Developing A Business Plan

A business plan is a guide for how a company will achieve its goals. For anyone starting a business, building a business plan is a vital first step. It’s a written document that serves as a roadmap, defining the marketing, financial and operational objectives, and the plan for achieving your goals. This is all crucial information to have at the ready when seeking investors or obtaining financing from a bank.

5 core questions addressed by your business plan

At the heart of all business plans are at least five common sections that address the core questions that face all new start-ups. We recommend proceeding through these sections in order, making sure that you can complete each step before proceeding to the next. For example, if the market feasibility proves to be negative, then there is no need to proceed to developing financials.

I. Description of the business and industry

• What is it you propose to do?
• Is it completely new or is it an organized industry?
  

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2. Market Feasibility Analysis

• How many people want this? (Request a demographic or consumer spending report)
• How many people are providing it? (Request a competitor report)
  

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3. Financials (Contact for FSBDC for assistance)

• What are my fixed and variable expenses?
• How much do I have to make to break even?
• Can I make a profit?

4. Marketing Pan

• What is the profile of my customers?
• Where are they?
• Where do they congregate?
  
• Is the market growing or shrinking?
• Why would customers pick my business over everyone else?

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5. Documentation of Experience

• What is the most cost effective way of reaching them?
• What is their motivation and how do I work that into my message?
  
• What experience does the management team have in the industry? In business?
• In the specialized areas of sales, accounting, strategy, operations, organization building.
  

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BUSINESS PLAN Outline

I. Cover Sheet

 II. Statement of Purpose

 III. Table of Contents

 IV. The Business
          A. Description of business
          B. Marketing
          C. Competition
          D. Operating procedures-Schedule a professional consultation
          E. Personnel-Schedule a professional consultation
          F. Business insurance
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V. Financial Data (Contact the FSBDC)
          A. Loan applications
          B. Capital equipment and supply list
          C. Balance sheet
          D. Breakeven analysis
          E. Pro-forma income projections (profit & loss statements)
                    1. Three-year summary
                    2. Detail by month, first year
                    3. Detail by quarters, second and third years
                    4. Assumptions upon which projections were based
          F. Pro-forma cash flow

​VI. Supporting Documents
          A. Tax returns of principals for last three years
          B. Personal financial statement (all financial institutions have these forms)
          C. For franchised businesses, a copy of franchise contract and all supporting documents provided by the franchisor
          D. Copy of proposed lease or purchase agreement for building space
          E. Copy of licenses and other legal documents
          F. Copy of resumes of all principals
          G. Copies of letters of intent from suppliers, etc.
Adapted from www.sba.gov

SEE A SAMPLE BUSINESS PLAN

Business Plan Workbook