A Standard Business Plan Outline

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A Standard Business Plan Outline

by Tim Berry

April 22, 2003

There are predictable contents of a standard business plan. For example, a


business plan normally starts with an Executive Summary, which should be
concise and interesting. People almost always expect to see sections covering
the Company, the Market, the Product, the Management Team, Strategy,
Implementation and Financial Analysis.

If you have the main components, the order doesn’t matter that much, but here’s
the order I suggest.

1. Executive Summary: Write this last. It’s just a page or two of highlights.
2. Company Description: Legal establishment, history, start-up plans, etc.
3. Product or Service: Describe what you’re selling. Focus on customer
benefits.
4. Market Analysis: You need to know your market, customer needs, where
they are, how to reach them, etc.
5. Strategy and Implementation: Be specific. Include management
responsibilities with dates and budgets. Make sure you can track results.
6. Web Plan Summary: For e-commerce, include disucssion of website,
development costs, operations, sales and marketing strategies.
7. Management Team: Describe the organization and the key management
team members.
8. Financial Analysis: Make sure to include at the very least your projected
Profit and Loss and Cash Flow tables.

I don’t recommend developing the plan in the same order you present it as a
finished document. For example, although the Executive Summary obviously
comes as the first section of a business plan, I recommend writing it after
everything else is done. It will appear first, but you write it last.

Standard Tables and Charts

There are also some business tables and charts that are normally expected in a
standard business plan.

Cash flow is the single most important numerical analysis in a plan, and should
never be missing. Most plans will also have Sales Forecast and Profit and Loss
statements. I believe they should also have separate Personnel listings,
projected Balance sheet, projected Business Ratios, and Market Analysis tables.
I also believe that every plan should include bar charts and pie charts to illustrate
the numbers.

Expanded Plan Outline


1.0 Executive Summary
1.1 Objectives
1.2 Mission
1.3 Keys to Success
2.0 Company Summary
2.1 Company Ownership
2.2 Company History (for ongoing companies) or
Start-up Plan (for new companies).
2.3 Company Locations and Facilities
3.0 Products and Services
3.1 Product and Service Description
3.2 Competitive Comparison
3.3 Sales Literature
3.4 Sourcing and Fulfillment
3.5 Technology
3.6 Future Products and Services
4.0 Market Analysis Summary
4.1 Market Segmentation
4.2 Target Market Segment Strategy
4.2.1 Market Needs
4.2.2 Market Trends
4.2.3 Market Growth
4.3 Industry Analysis
4.3.1 Industry Participants
4.3.2 Distribution Patterns
4.3.3 Competition and Buying Patterns
4.3.4 Main Competitors

5.0 Strategy and Implementation Summary


5.1 Strategy Pyramids
5.2 Value Proposition
5.3 Competitive Edge
5.4 Marketing Strategy
5.4.1 Positioning Statements
5.4.2 Pricing Strategy
5.4.3 Promotion Strategy
5.4.4 Distribution Patterns
5.4.5 Marketing Programs
5.5 Sales Strategy
5.5.1 Sales Forecast
5.5.2 Sales Programs
5.6 Strategic Alliances
5.7 Milestones
6.0 Web Plan Summary
6.1 Website Marketing Strategy
6.2 Development Requirements
7.0 Management Summary
7.1 Organizational Structure
7.2 Management Team
7.3 Management Team Gaps
7.4 Personnel Plan
8.0 Financial Plan
8.1 Important Assumptions
8.2 Key Financial Indicators
8.3 Break-even Analysis
8.4 Projected Profit and Loss
8.5 Projected Cash Flow
8.6 Projected Balance Sheet
8.7 Business Ratios
8.8 Long-term Plan

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