BUSINESS PLANNING OUTLINE
I. EXECUTIVE SUMMARY
- what is the "essence" of the business
- what are the strengths/weaknesses
- what needs (financial?) exist
II. THE BUSINESS
A. DESCRIPTION AND HISTORY
- what is unique about your business?
- why did it start?
- what is the background of the principals?
B. THE INDUSTRY
- what is the nature of the industry?
- is it growing? shrinking? changing in emphasis?
- statistics (trade information) useful here
C. BUSINESS STRATEGY
- how will you set yourself apart?
- what business moves are important this year? future years? timetable is useful here
D. APPLICATION OF NEW CAPITAL
- if financing request included in plan, what will it be used for?
- how will new money help achieve goals?
III. THE PRODUCTS
A. CURRENT PRODUCTS
- describe current product lines
B. FUTURE PRODUCTS
- describe planned product introductions, if any
C. RESEARCH AND DEVELOPMENT
- discuss how new product offerings will be found
IV. MARKET RESEARCH AND EVALUATION
A. CUSTOMERS
- who are they? (age, demographics, income, etc.)
- why do they buy from you?
B. COMPETITION
- identify competition by industry
- identify specific competitors
- what are strengths/weaknesses of competition?
- how have you addressed competition?
V. MARKETING PLAN
A. MARKET STRATEGY; PRICING
- what is your niche in the market?
- explain pricing system
B. SALES STRATEGY
- what sales methods are used?
- how will they help you to achieve your goals?
C. ADVERTISING AND PROMOTION
- what methods will be used?
- why do you think they will work?
VI. OPERATIONAL STRATEGY
A. STRATEGY AND PLANNING
- how are you/will you get organized?
B. STAFFING REQUIREMENTS
- what needs do you/will you have?
C. TIMETABLE
- when will critical operations decisions/actions take place?
VII. MANAGEMENT
A. ORGANIZATIONAL STRUCTURE, ROLES AND RESPONSIBILITY
- describe structure (use chart if large business)
- discuss key managers and their backgrounds/roles
B. BOARD OF DIRECTORS
- describe (if applicable)
C. PROFESSIONAL SERVICES
- who are key advisors?
VIII. FINANCIAL DATA
A. HISTORICAL FINANCIAL ANALYSIS
- three years year-end profit and loss and balance sheets, current interim statement
B. PRO-FORMA BALANCE SHEET AND INCOME STATEMENTS
- projections for three years
C. PRO-FORMA CASH FLOW
- optional for existing business, critical for startup
D. SUMMARY OF ASSUMPTIONS
- line by line description of all assumptions behind financial projections