Wondering what the best business plans inclusions are? Which pieces of the document you should make sure to include, and which are the least relevant? It depends on your business model and the audience you will be presenting to. For example, banks reviewing business plans on behalf of the Small Business Administration require that you show the market need, illustrate a fixed break-even point, and include a full breakdown by month for Year 1 of operations post-funding. With some investors, you could probably omit the monthlies or show a floating break-even that hinges on a sensitivity chart. And the market need is often so obvious that you can leave it out, but the SBA wants to see these details no matter what. What else is “rubber stamp necessary†versus optional? It really varies. But it's good to include:
• A complete pro forma showing revenue, balance sheet, profit and loss, and cash flow
• A market analysis that includes an industry snapshot, competitive comparables, and target market
• A marketing strategy that at least indicates the strategies you might use
• The executive team bios – one write-up for each owner or integral team member
The business plan can often do without exhaustive descriptions of potential future market opportunities or other parallel offerings that could be years off, especially if you're not able to model them into the business plan. Also, the exit strategy – in addition to being a bit presumptuous – rarely conveys anything that an investor can't surmise on their own, so this piece can be left out of many upper-level plans. What else? If you have specific questions, want to have your draft reviewed, or need to get a business plan written by an expert who can deliver results you can be sure of, call MasterPlans. We have been writing business plans since 2002 and we've helped many companies expand by streamlining their proposals. Call a consultant today to talk about it. Toll-free: 877-453-2011.
