How to Write a New Business Plan

A well-written business plan is the key to obtaining financial backing, networking with associates, and recruiting. It is most effective when written by the management team, not outside consultants and not with the help of software (which will make the plan sound clichéd). Because so much depends on the plan it can be an intimidating document to write. Before writing, identify likely readers, compile accurate and persuasive information, and outline the plan in its entirety. Consider covering the suggested topics below in your business plan.

Instructions

1. Write about the company in the first section. Include background information, recent developments and plans for the future, as well as the company's mission and organizational structure.

2. Describe the members of the management team in the second section, providing career biographies and explaining their role in the company. If more members are needed and if the business will require the help of third-party consultants, mention that, too.

3. Provide an industry overview and define the company's market, the market size, and potential for the company within the market. Explain how buying decisions will be made at the company, the market's segmentation, your planned market position, and your defensive strategy against competitors.

4. Describe in detail the product or service your company will be selling: features, quality, components, deliverables, etc. If more research and development are needed, state that in this section, too, as well as production methods, costs, quality control, and potential regulatory issues.

5. In another section, explain how the company intends to sell what it produces (advertising and public relations), presenting to the reader the most cost-effective alternatives. Include a discussion of market research and a value proposition.

6. Provide financial forecasts in the next section by sharing the company's projected balance sheets and statements of cash flow and income. Each forecast must consistently reflect data stated in previous sections. When asking for money, include a funding request with the amount needed, an explanation for why it's needed, and a description of how the money will be used.

7. Include a conclusion that summarizes the business plan by mentioning information from each section. Because the reader is now familiar with the names of places, people, and ideas in your report, you may reference them in the conclusion.

8. Write the Executive Summary, which is the first section of the report and the most important: many readers will review the summary and then decide whether or not to read the business plan. It must be written last because it greatly condenses the plan's contents. Because the reader has not read the plan yet, keep the summary general and short.

Resources

• Detailed Advice about Each Business Plan Section