Do business plans have chapters? In a manner of speaking, they do. There's no right or wrong answer to how a business plan should be compiled, and the ordering and content of each section can be specific to your business or concept, but there is a generally accepted layout to the standard plan. Whether you plan to present to angel investors to get an equity infusion or you intend to take the document to a bank in search of an SBA loan, the most typical format involves an introduction to your business, the planned use of funds, a description of what you offer, the market for it, and your strategy to get customers or clients. Finally, the financial pro forma ends the plan. The chapters of a business plan can be understood as follows:
• Executive Summary
• Products & Services
• Market Analysis
• Marketing Plan
• Management Summary
• Financial Projections
Now, each of these header topics will include some number of sub-headers. For example, the market analysis is not a stand-alone section; it should include sub-chapters about the target market, the market need, the industry, and the competitive landscape. This is your space to show what you know about the industry generally, your target customers and strategies, and the other companies that might be better established than yours. The financial pro forma, too, should show not just a highlights table but a revenue forecast, break-even point, profit and loss, cash flow, and balance sheet. Depending on your company and its funding needs, additional sections like investment rations, ROI calculators/proposition, or an exit strategy may also be prudent. Feel a little lost? Call MasterPlans today and learn how our team of experts can assist you. 877-453-2011.
