A basic business plan may be sufficient for your needs depending on the purpose to which you'll put the document. Are you just trying to get some ideas on paper, or develop a basic roadmap you can work from as you try to expand your business? If so, then a 3-5 page summary document might be all you need. Similarly, if you need a modest line of credit collateralized by a hard asset and you're asking a banker you've worked with for 30 years, probably a rough sketch will be enough for their files. The real questions are, who you will be presenting to and what are you seeking? If your audience is a banker you don't have an existing relationship with, an angel investor, or a venture capital firm, and you're seeking money (debt or equity), then odds are a basic business plan won't cut it. You will need a complete document including three- or five-year financial projections and a full product description, market analysis, competitive comparison, and marketing plan. If a basic business plan WILL suffice, it should include these items, at a minimum:
Concise executive summary
Description of the market opportunity
Intended use of proceeds
Snapshot of potential sales
Conclusion and contact information
The basic business plan can be structured as an extended executive summary, or a highly condensed business plan. The volume of financial data included – and how it's calculated – is up to you but make sure it adheres to the requirements of the funding source if you intend to submit for a grant, loan, etc. If you want to learn more about building a basic business plan, or need to know about the difference between an executive summary and full document for investors or VCs, contact MasterPlans today. We have worked with thousands of clients over the past decade and would be happy to add your name to our list of successful clients. Call us at 877-453-2011 today.
