Business Plans written with the primary purpose of presenting the company to outsiders differ in format and presentation from a business plan developed as a management tool. While it would benefit the company and management to go through the efforts necessary to establish goals, objectives, strategies and action plans defined near the end of this chapter, outsiders unfamiliar with not only the company, but also possibly the industry and products require a different presentation, with an emphasis on selling the reader on the attributes of the company. A plan for strictly internal use is geared more toward defining specific, measurable performance targets and assigns responsibility for reaching those targets.
The business plan document is often the first exposure an investor has to a company seeking financing, often even before talking to the entrepreneur on the phone or having a meeting. Because it makes the critical “first impression” for the company, a poorly prepared plan can be a reason for an investor to decline on the investment, and not take the time to ask for more information. While we all hear of stories about deals that were scratched out on the back of an envelope, after a brief meeting between a savvy entrepreneur and a multi-millionaire, the truth is: no business plan equals no capital.
The business plan template below can be used for an established company or for a start-up. Obviously a start-up company may not have an historical background, or the previous years’ financial information. There also may be some gaps in the management team as well.
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YOUR BUSINESS PLAN
Below is an outline of each segment of a business plan developed for presentation to potential investors or lenders.
EXECUTIVE SUMMARY
HISTORICAL PERSPECTIVE
ECONOMIC AND INDUSTRY ENVIRONMENT
PROFILE OF THE BUSINESS
Business Model
The Product
The Market
Competitive Environment
Marketing
Management, Operations, Production, and Facilities
Current Ownership
Strengths, Weaknesses, Risks, and Opportunities
STRUCTURE OF THE TRANSACTION
FINANCIAL SECTION
APPENDIX
Business plan templates are available on the internet in large numbers because they provides information about the businesses positive attributes which includes its legal requirements in case you want a loan, license and structure formation.
It is a common practice for companies to use a template because it is cost effective and easy to use.
There are different kinds of businesses and templates can give you a general idea about the way to organize your specific business plan.
The Business Plan Overview
In this section you need to provide an overview of your company.
You have to choose your industry and write a business plan in a logical sequence.
Adding examples and guidelines in each section will help you to write and understand what is needed in your plans for your business.
The Complete Business Summary
This section of the template should encourage you to write a complete summary of your business. It should not exceed more than a few lines or a paragraph or two.
But it should completely sum up your businesses ideas and purpose. Do not make it to long because people may lose interest so try to keep it short and sweet and to the point.
It can also include the current revenue size of your business and the required amount of funds from other sources.
The Executive Summary
This section of the template is usually written toward the beginning and it provides a summary of your companys’ direction and overview.
It is an integral part of your business plan and provides key elements.
The Management Team
Who is involved in your team?
How will they fulfill the needs and demands of your customers? What is the competency and experience of your selected team? What are the positive attributes they bring to your organization?