Tuesday, June 9, 2009

How To Write a Business Plan: What Should Be In Your Business Plan

Business plans written with the primary purpose of presenting the company to outsiders differ in format and presentation from a business plan developed as a management tool. While it would benefit the company and management to go through the efforts necessary to establish goals, objectives, and strategies, outsiders unfamiliar with not only the company, but also possibly the industry and products, require a different presentation. The emphasis of this type of presentation business plan is on selling the reader on the attributes of the company. A plan for strictly internal use is geared more toward defining specific, measurable performance targets and assigns individual responsibility for reaching those targets.

If you're looking for investors or applying for a loan, your plan is a marketing tool. It should be truthful but also convey a sense of excitement and stability. Investors are more interested in the future of the company and the getting a high return on their investment. Lenders are interested is the least risk possible.

Below is an outline of each segment of a business plan developed for presentation to potential investors or lenders. As you can see the length varies from 25 pages to 40 pages, not including the financial projections or the appendix.

Executive Summary 2-3 pages the executive summary is completed after the entire business plan has been written. Don't think you can take a short cut and come up with an executive summary first and then if anyone is interested write the business plan. Historical Perspective 2 pages Economic And Industry Environment 3-4 pages

PROFILE OF THE BUSINESS Business Model 1-2 pages The Product 1-2 pages The Market 3-5 pages Competitive Environment 3-5 pages Marketing 4-5 pages Management, Operations, Production, and Facilities 3-6 pages Current Ownership 1 page Strengths, Weaknesses, Risks, and Opportunities 1-2 pages

Request for Capital And Structure of the Transaction 1 page

Financial Section varies

Appendix varies

Planning Assumptions

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