Although there is no single formula for developing a business plan, some elements are common to most business plans. They are summarized in the following outline:
Elements of a Business Plan
- Executive Summary - According to the Small Business Administration, “The executive summary is the most important section of your business plan. It provides a concise overview of the entire plan along with a history of your company. This section tells your reader where your company is and where you want to take it. It's the first thing your readers see; therefore it is the thing that will either grab their interest and make them want to keep reading, or make them want to put it down and forget about it. More than anything else, this section is important because it tells the reader why you think your business idea will be successful.”
- Statement of purpose
- Table of contents
I. The Business
A. Description of business
B. Marketing
C. Competition
D. Operating procedures
E. Personnel
F. Business insurance
II. Financial Data
A. Loan applications
B. Capital equipment and supply list
C. Balance sheet
D. Breakeven analysis
E. Pro-forma income projections (profit & loss statements)
F. Three-year summary
G. Detail by month, first year
H. Detail by quarters, second and third years
I. Assumptions upon which projections were based
J. Pro-forma cash flow
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III. Supporting Documents
A. Tax returns of principals for last three years and a personal financial statement
B. For franchised businesses, a copy of franchise contract and all supporting documents C. Copy of proposed lease or purchase agreement for building space
D. Copy of licenses and other legal documents
E. Copy of resumes of all principals
F. Copies of letters of intent from suppliers, etc.
