There are many resources on the Internet that can be sourced to find an outline or elements of a business plan. In addition there are also sites that provide an online template that one can complete. The big question, then, is which one to use.
We believe the right outline to use is the outline that will be acceptable to the target market of the business plan. Many years ago we assisted a client in drawing up a business plan. Lots of time and resources went into this process. When it was done we were asked to help present the plan to venture capitalists. To our surprise we were told that our format is not in line with their own guidelines. The results were that we were set back another two weeks.
In America most banks will accept a plan that is compiled based on the guidelines set out by the U.S. Small Business Administration. PaloAlto has also ensured that their business planning software was developed based on these guidelines.
In short the SBA’s guideline outlines the following nine areas that should be covered:
Executive Summary – a concise overview of the entire plan with a history of the company. Market Analysis – knowledge about the industry your business is in. Company Description – a high level look at how all of the different elements of your business fit together. Organization & Management – Organisational structure, ownership, profiles of the management team profiles, and the qualifications of the board of directors. Marketing & Sales Management – This outlines the process of how you will “create customers”. Service or Product Line – A description of what you are offering your customers stated in terms of the benefits it delivers. Funding Request – Statement of the funding you require. Financials – Including forecasted income statements, balance sheets, cash flow statements, and capital expenditure budgets. Appendix – Important information that creditors may ask for such as credit history, resumes of key managers, licenses, permits, patents etc.
In future articles we will delve a bit deeper into the various areas. In essence it is all about answering the following few questions after you have identified the audience for your business plan and their needs or requirements.
Who are we? Where are we now? Where do we want to be? How do we intend to get there? What do we need to achieve this?
As a first step you may try to find out what the requirements are of the people you want to present your plan to…
Happy planning. Make it a challenging, exciting and creative experience.
25Jun