Entrepreneur.com defines a business Plan as a document that tells you: What you plan to do How you plan to do it.

t. Generally projects 3-5 years ahead from the starting of the business Strategic in nature (how to get to where you want to be with the resources) Remains with you till end of the business Helps potential investors understand your business Needs continuous revision.as business evolves

Executive summary
Company description Market Analysis Business environment Organization and management Service or product line Marketing and sales

Funding request*
Financial Projections Appendix

Most important section Often written at last (even though it appears at the beginning) Includes mission statement

company info
growth highlights product/services financial info summary

Helps potential investors understand the goal of your business Nature of the business (industry, b2b etc..) How your product/service meets the needs List specific consumers that your business will service Competitive advantage (novice technology, cost, time lag, location etc)

Illustration of industry, market knowledge, and research findings Industry description (size, trends, cycles, growth) Market segmentation Target market (size, characteristics)

Pricing and margin (pricing structure)

Competitive analysis (SWOT, barriers, market share) Regulatory restrictions

Organizational structure ( chart, responsibilities) Compensation (remuneration, salary) Ownership information (name of owners, percentage ownership, form of company, profiles, prior experience, industry recognition, skills) Board of directors profiles (name, position, background) Responsibilities

Description of product/service Products life cycle Intellectual property R&D activities

Competitive comparison
Technology Future products/services

Marketing strategy includes Market penetration strategy Growth strategy( acquisition, franchising, product addition etc) Channels of distribution strategy Communication strategy Promotion strategy

Sales strategy includes: Sales force strategy Sales activities

Demand Management Positioning strategy

This section is included only if you are seeking funds. It should include: Current funding requirements Future funding requirements Use of funds (as w/c, capital expense, acquisition etc)

Strategic situational plan (incase of buyout, debt repayment, selling the business, being acquired etc)
Type of funds you'd like to have (equity or debt)

1) Historical financial data* - Needs to be provided if you have already established your business. Normally last 3-5 years data. Includes balance sheets, cash flow statements etc..) 2) Prospective financial data Where the company is expected to reach in next 3 or 5 years. Should include forecasted balance sheet, cash flow statement etc. For first year monthly projections Subsequent years quarterly or half yearly projections State the assumptions made Consistency with the funding request

Certain other sections can be added to the business plan on an asneeded basis:

Web Plan summary

Business Environment analysis Operational Plan Appendix Legal documents Pictures of product Letter of reference* (incase seeking funds)

Its inevitable if you are seeking funds Gives you a better idea about your own business Can serve as a guide to your business all along.

If you are not seeking funds, it need not be in a formatmay very well be written on the back on an envelope.

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