Writing and Compiling Your Business Plan
Just as a book is separated into chapters which follow a logical sequence, so too should be your business plan. Here is an example of the section headings you could use to compile your plan:
Contents Page
The Executive Summary
The Nature of Your Business
Your Product or Service
Your Market and Competitors
Your Marketing Plan
Operations
Financial Forecasts
Financial Analysis
Appendices
A quick overview
Contents page
It is a matter of personal preference whether this follows or precedes your executive summary.
The executive summary
This is a brief yet concise statement which is designed to give your reader an overview about your business by summarising the key points. Here you should describe the following:
- The current position of your business.
- Details about who will be buying your products or services, in what quantities and why.
- Your short, medium and long-term objectives and how they will be achieved.
- A summary of your financial forecasts.
- Details of how much money you need.
The nature of your business
This section of your plan should give your reader an understanding about who you are, what you do and how you do it. The following points should be covered:
- Your business name, address and contact telephone number.
- The legal status you will trade under.
- Details of your key members of staff including yourself.
- Your location.
- Your business objectives and how these will be achieved.
- Your mission statement.
Your market and competitors
This section of your business plan should describe the market you are in. It should highlight who your clients will be, what they will expect from your products or services, and details of who and where your competitors are.
Your marketing plan
Your marketing plan will describe how you will promote and sell your products or services. It will include details of:
- market research
- your target market
- the competition
- marketing methods.
Operations
Your operational plan is the nuts and bolts of your business. It will illustrate to your reader the steps you will take to make sure your business will operate both successfully and profitably.
Financial forecasts
This is the most difficult part of compiling a business plan. Obviously you will feel optimistic, but it is essential to be realistic. Any bank manager who knows his job will be able to see through any proposal based on inflated figures which make the balance sheet look good. The only person you will be fooling is yourself. Your market research will be able to provide you with an accurate sales forecast.
Financial analysis
This will go hand in hand with the sales forecast as the sales forecast is presented in the form of cash flow forecasts which in turn lead to profit and loss and balance sheet forecasts.
Appendices
In the appendices you should include any information which will support and verify any statements and assumptions you have made in other areas of your business plan.
