Inside a Business Plan
As defined on the Idaho SBDC website, “a business plan precisely defines your business, identifies your goals and serves as your firm's résumé. It describes the products and services you will sell; the customers to whom you will sell them; the production, management and marketing activities needed to produce your offerings; and the projected profit or loss that will result from your efforts”. It not only serves as the skeleton of your business, but also outlines how the flesh will be added. Your business will be unique; however, there are topics that every plan should address.
The Small Business Administration provides the following list, in part, of sections or topics that should be included to have an effective business plan.
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The Business – This section should tell the reader why the business exists and what it is going to do to stay in existence. An internal analysis of the strengths and weaknesses of the business coupled with an external examination of the opportunities and threats that are at force in the business environment is appropriate for this section. An explanation of the overall strategy of the business and specifically the marketing strategy will also help the reader understand where the business is trying to go and how it intends to get there.
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Financial Data – The financial data should include past, present, and future views. A three-year summary will show how the business has previously performed. A current balance sheet and capital equipment list will define the business in this moment in time. Pro-forma income statements and cash flows will demonstrate the future potential of the business.
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Supporting Documents – Essentially the appendix of the plan, this should include previous tax filings, contract agreements, such as sales or leases, and résumés of the major principals.
Templates can be found that provide some framework, such as at BPlans.com. And of course, SBDC consultants are willing to lend a hand, but remember that templates are merely starting points and no one else has the insight you do to write your business plan. Lastly, remember business plans are a work in progress and are useful at any life stage of the business.
