A business plan’s contents are no secret. Many books, articles, and courses describe the major sections of a business plan. Although variations exist, there are key sections common to most outlines in business planning literature.

Executive Summary

An executive summary, generally one page to a few pages at most, covers all of the main points of the business plan to come.

Company Overview or Description

The next section begins with an overview of the current situation of the company. This covers who the founders are and why they started the company, what the products or services offered are or will be, and what steps have been taken toward the launch to date.

Market Analysis

Sections detailing research and analysis done on the market for the business come next. This should begin with an overview of the market or industry, including its size, breakup, and trends it is experiencing going forward. Data on the specific customer segments and competitors for the new business follow.

Marketing Plan

A marketing plan then covers what is generally called the 4 Ps of Marketing: Product (description of the products or services offered), Promotion (the promotional tactics to be used), Pricing (the pricing strategy for the business), and Place (the location for a retail facility or other means of distribution for the product or service).

Operations and Management Plans

The next section or sections detail the plan for how the company will operate and be managed. This must include details on who the managers are and their qualifications, whether they are partners or hired employees.

Financial Plan

The business plan continues with a description of the financial results the business intends to see, and the underlying cost and revenue assumptions. The financial section also details the amount of capital needed, what the funding will be used for, and the sources of funding that are being sought.

Appendices

Finally, a business plan concludes with appendices of documents which support the plan further. The appendices include full pro forma financial statements (income statement, balance sheet, cash flow statement) as well.

A business plan precisely defines your business, identifies your goals, and serves as your firm’s resume. The basic components include a current and proforma balance sheet, an income statement, and a cash flow analysis. It helps you allocate resources properly, handle unforeseen complications, and make good business decisions. Because it provides specific and organized information about your company and how you will repay borrowed money, a good business plan is a crucial part of any loan application. Additionally, it informs sales personnel, suppliers, and others about your operations and goals.

Importance of a Business Plan

The importance of a comprehensive, thoughtful business plan cannot be overemphasized. It is important for:

- outside funding
- credit from suppliers
- management of your operation and finances
- promotion and marketing of your business
- achievement of your business goals and objectives

Despite the critical importance of a business plan, many entrepreneurs drag their feet when it comes to preparing a written document. They argue that their marketplace changes too fast for a business plan to be useful or that they just do not have enough time. But just as a builder won’t begin construction without a blueprint, eager business owners shouldn’t rush into new ventures without a business plan. It is true that the marketplace changes too fast for any long-term business predictions to come true; nevertheless, the first year’s month-by-month predictions are usually 90% true. Thereafter, slowly it becomes calculated guesses, but still planning provides the impetus, energy, and drive necessary for the business to achieve its objectives.

Before You Begin

Before writing your business plan, you need answers to the following core questions:

- What service or product does your business provide and what needs does it fill?
- Who are the potential customers for your product or service and why will they purchase it from you?
- How will you reach your potential customers?
- Where and how will you get the financial resources to start your business?

The clearer are your answers to these questions, the better will be your business plan. Be as detailed as possible. Writing the answers down provides a firm ground on which your business plan may be based.

Tentative Index of a Business Plan

[ Note: The index will change according to the information obtained/to be disclosed. Not all information may be disclosed. For example, if you are not applying for a loan, then the last three year's tax statements of principals need not be disclosed. Much other information can be added or deleted as per the market's demand and supply conditions with respect to your business.]

INDEX

1.0 Executive Summary

1.1 Description of business

1.2 Objectives

1.3 Mission

1.4 Marketing

1.5 Competition

1.6 Operating procedures

1.7 Personnel

1.8 Business insurance

1.9 Keys to success

2.0 Company Summary

2.1 Company Ownership

2.2 Company History (for ongoing companies) or Start-up Plan (for new companies).

2.3 Company Locations and Facilities

3.0 Products and Services

3.1 Product and Service Description

3.2 Competitive Comparison

3.3 Sales Literature

3.4 Sourcing and Fulfillment

3.5 Technology

3.6 Future Products and Services

4.0 Market Analysis Summary

4.1 Market Segmentation

4.2 Target Market Segment Strategy

4.2.1 Market Needs

4.2.2 Market Trends

4.2.3 Market Growth

4.3 Industry Analysis

4.3.1 Industry Participants

4.3.2 Distribution Patterns

4.3.3 Competition and Buying Patterns

4.3.4 Main Competitors

5.0 Strategy and Implementation Summary

5.1 Strategy Pyramids

5.2 Value Proposition

5.3 Competitive Edge

5.4 Marketing Strategy

5.4.1 Positioning Statements

5.4.2 Pricing Strategy

5.4.3 Promotion Strategy

5.4.4 Distribution Patterns

5.4.5 Marketing Programs

5.5 Sales Strategy

5.5.1 Sales Forecast

5.5.2 Sales Programs

5.6 Strategic Alliances

5.7 Milestones

6.0 Web Plan Summary

6.1 Website Marketing Strategy

6.2 Development Requirements

7.0 Management Summary

7.1 Organizational Structure

7.2 Management Team

7.3 Management Team Gaps

7.4 Personnel Plan

8.0 Financial Plan

8.1 Loan applications

8.2 Capital equipment and supply list

8.3 Important Assumptions

8.4 Key Financial Indicators

8.5 Break-even Analysis

8.6 Projected Profit and Loss

8.7 Projected Cash Flow

8.8 Projected Balance Sheet

8.9 Business Ratios

8.10 Long-term Plan

9.0 Supporting Documents

9.1 Tax returns of principals for last three years Personal financial statement (all banks have these forms)

9.2 For franchised businesses, a copy of franchise contract and all supporting documents provided by the franchisor

9.3 Copy of proposed lease or purchase agreement for building space

9.4 Copy of licenses and other legal documents

9.5 Copy of resumes of all principals

9.6 Copies of letters of intent from suppliers, etc.

Conclusion

A good business plan is imperative for any business be it small, medium, or big if it needs to survive in today’s tough business environment. Like a warrior sharpens his sword for 6 hours for a battle of 6 minutes, similarly a businessperson should take several days to prepare his business plan in order to survive for many years.

In the United States people read an average of thirty minutes’ worth of news per day. This readership supports a variety of news outlets, such as newspapers, magazines, and journals. Presently, the United States has the largest readership worldwide, and the largest number of newspapers, magazines, and journals.

Clearly, the savvy business owner would do well to advertise in print media. Some people suggest that digital media is a more modern option. Still, ignoring print media in favor of strictly online advertisement ignores the large circulation and great popularity of print media in the U.S.

Consider using print media as a part of your business marketing plan for the following reasons:

When an advertisement is published in print media, it does more than simply persuade the readership to purchase a product or service. It provides the business owner with a means for forming a strong corporate image with the publication’s readership. This aspect of print advertising is actually more essential than the more obvious goal of increasing customer base.

Print ads work well because they appeal to a reader’s emotions. The effective advertisement holds out the promise of betterment to a reader. This is accomplished via professional advertising design, including judicious use of color, layout, positioning, and language.

Print marketing professionals have an edge in that they can access readership surveys. These surveys gather data on readers of a publication, and allow marketers to more specifically target which techniques and strategies are most likely to be effective. They may offer incentives such as discounts or specials, or they may suggest to consumers that using a product or service will make them more cool or modern.

Print advertising also has the benefit of being tightly focused on an audience. For instance, a magazine that contains articles and information of interest and benefit to teen girls is going to be marketed to teen girls. Business owners whose goods and services are also marketed to teen girls would be wise to use this magazine for advertising.

Don’t listen to naysayers who suggest that print media is obsolete. They are wrong. Print advertisement is an excellent choice for urging a targeted selection of potential customers to buy your product or service.