Your business roadmap and foundation.
a good plan guides each stage of your business for starting & managing.
no right or wrong way to write a business plan. Choose a plan that meets your needs.
not permanent, update or change as needed.
Purpose
run
grow
structure
your business
Use
secure funding
new business partnerships
persuade
inform
Common Formats
lean format (one page)
informal
summarize key points
traditional business model (multi pages)
standard - detailed & formal
Traditional
1. Executive summary
Briefly tell your reader what your company is and why it will be successful.
Include
mission statement,
your product or service
basic information about your company’s leadership team, employees
location
Important - include financial information and high-level growth plans if asking for financing.
2. Company description
Go into detail about the problems your business solves and be specific for who to serve.
boast about your strengths
3. Market analysis
Competitive research will show you what other businesses are doing and their strengths.
industry outlook and target market
4. Organization and management
how your company will be structured and who will run it.
Describe the legal structure of your business.
Use an organizational chart to showcase your company's team and roles.
Show how each person's unique experience will contribute to the success of your venture.
SBA recommendation for money. Consider including resumes and CVs of key members of your team.
5. Service or product line
what you sell or what service you offer.
Explain how it benefits your customers and what the product lifecycle looks like.
Share your plans for intellectual property, like copyright or patent filings.
Explain in detail research and development for your service or product.
6. Marketing and sales
NOTE: no single way to approach a marketing strategy.
should evolve and change to fit your unique needs.
Goal - describe how you'll attract and retain customers.
You'll also describe how a sale will actually happen.
You'll refer to this section later when you make financial projections, thoroughly describe your complete marketing and sales strategies.
7. Funding request
If you're asking for funding, outline your funding requirements.
Goal - explain how much funds you’ll need and what you'll use it for up to the next five years
debt or equity, the terms you'd like applied, and the length of time your request will cover.
Give a detailed description. Always include a description of your future strategic financial plans, like paying off debt or selling your business.
8. Financial projections
Goal: convince your business is stable and will be a financial success.
Provide a prospective financial outlook.
Include forecasted income statements, balance sheets, cash flow statements, and capital expenditure budgets.
use graphs and charts
For the first year, use quarterly — or even monthly — projections.
Make sure to clearly explain your projections, and match them to your funding requests.
9. Appendix
provide supporting documents or other materials that were specially requested.
SBA EXAMPLE, I used.
Try a lean startup format, if
explain or start your business quickly
simple business idea
plan to regularly change & refine your business plan.
Lean startup formats
charts that use only a handful of elements to describe your company’s value proposition, infrastructure, customers, and finances.
useful for tradeoffs and fundamental facts about your company.
There are different ways to develop a lean startup template. Search the web to find free templates to build your business plan.
nine components of a model business plan:
1. Key partnerships
2. Key activities
List the ways your business will gain a competitive advantage.
Highlight things like selling direct to consumers, or using technology to tap into the sharing economy
3. Key resources
List any resource you’ll leverage to create value for your customer.
could include staff, capital, or intellectual property.
4. Value proposition
the unique value your company brings to the industry.
clear & compelling statement
5. Customer relationships
how customers will interact with your business.
automated or personal?
In person or online?
Think about the customer experience from start to finish.
6. Customer segments
Be specific when you name your target market.
have a clear sense of whom your business will serve.
7. Channels
List the ways you’ll talk to your customers.
8. Cost structure
reducing cost or maximizing value? Define, list the most significant costs.
9. Revenue streams
how your company will actually make money. If multiple revenue streams, list them all.
Example - SBA
Don’t forget to leverage business resources that might be available to women, veterans, Native Americans, and HUBZone businesses.
