Wondering about the ideal business plan set up? There's some debate about the ideal presentation format (PowerPoint? InDesign pamphlet-style? Word doc?), but the structure of the business plan is consistent across all types. The plan needs to offer a concise, compelling executive summary coupled with a funding request, a use of funds table, and a start-up summary. For existing businesses, in lieu of a start-up section, provide a description of your company history to date and use P&L and balance sheets from recent years to create a past performance snapshot. From there, the business plan needs a full description of your products or services, best presented with accompanying graphics or pictures. Then it's on to the market analysis, which should answer these critical questions:
• What is your target market and how has it grown/contracted in recent years?
• What is the state of the industry currently?
• What is the market need you fulfill?
• What is your target market segment strategy?
• Who are the primary direct competitors and how well do they do?
• What are the secondary competitive threats you'll face, if any?
Once the market section is done, you will turn your attention to the marketing component of the business plan. This section describes how you intend to promote your business and its products, mainly by showing which marketing channels you will dedicate the biggest chunks of your budget to. The business plan also needs a personnel plan showing which people you'll hire, when, and at what salary or hourly pay rate; this becomes part of the larger pro forma, which shows the overall revenues and expenses to yield a profit and loss statement that bankers/investors can review. Need assistance putting all of this together? Call MasterPlans. We've helped 8,000 people get their documents in shape and we can deliver for you too: 877-453-2011.
