The business plan is critical in launching a new project. It is a comprehensive, well-written, and well-organized document that will guide the entrepreneur to raise necessary capital and financing.
The plan’s scope will depend on who reads it, the size of the business, and the specific industry for which the venture is envisioned. The business plan may be read by employees, investors, lenders, suppliers, customers, and consultants.
This article outlines the standard topics covered across all business plans.
Outline of a Business Plan
- Introductory page and the executive summary
The introductory page bears the name and address of the business. It identifies the nature and financing need of the business and the statement of confidentiality of the report. While the executive summary comprises two to three pages summarizing the complete business plan.
- Industry and environmental analysis
This section will elaborate on future outlook and trends, analysis of competitors, market segmentation, and industry and market forecasts. The objective of environmental analysis is to assess external uncontrollable variables that may impact the business plan. Digital marketing agency Sacramento and digital marketing agency Los Angeles provide valuable insight to their clients in such analysis.
- Description of the venture
The section provides a complete overview of the product(s), service (s), and operations of a new venture. It also describes the size of the business, the necessary equipment, and the staff.
- Production Plan
The production plan provides details on how the product (s) will be manufactured. It includes information about the manufacturing process, physical plant, Machinery, equipment (if any) and, how raw material will be arranged.
- Operations Plan
This section goes beyond the manufacturing process (if there is any) and discusses the flow of goods and services from production to the customer. It might include storage of manufactured products, shipping, inventory control procedures and, customer support services.
- Marketing Plan
The marketing plan describes market conditions and strategy related to how the product(s) and service(s) will be priced, distributed, and promoted. Agencies like Digital marketing agency Sacramento and digital marketing agency Los Angeles aim to help entrepreneurs in their ventures and help develop a marketing strategy and plans.
- Organizational Plan
An organizational plan describes business and ownership (sole proprietorship, partnership or corporation/company, etc.). It also describes the line of authority and responsibility of members of the new venture.
- Assessment of risk
The assessment of risk section will identify potential hazards and alternative strategies to meet business plan goals and objectives.
- Financial Plan
The financial plan forecasts financial data that determine economic feasibility and necessary financial investment commitment. It includes assumptions, pro forma income statement, cash flow projections, pro forma balance sheet, break-even analysis and sources and applications of funds, etc.
It generally contains any backup material that is not necessary for the text of the document. Reference to any of the documents in the appendix should be made in the plan itself.