Elements of a Basic Business Plan
I. EXECUTIVE SUMMARY A. What the organization is and does. B. Who will purchase the product or service. C. Why am I uniquely qualified and skilled in managing the business. D. What are the financial results expected. E. How much capital is required and sources of capital F. Assessment of risks II. BUSINESS DESCRIPTION A. Describe the unique qualities and value to customer of product or service provided. B. Age, size and past performance of business. C. Short and long-term objectives with milestones. III. INDUSTRY ANALYSIS A. Future outlook and trends. B. Current business conditions -national, regional, specific market. IV. MARKET ANALYSIS A. Identify target market. 1. Geographic area of target market. 2. Number of individuals or businesses. 3. Buying capacity. 4. Estimate projected market share. B. Analysis of competitors. 1. Number, size, location and market share. 2. Strengths and weaknesses. V. MARKETING PLAN A. Marketing philosophy/organization -sales force, etc. B. Advertising and promotion. C. Product price and sales terms. D. Production capacity. E. Distribution. VI. OPERATIONS A. Location of business and special facility equipment needs. B. Steps involved in producing product or service. C. Suppliers. D. Costs to produce product or service. E. Personnel requirements. F. Licenses and permits needed. VII. MANAGEMENT PLAN A. Organizational structure. B. Key managers, functions, qualifications. C. Legal form of ownership. VIII. CRITICAL RISKS A. Potential problems that could arise and their likelihood. B. Plans to manage problems. IX. FINANCIAL DATA A. History, if applicable. B. Income statements (projected) -specific assumptions on income statements, number of years. C. Cash flow forecasts -specific assumption on cash flow forecasts, number of years. D. Balance sheets (pro forma) -specific assumptions on balance sheets. E. Breakeven analysis. F. Source and applications of capital.