How to Assemble a Business Plan

While similar in content, each business plan must be uniquely tailored to the nature and circumstances of the business.

Entrepreneurs with a new business idea often "jump right in" and start marketing, building or otherwise running the business without writing a formal business plan. While running the business may be more satisfying, writing a business plan is crucial to fleshing out your business concept and planning for a successful future. An old adage states: "To fail to plan is to plan to fail." And in today's competitive business climate, it's never been more true.

Instructions

1. Write a description of your business concept and the type of products or services you're offering. Include a mission statement, a description of your initial offerings and their competitive advantage. Also include any product research you've done, the business's proposed or established legal structure, and the estimated date for startup, along with a timeline of key startup events.

2. Write a market analysis that describes the industry you're entering and the scope of the opportunity for growth. List your target markets, demographics, the market research you've done, your likely competitors, and any market obstacles you'll need to overcome to succeed.

3. Describe the initial team that will operate the business. Include your principal participants' backgrounds and qualifications, any board members or business advisers you've identified, and the organizational structure the business will have. Also list how ownership of the business will be divided.

4. Highlight any critical risks the company will face to succeed. These risks might include implementation challenges or staff weaknesses, or outside risks like a sudden downturn in the market. Provide solutions to each risk, along with contingency plans that describe how you'll overcome them.

5. Explain specifically how you'll implement your plan to launch the business. Incorporate how you'll produce your product, what marketing actions you'll take, the customer support you'll provide, and what future product or service developments might arise. Include specific actions, rather than general statements, so this strategy can be followed when you're ready to launch.

6. Collect all financial information that relates to the business. Demonstrate how the business will perform financially, how much money startup will cost and when the business will begin to be profitable. Include a projection of your first year's performance by month and the next two years' projections by quarter. Also include a break-even analysis, statement of assets and a detailed accounting of the startup funds. Add any past financial information, as well.

7. Add an appendix to the plan that contains supporting documents -- research you've completed, copies of legal documents, competitor information, staff resumes and any marketing materials you have on hand.

8. Compose an executive summary of two to three pages that summarizes the plan. Include a snapshot of the business concept, the product to be offered, an overview of the market, the startup funds needed and the expected returns. Place this summary at the beginning of the plan.

9. Create a table of contents to show where each section of the plan can be found. Include separate entries for the various financial pages or reports. Place the table of contents in front of the executive summary. Add a cover that lists the business's name and the author.

References

• University of Akron Entrepreneurship Program: Major Parts in a Business Plan
• Business Plan Master: Writing A Business Plan: The Parts of a Business Plan
• Woman Owned: Parts of a Business Plan