What goes into a Business Plan

1. WHAT GOES INTO A
BUSINESS PLAN?
PREPARED BY: MR. LANCE MERCADO

2. GOALS
List and describe the basic elements
of a business plan.
Describe how to pull a business plan
together.

3. Create interest on your business
plan.
Having always had a strong interest in
electronics computers, Andy wanted to
start a business building customized
computers for business and personal
use. He knew that he would need about
$5,000 to get his business started. He
had $2,000 in savings that he could
use, but he was going to have to get
loan from family, friends, or the bank for
the remaining $3,000.

4. He sat down one night and threw
together a few facts about his business
and handwrote a list of items that he
needed to purchase. The cost of the
items on the list totaled $1,950. He
showed the information he had
complied to his parents, his
grandparents, his aunt and uncle, and
his friend. No one was interested in
making an investment in his business.

5. Work as a Team
Discuss why you think Andy could not
interest anyone in making an
investment in his business. How do you
think a formal business plan would
improve his chances of finding lenders?

6. Basic Elements of a Business
Plan
Every new business should have a
business plan, but not all business
plans are alike. The content of business
plan for small, home-based, single-
owner business will differ from a
business plan for a large corporation
with officers in many cities.

7. Basic Elements of a Business
Plan
But regardless of the business, all
business plans serve the same basic
purposes. They should also contain the
same three basic components –
introductory materials, the main body,
and the appendix.
The main body of the business plan will
contain the bulk of the information about
the business idea. It provides details on
how the business will succeed.

8. Basic Elements of a Business
Plan
A lot of time and effort will go into
writing the main body of the plan, and it
should be compiled before the other
components in the business plan.