How to Create a Detailed Business Plan

This is a format that most financial institutions and professional firms want to see.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Pen
• Paper
• organization
• computer
• Open Mind

1. 1. Cover Page
   First, remember that the business plan is a clearly recognizable type of document, and your audience will have some expectations with respect to style and contents. Just as your teachers in school expected you to conform to certain standards, the people who will look at your business plan will have certain expectations.
2. 2. Executive Summary
   This is arguably the most important single part of your document. It provides a high-level overview of the entire plan that emphasizes the factors that you believe will lead to success.
3. 3. Table of Contents
   This identifies your business and makes it easy for readers to find and examine particular documents.
4. 4. Business Structure
   This should include:
   • Description of Business
   • Business Organization
   • Management Team
   • Location
5. 5. Market
   This Section of your Business Plan should include:
   • Product/Service
   • Market Trends
   • Target Market
   • Competition
   • Competitive Advantage
   • Market Share Estimates
   This section of your report is very important. Research should be done in order to be successful!
6. 6. Marketing & Sales Strategy
   • Pricing and Positioning
   • Sales
   • Advertising and Promotion
7. 7. Operating Requirements
   • Production of the Product/Service
   • Staffing and Employees
   • Management and Administrative Support
   • Regulatory Requirements
8. 8. The Financial Plan
   • Forecasted Startup Budget
   • Forecasted Break-Even Analysis
   • Forecasted Twelve Month Cash Flow
   • Forecasted Five Year Cash Flow Analysis
   • Forecasted Five Year Income Statement
   • Forecasted Five Year Balance Sheet
9. 9. The Sources and Uses of Funds
   • Sources and Uses of Funds Statement
   • Personal Financial Statement
10. 10. Analysis of the Risks and Rewards
    • Risk Analysis
    • Strategies to Address Risks
    This is where you need to address possible risks, but also give reasons on how you will overcome any possible (known/unknown) obstacles.
11. 11. Attachments
    • Direct Competitor Analysis
    • Labor Force Profile
    • Startup 12 Month Cash Flow Projection
    • Startup Budget Assumptions
    • 12 Month Cash Flow Projection Assumptions
    • Break-Even Analysis of Sales (Monthly & Annually)
    • 5 Year Cash Flow Statement
    • Assumptions Used in 5 Year Financial Projections
    • 5 Year Income Statement
    • 5 Year Balance Sheet
    • Personal Financial Statement
    • Equipment List
    This are the fine details that you may want to research and include. This shows how, when, where, and how your new business venture will succeed.

Tips & Warnings

• Research. research. research
• Not all business models are the same - so don't be afraid to have an edge!
• Look at competitors
• Market research and think like a customer
• Write down every idea
• There are NO quick fixes to a truly complete business plan other than preparation and research