Writing a Business Plan

If you are applying for financing, a business plan is essential. If not, a business plan is a valuable tool. Writing the plan will force you to consider the finances, operation, marketing, and competition of your business. The SBA, SCORE, your community college, and other small business support organizations have in depth explanations of each element of the plan. The outline with a brief description is here to get you started.

Cover sheet with your business name, address, and contact info.

1. Executive Summary
Write this last, but place it first in the document. This is a statement of purpose, with concise supporting analysis gleaned from the other topics below. Think long and hard about why you are going into business for yourself and what you have to offer. What is your mission?

2. The Industry
Explain your industry to someone who is not familiar with it. Identify trends, major players, and your niche within it.

3. Market Analysis
Describe the audience for your service and how you will fulfill a need. Include pertinent data in the form of charts and graphs if that will help comprehension. Is your market local, regional, national, or global?

4. Competitive Analysis
Research the other players in your market and identify ways that you will stand out from them.

5. Marketing Plan
Outline the ways in which you will reach your potential clients.

6. Management Plan
This will be mostly about you and your experience and education. You can include a résumé. Also include other resources you have to draw upon: subcontractors, colleagues, vendors, other professionals, mentors.

7. Operating Plan
List the physical equipment needed, your location of operation, what kind of suppliers you have lined up—all the nuts and bolts of day-to-day operation.

8. Financial Plan
Estimate all of your annual income and expenses for 3 years. If you are requesting a loan, do not forget to list loan payments as expenses. As a sole proprietor, you will also include your personal balance sheet and 2 years of tax forms in this section. This could be the single most important part of your plan. After going through the numbers you will know how much to charge per hour and how many hours you need to bill per day. You will know what it takes to break even, and what it takes to show a profit.

This is only a guideline. You can add other sections to the plan and craft it almost any way that best portrays your unique skills and your one-of-a-kind business. Many good books and websites are available with detailed information. For the simplest approach, look at the One Page Business Plan.