What does a typical business plan cover? A typical business plan describes a business opportunity, shows the market conditions for the concept, and offers an estimate of the company's potential profitability over a period of 3-5 years. Typically the 3-year financial model is suitable for bankers making loan decisions or SBA reviewers considering whether to extend a line of credit, whereas a 5-year financial pro forma is required by most angel investors and venture capital firms. Business plans of all sorts will describe the service suite or product in as much detail as possible. The banker/investor needs to understand exactly what you propose to provide or sell. The market analysis – often considered the most difficult part of the document creation – should show the climate for your company's service, the market need, the target customer you envision, a brief industry analysis, and a competitive comparison that looks at other companies similar to yours. A typical business plan will also have all of the following:
• Executive Summary
• Use of Funds
• Investor Share/Loan Payback Table
• Marketing Strategy
• Competitive Advantages
• Management Summary & Personnel Plan
• Management Team Gaps (if applicable)
• Financial Indicators
• Exit Strategy
This list is not comprehensive, but it includes most of the features common in bank lending and investment business plans. You can tailor these sections to your needs or spend more of your time working on the most vital parts depending on your audience, your business idea, and your stage of development. Need help catering your plan to a specific audience, or do you just need a “typical plan†developed? MasterPlans is here for you! We have produced more than 8,000 business plans so far, and we have a strong track record of success developing funding-ready documents dating all the way back to 2002. Our in-house team of business planning experts can deliver for you too. Call 877-453-2011.
