This document provides an overview of how to write an effective business plan in 3 sentences or less: The business plan should convince readers that the business can be profitable by answering key questions about products/services, customers, marketing, and financing in the executive summary and subsequent sections. An effective plan includes sections on the company, market, competition, operations, management, and financial projections. The executive summary is the most important part and should clearly and concisely explain the business concept to entice the reader to learn more.

1. Business Plan
Introduction
• Focus your thinking
• Establish realistic strategy
• Financing and other support
• Reaction by others
Four Questions
• What service or product does your business provide and what needs does it
fill?
• Who are the potential customers for your product or service and why will they
• purchase it from you?
• How will you reach your potential customers?
• Where will you get the financial resources to start your business?
Definition
Document that can convince the reader that the business can produce enough
revenue to make a satisfactory profit and therefore attractive as an investment
opportunity.
Many reasons to write one:
• BP should sell the writer/reader on the business:
– Writer: so that you can go out and do it,
– Reader: to invest in it
• Confidence of knowing the issues
• Improve chances of success
Many Purposes in Real Life
• Bank Financing
• Strategic alliances
• Large contracts
• Key employees
• Mergers and acquisitions
• Mgt team motivation
• New product launch

2. Principles of BP
– No right way: plans can differ
– Be creative but set a limit
– Concise and focused
– Captures energy and personality of business leader
– Include negatives and issues
– Spend some time on it
Sections of a Business Plan
• Cover Page: contact name and info
• Table of contents
• Executive summary
• Company description
• The market
• Competitive analysis
• Marketing & Sales plan
• Operation plan
• Management Structure
• Future developments
• Financials
The Executive Summary
– The single most important part of your business plan
– Need to explain business concept clearly & concisely in a way that leads
the reader to ask for more
– This is the first impression the reader will get about your company/project
– Divide into paragraphs that mirror the sections of your marketing plan
– Keep it brief
– Use bullets
– Include a small chart or graph if it helps clarify a point
– Use space to break-up text blocks

3. The Company: Past, present & future
– Basic factual details about your company
– The Executive summary creates a compelling case for your business's
success, this section fills in the specifics
– Provides information about company ownership, location, type of
company, milestones, products, industry status, funding.
Target Market Description
– Identify types of people / business most likely to be your customer.
Explain their needs
– Demography of target market
– Motivating factors for purchase decisions
– Market Size
– Market trends
The Competition
– Identify competition types – direct / indirect
– Identify your specific competitors
– Determine your competitor’s market share
– Define competitive positions
– Highlight your competitive edge
– Evaluate barriers to entry and potential future competitors
Marketing & Sales Plan
– Summarize your marketing message
– Describe your marketing vehicle
– Additional marketing & sales strategies
– Sales team description

4. Operations Plan
• Location & facilities
• Production & quality control
• Inventory control
• Supply & distribution
• Order fulfillment and customer service
• Equipment & technology
• Financial control systems
– Determine your key operations elements
– Highlight your operational advantage
– Address current / potential operational challenges
Management Structure
– Highlight key team members
– Predict future management needs
– Describe your staffing structure
– Identify Board Members, Advisors and Consultants
Future Development
– Define long term goals
– Establish future milestones
– Assess the risks
– Explore exit options
Financials
– Income Statement
– Cash-flow projections
– Balance Sheet
– Sources & use of funds
– Additional supporting financial statements
Marketing Plan
1. Executive summary
2. Environmental analysis
1. Marketing environment
2. Target market
3. Marketing objectives & performance
3. SWOT analysis
4. Marketing objectives
5. Marketing strategies
6. Marketing mix
7. Marketing implementation
8. Financials
9. Evaluation and control

5. Format & Layout
Choose a clear font:
• ‘Serif’ fonts for body – Garamond, Palatino, Times New Roman
• ‘Sans Serif’ fonts for headings – Arial, Franklin Gothic, Verdana
• Use no more than two fonts
• Be restrained in use of italics, Bold, underline
• Size 10 – 12 is best for body text & 12 – 14 for headings
Charts & Graphs
• Bar charts are useful for showing trends Pie charts are effective for depicting
market composition, etc.
• Pie charts are effective as indicators for market composition
Binders & Folders
• If you use business folders, chose a business color like black, blue or grey
• Have a clear cover sheet with the title page on top
Cover Sheets
• Company name
• Company logo
• Name address, phone number, e-mail
• Date
• Disclaimer
Use a cover letter when sending out a business plan
Web Sites
www.businessplans.org/businessplans.html
www.bplans.com/sp/businessplans.cfm
www.businessplanarchive.org/