Business plans can be used by companies to obtain financing, to provide a process and discipline for setting goals and evaluating the company’s performance, or to evaluate new products and services.

After determining the purpose of the business plan, write the plan with your audience in mind. Will your plan be used internally or externally? External plans are generally start-up plans, growth or expansion plans or new product plans where financial capital is needed. A financial history is most important to banks, while investors may look more closely at the company’s management. Internal plans, such as those designed to evaluate a new product line, may be more operationally focused than financially focused and written strictly for management.

Since business plans have different objectives, there is no single outline for a plan. However, a business plan generally has a standard set of components, including:

• Executive Summary (purpose of the plan, company information, goals, product/service, competitors, market, 3-5 year financial forecasts, financing required, key management’s experience and accomplishments)
• Summary of company's objectives (long term and short term)
• Management (responsibilities and resume information)
• Product/service information (why it will sell, current status of developing product, etc.)
• Market (demographics, potential, strategy, is it growing or stagnating?)
• Financial data
• Operations plan
• Software, books and websites such as the Small Business Administration web site provide helpful tips and samples. Business consultants may be helpful in developing a business plan, especially if it is an external document or large undertaking.

 
Please Note: This material is provided as general information and is not a substitute for legal or other professional advice. Contact the Knowledge Center for more information.
 

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