Curious about business plan framework? The basic format of a business plan is to provide an introduction (an executive summary and use of funds table) first, followed by a description of the products and/or services that your company plans to bring to the market. Then, in the third section of the plan, you look at the market conditions for your concept – who are you planning to sell to and how strong is this market base, what are their needs, how has the industry performed in recent years, and who are the leading competitors you'll be squaring off against? From here, look at the marketing your business can do (strategy/implementation plan) followed by the credentials of your management team and staff. From that point, it's on to the financial pro forma:
• The use of proceeds/start-up summary
• Revenue forecast
• Break-even analysis
• Profit and loss table
• Cash flow statement
• Balance sheets
The pro forma financial model is a vital part of the business plan framework, and whether you use software, your own program, or a consulting firm that builds business plans, make sure that your model makes a compelling case for investment. Your plan should show researched market assumptions that justify whatever increase you project in your sales rate year over year. The break-even should be achievable but not overly aggressive, and your plan should demonstrate that a variance in sales (a 15-20% dip) won't devastate the bottom line. The first year needs to be broken into months (generally in an appendix). Need help with the business plan framework? Call the expert team at MasterPlans.com to learn how our modelers and writers can assist you in the development of a funding-ready proposal. (877) 453-2011.
