Where they are?◦What makes them “tick”?◦How are you going to reach them?
Revenue drivers◦How will you get paid? ◦How much will you get paid?
Market/Industry◦Industry
Brief History How big? Is it growing? What are the current trends? Operational? Sales? Outlook? Governmental impact? Demographics Psychographics
Business Plan Sections
Market/Industry (cont)◦Market
History of the market and any recent trends State the total market briefly then define the relevant
market Market growth – cite research Discuss barriers to entry Success Factors What’s your market position? Quality, price, speed to
market Customer – who? how many? Location (if applicable) – customers there?
Business Plan Sections
Marketing Plan ◦Competition
This section needs to be very strong – many investors/bankers will say “No” based on competition
List the competitors◦Who they are ◦Who they might be◦What are/will you do to “beat” them – if you have to
Why are you different from all the other products/services out there today? SWOT analysis
Detailed differentiation How will you manage competitive threats? If you have any IP surrounding your product/service
note it here
Business Plan Sections
Marketing Plan (cont)◦Marketing mix analysis◦Sales Channels◦Channels of Distribution◦Marketing discussion included here – what
media? PR On-line Print Etc… Some specifics are needed
Business Plan Sections
Management/Operations◦Management
Current: Not full resumes! But, give details about each persons’ background –max one page per person, their role & experience
Future: what, who & when Board: Board of Directors & Advisory Board
◦Operations Location & unique raw materials and/or build-out
requirements Working capital management
Business Plan Sections
Financial Plan◦Financials
Provide a more detailed set of financial statements including◦Historical (if applicable)
Income Statement Balance Sheet Cash Flow
◦Forecast using the “best” scenario (at least three years) – include risks & assumptions Income Statement – including cash balance by year Balance Sheet Cash Flow
Business Plan Sections
Financial Plan (cont)◦Sources & Uses of Funds◦The “Ask” – very important!!!
How much Type of financing
◦Exit How will the investor/banker get their money
back?◦Bankers like “repay” as an answer, investors to not!
An IPO is a rare event Discuss potential acquirers, their prior acquisitions
& why your company fits their goals
Business Plan Sections
Appendices◦Financial Statements – detailed
Historical Forecasts
◦Good/Better/Best in overview form
◦Market research Surveys Customer feedback
◦Resumes◦Anything else beneficial
Business Plan
Other specifics◦Put your contact information on the cover page,
top of executive summary and the end◦Name of company as header on each page◦Number the pages◦Use spell check and have someone else read◦Use a large enough font that all can easily read◦Keep the margins at 1” unless you have a chart
or graph that needs more space◦Show you have “skin in the game”◦Select a “voice” and stick to it – but preferably
not 1st person…
Business Plan
There may be other items that are needed to convey your business – include them
Business Plan
Preparation Tips◦Spell/grammar check is good – use it!◦Confirm that financials “tick & tie”◦Use graphics (including charts) when applicable
– visual representations◦Always include financials and cash
requirements◦Answer the questions you would ask if you
were reading it◦Make it easy to read and to the point◦Always…tell the truth