Elements of a Business Plan

A documented business plan for starting and runningUse the strategic summary to showcase your
your business is critical for success. A plan that iscompetitive advantage. Explain your marketing, pricing,
detailed and organized will encourage investment,distribution and sales strategies in this section. Be sure
promote growth, and provide a map for you to follow.to include information about any strategic alliances you
There is no single method to preparing a business plan.have developed.
Each plan should be tailored to the size and needs ofManagement Summary
the individual company. However, there are someUse the management summary to introduce your
basic elements that are common to all business plans.management team and explain your organizational
All business plans should incorporate the followingstructure. Include a description of your personnel plan.
elements.Financial Plan
Executive SummaryPotential investors or lenders will want to know the
The executive summary should include a narrative ondetails of your financial plan. Include your sales
your business objectives. Include your missionforecast, break-even Analysis, pro-forma profit and
statement in this section.loss Statement, pro-forma balance sheet, pro-forma
Company Summarycash flow statement, your key financial indicators and
The company summary should include informationthe basis for your assumptions.
about company ownership and structure. A briefSupporting Documentation
explanation of the company's history or start-up planAdd a section for your supporting documentation.
should also be included in this section.Supporting documentation should include the tax
Products and Servicesreturns of the principals for the last three years,
Describe the products and services you offer. Includepersonal financial statements for the principals, copies
a competitive comparison with others in the market.of contracts (franchise agreement, building lease, etc.),
Explain the sourcing and fulfillment channels you havecopies of business licenses, professional profiles of the
established.principals, copies of Letters of Intent from customers
Market Analysis Summaryor suppliers and copies of other legal documents.
The market analysis summary should include marketFor additional information or assistance regarding
needs, trends and growth potential. Provide informationbusiness plans, contact your local Chamber of
about the industry including industry participants, buyingCommerce, the U. S. Small Business Administration,
patterns and primary competitors.your Certified Public Accountant or a business
Strategic Summaryconsultant.