Writing Business Plans
What goes into a business plan?
The body can be divided into four distinct sections:
- Description of the business
- Marketing
- Finances
- Management
You should also should include an executive summary, supporting documents, and financial projections.
One of the best ways to learn about writing a business plan is to study the plans of established businesses in your industry.
Although there is no single formula for developing a business plan, some elements are common to all business plans:
I. The Business
- Description of business
- Marketing
- Competition
- Operating procedures
- Personnel
- Business insurance
II. Financial Data
- Loan applications
- Capital equipment and supply list
- Balance sheet
- Break-even analysis
- Pro-forma income projections (profit & loss statements)
- Pro-forma cash flow
III. Supporting Documents
- Tax returns of principals for last three years Personal financial statement (all banks have these forms)
- For franchised businesses, a copy of franchise contract and all supporting documents provided by the franchisor
- Copy of proposed lease or purchase agreement for building space
- Copy of licenses and other legal documents
- Copy of resumes of all principals
- Copies of letters of intent from suppliers, etc.
