How to Read a Business Plan
A business plan is a document that outlines every aspect, and pre-planning, of a business. It includes a budget, marketing strategies, goals and operations information. To read and fully understand a business plan, you need to read it from the start and absorb all of the information presented. You also need to understand the purpose of the business to help you understand the business plan. Before you dive into the content, read the index and executive summary a couple of times to get an overall understanding of the plan.
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Instructions
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Read the "Index" page and the "Executive Summary" section. These two pages will give you a good understanding of the content of the business plan. The "Index" section will give you a brief overview of headings, while the summary will discuss the key points of the business plan, including goals, purpose, company profile and financial structure.
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Find the header that describes the business profile. This section will provide you with information about the business, its mission, goals, inspiration, products, services and the demands of the products or services being sold. This section will also explain the history of the company.
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3
Read the marketing and promotion section of the business plan. This section explains the marketing plans, strategies and methods that will be implemented by the business to reach the selected target market. You can also read about customer profiles and different methods of promotion.
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Read through the roles section of the business plan to learn about the running and management of the business. This section will identify the key roles and leaders, their responsibilities, who work for them and how the business will run with key players. If investors or lenders play a role in the business, they will be listed here.
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Find the operations section of the business plan to learn about how the operations function in the business. Key players and their responsibilities will be identified here. In relation to the roles, the operations section will show how these roles interact with different parts of the business. For example, the marketing director's job will be showed in terms of how the tasks influence the financial department. This section brings all of the departments together in one place to show how the business operates in full circle.
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Read through the risks and solutions provided in the business plan. This section discusses potential risks or dangers to the business, such as dropping of sponsors, failing equipment or lack of employees. For each risk, there will be a solution, and a description of when and how the solution will be implemented.
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Read through the budget and finance section to understand where the money is coming from, and how it is spent. The more detailed the section, the better the financial planning. This section will outline what money is required to run and operate the business, such as fixed expenses like rent and utilities, along with flexible expenses such as marketing solutions. It will also show how the money will be spent within the next three years, and how much the company needs to make to survive.
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Find the appendix in the back of the business plan. Anything related to the business that does not fall into the categories mentioned above is placed here. This can include permits, licenses, tax information and recommendation letters.
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