written document that details a proposed or existing venture, describing the vision, current status, the markets in which it operates, and the current and projected results of a business.
Purpose of a Business Plan
"business story", defines intentions, identify opportunities and describe how the business will fill them, summarize financial goals and help attract financing if needed.
components of a business plan
cover sheet and table of contents, executive summary, company and management team, market analysis, product service, sales and promotion, financials, appendices.
basic company info, company logo, contact information, month and year, preparer's name, document number.
organizes content, highlights key points, conveys excitement. After reading person should understand the business's purpose, values, operating methods, and profitability outlook. Should contain information about the companies unique competitive advantage and projections for future sales, growths, and profits.
Company and Management Team
presents the "big picture". Mission statement, industry profile, company profile and strategy, anticipated challenges and planned responses, the management team.
identifies who your customers are and explains how you will reach them. Explain the benefits of your product, explains what about your product will give you the competitive advantage. Assesses competition.
The Product or Service
describe the product or service, list any competing product testing, list any trademarks copyrights or patents, list ongoing services such as warranties, explain how the product will be produced (list suppliers), provide detailed price strategy.
Sales and Promotion
how you intend to implement the marketing plan. Product promotion including advertising, techniques for accessing your target market, selling approach, evidence of past promotional success.
income statement, balance sheet, cash flow statement, financial history, forecasts, financial scenarios (best-case, worse-case, expected-case), statement of funding requirements, summary of key info and assumptions.