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BUSINESS PLAN OUTLINE

I. Executive Summary (not to exceed one (1) page)

This critical one-pager grabs the reader's attention and summarizes your
business plan.

A. Company name, address, and phone number:

 Basic contact information for potential investors or anyone interested in

learning more about your business.

B. A brief description of the business, its products and services, the

customer problems they solve, and the company's competitive
advantage:

 Briefly explain what your company does; what specific products or

services do you offer? Explain the problems your business solves for your
target customers and what sets you apart from the competition (your
unique selling proposition).

C. A brief overview of the market for the products and services:

 Briefly describe your offerings' target market, size, and growth potential.
Are there any trends that favor your business?

D. A brief overview of the strategies that will make the company

successful:

 Outline your high-level plans for marketing, sales, and operations. How
will you convince your target market to buy from you? Include your
marketing and sales strategies.

E. A brief description of the managerial and technical experience of key

people:

 Investors want to know they're backing a capable team. Briefly introduce

yourself and your key personnel, highlighting relevant experience and
expertise that positions you for success.
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F. A brief statement of the sources of capital and how the money will be
used:

 If you're seeking funding, outline where the money will come from (loans,
investors, etc.) and how you plan to use the funds to operate and grow
the business. (e.g., product development, marketing, hiring).

II. Organizational Background

This section establishes your company's core identity and purpose.

 A. Vision:

Describe your aspirations for the future. What do you want your company to
become ultimately? It should be a concise and inspiring statement that
captures the essence of your long-term goals.

 B. Mission:

Define your company's primary purpose. What problem are you solving or need
are you fulfilling? How do you contribute to the market or society?

 C. Values Statement:

Outline the core principles that guide your company's decisions and actions.
What fundamental values shape your company culture and how you conduct
business?

III. Company Products and Services

This section dives deep into the details of what your company offers.

A. Product Strategy

1. Product or service features:

 List and describe the critical features of your products or services. What
functionality or benefits do they provide?

2. Customer benefits:

 Explain how your offerings address your customers' needs and pain
points. What problems do they solve, or what value do they create for
your target audience?
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3. Warranties and guarantees:

 Outline any warranties, guarantees, or return policies on your products

or services. Build trust and demonstrate your confidence in quality and
customer satisfaction.

4. Unique Selling Proposition (USP):

 Clearly define what makes your business stand out. What unique value
proposition sets you apart from competitors and attracts customers to
choose you?

B. Description of Production Process/Service Design (if applicable)

This section is only relevant if your business involves physical products or a

specific service delivery process

1. Raw materials (if applicable):

 Specify the materials or resources needed to produce your product.

2. Unit production costs (if applicable):

 Estimate the cost to produce each unit of your product. It helps

determine the pricing strategy and profit margins.

3. Production schedule (if applicable):

 Outline your production timeline, including lead times and capacity to

meet customer demand.

Note: If your business provides services, you can replace Section B

with details about your service delivery model. It could explain your
staffing structure, technology, or specific service delivery steps.

IV. Industry Profile and Overview

This section provides context about the industry you're operating in and the
broader environment that might impact your business.

A. Market analysis

1. Industry analysis:

 Define the specific industry your business falls under.

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 Describe the size and growth potential of the industry.

 Identify key trends and developments shaping the industry

landscape (e.g., technological advancements, regulatory changes,
and consumer preferences).

 Briefly discuss any significant industry challenges or barriers to

entry. (key players in the industry, including competitors and
potential partners.)

2. Environmental analysis:

 Analyze the external factors that could influence your

business. This includes factors like:

 Economic conditions (e.g., economic growth, inflation rates)

 Social and cultural trends (e.g., demographics, consumer

behavior)

 Political and legal landscape (e.g., government regulations,

tax policies)

 Technological advancements (e.g., how technology might

affect your industry)

B. Outlook for the Future

 Based on your market and environmental analysis, project the future

outlook for your industry.
 Is the sector expected to grow or decline?
 Are there any emerging trends or opportunities you can capitalize on?

V. Competitor analysis
Understanding your competition is crucial for developing a successful strategy.

A. Existing Competitors

1. Who are they?:

Identify your main competitors in the market. It could include established

businesses or new startups offering similar products or services.

2. Competitors' strengths:
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Analyze the strengths of your competitors. What do they do well? What are
their advantages regarding brand recognition, product features, pricing, or
customer service?

3. Competitors' weaknesses:

Identify any weaknesses in your competitors' offerings. Are there areas where
you can outperform them? This could be related to product features, pricing
strategies, customer service approaches, or a gap in the market they still need
to address.

B. Potential Competitors (companies that might enter the market)

1. Who are they?:

Identify any companies that have the potential to enter your market. It could be
existing companies in related industries or startups using disruptive
technologies.

2. Impact on the business if they enter:

Analyze the potential impact these new entrants could have on your business.
How would their presence affect your market share, pricing, or overall strategy?

VI. Business Strategy

This section outlines your roadmap for success, detailing your goals and how
you plan to achieve them in a competitive market.

A. Company Objectives

Define the specific objectives/goals you aim to achieve in different areas of your
business.

1. Marketing aspect:

What are your marketing goals? It could involve increasing brand awareness,
acquiring new customers, or driving sales growth.

2. Management aspect:

Set objectives for your management team. It might involve improving efficiency,
streamlining operations, or fostering team development.

3. Operational aspect:
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Define goals for your operational processes. This could involve optimizing
production costs, improving product quality, or achieving on-time delivery.

4. Financial aspect:

Set clear financial objectives. Examples include achieving a specific revenue

target, reaching profitability within a timeframe, or securing a certain level of
investment.

B. SWOT Analysis

Conduct a SWOT analysis to assess your internal strengths and weaknesses

and identify external opportunities and threats.

1. Strengths:

What are your company's internal strengths? This could involve your team's
expertise, unique product features, strong brand reputation, or efficient
operational processes.

2. Weaknesses:

Identify any internal weaknesses that could hinder your progress. This might
include limited resources, a need for brand awareness, or inefficiencies in
production or service delivery.

3. Opportunities:

What external opportunities can you leverage for growth? This could involve
new market trends, emerging technologies, potential partnerships, or changes
in regulations that benefit your business.

4. Threats:

Identify external threats that could pose challenges. This might include
economic downturns, increasing competition, changes in consumer preferences,
or potential disruptions in your supply chain.

C. Competitive Strategy

Outline your approach to gain a competitive advantage in the market. There

are three main strategies to consider:
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1. Cost leadership:

Aim to be the most cost-efficient producer in the market. This allows you to
offer competitive pricing and attract customers seeking the best value.

2. Differentiation:

Focus on creating unique products or services that stand out. This

differentiation could be based on features, quality, customer experience, or
brand image.

3. Focus:

Target a specific niche market within the broader industry. By specializing in a

particular customer segment or product category, you can cater to their needs
and build a strong reputation within that niche.

VII. Marketing Strategy

This section details your plan for reaching your target audience and promoting
your products or services.

A. Proposed Target Market

Define the specific group of customers you will focus your marketing efforts on.

1. Problem to be solved or benefit to be offered:

Identify the problem your product or service solves for your target market.
What pain points do you address, or what value do you create for them?

2. Demographic profile:

Describe the demographics of your ideal customer. This could include age,
income level, location, gender, education, occupation, etc.

3. Other significant customer characteristics:

Go beyond demographics and consider other relevant characteristics of your

target market. This might include their interests, buying habits, online
behavior, lifestyle choices, or media consumption habits.

B. Place Strategy
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This section outlines how you will deliver your product or service to your target
market.

1. How large is the market?:

Estimate the size of your target market. This helps you understand the
potential customer base you can reach.

2. Is it growing or shrinking? How fast?

Analyze whether your target market is growing or shrinking and at what

rate. This helps assess the future potential of your market.

C. Promotions Strategy

Outline your plan to generate awareness and interest in your product or service
among your target market.

1. Media used (reader, viewer, and listener profiles):

Identify the marketing channels you will use to reach your target audience.
Consider factors like the demographics and media consumption habits of your
ideal customer. This might include social media platforms, search engine
marketing, content marketing, email marketing, public relations, or influencer
marketing.

2. Plans for generating publicity:

Describe your specific tactics for generating buzz and positive press coverage
for your business. This could involve press releases, media outreach, social
media campaigns, or events.

D. Price Strategy

This section outlines your approach to pricing your products or services.

1. Product demand:

Consider the level of demand for your product or service in the market. Is there
high demand, or is it a niche market?

2. Comparison against competitors' prices:

Analyze your competitors' pricing strategies. This helps you determine a

competitive price point that aligns with your value proposition and target
market.
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VIII. Location and Layout

This section details the physical space required for your business operations.

A. Office and Plant Location (if applicable)

 Focus on decision-making factors, not specifics.

While you might have a preferred location, this section outlines the
criteria for your decision-making process.

Here are some factors to consider: Accessibility for customers and

employees

 Proximity to suppliers or distributors (if applicable)

 Availability of skilled labor (if applicable)

 Cost of rent or lease

 Local zoning regulations and permits

 Quality of infrastructure (transportation, utilities)

 Lease/rental rates (optional): If you have done preliminary research on

rental rates in your target location, you can mention the range here.
However, it's optional for the initial plan.

B. Buildings and Facilities

 Focus on functionality rather than detailed blueprints.

You can leave a detailed architectural plan here.

 Instead, describe the space you need to accommodate your

business operations. Consider the number of employees, meeting
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rooms, dedicated workspaces, and any specific requirements (e.g.,

IT infrastructure, storage space) For an office.

 For a manufacturing plant:

Describe the production process and the space needed for

equipment, raw materials, storage, and assembly lines.

 Layout plan (illustration) (optional):

If you have a basic sketch or drawing of your desired layout, you can
include it here. (e.g., production areas, office space, storage areas,
customer service areas). It is an excellent way to represent your space
needs visually, but it is optional at this initial planning stage.

Here are some additional details you may want to consider, depending on
your business type:

 Size requirements: Briefly mention your office and plant space's square
footage or size requirements.
 Accessibility: Discuss the importance of accessibility for your target
market, employees, and deliveries (e.g., close to public transportation
and ample parking).
 Amenities: If specific amenities are essential for your business
operations (e.g., high-speed internet, loading dock), mention them here.

IX. Description of the Management Team

This section highlights the key people behind your business and their
qualifications.

A. Project Originators, Promoters, and Managers

1. Business Proponents:

Detail the key individuals who originated the business idea, actively promote it,
and manage the day-to-day operations.

For each proponent, include the following information:

 Name and title:

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Provide their full name and the specific role they will hold within the company
(e.g., CEO, COO, Marketing Director).

 Relevant Experience:

Briefly outline their relevant work experience and educational background.

Highlight their skills and expertise that are crucial for the business's success.

 Contributions:

Describe their specific contributions to the project. It might include their role in
developing the business concept, securing funding, or building the team.

X. Internal Organization
This section outlines the legal structure and management hierarchy of your
business.

A. Form of Business Ownership

 Specify the legal structure you choose for your business. It could be a
sole proprietorship, partnership, limited liability company (LLC), or
corporation.
 Briefly explain why you chose this particular structure. Consider factors
like liability protection, tax implications, and ease of management.

B. Organizational Chart

 Include a visual representation of your company's organizational

structure. It can be a simple chart showing the reporting lines between
departments and key personnel.
 It should illustrate who reports to whom, highlighting the key decision-
makers and management roles.

XI. Financial Forecasts

This section presents your financial projections for the future of your business.
It demonstrates the economic viability of your business plan.

A. Statement of Assumptions

 Outline the key assumptions underlying your financial forecasts.

Include assumptions about market growth, sales volume, pricing
strategy, operating expenses, and the cost of goods sold.
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 Be transparent about the factors that could impact your financial

projections.

B. Projected Financial Statements

Here, you will present your financial forecasts in three main statements.

1. Projected statement of comprehensive income:

This forecast predicts your future revenue, expenses, and net income over a
specific period (e.g., the following three years).

2. Projected cash flow statement:

This forecast projects your future cash inflows and outflows, demonstrating
your ability to manage your cash flow and meet your financial obligations.

3. Projected statement of financial position (balance sheet):

This forecast predicts your future assets, liabilities, and shareholder equity at a
specific time.

C. Ratio analysis

Analyze your projected financial statements using key financial ratios.

1. Liquidity, solvency, activity, and profitability ratios: Calculate relevant

ratios to assess your business's financial health in different areas.

 Liquidity ratios measure your ability to meet short-term obligations (e.g.,

current ratio, quick ratio).
 Solvency ratios measure your ability to meet long-term obligations (e.g.,
debt-to-equity ratio).
 Activity ratios measure how efficiently you use your assets and resources
(e.g., inventory turnover ratio, accounts receivable turnover ratio).
 Profitability ratios measure your ability to generate a profit (e.g., gross
profit margin, net profit margin, return on equity).

2. Comparison of the ratio analysis results to industry averages:

Compare your calculated ratios to industry averages (which you can find
through financial publications or industry reports). It helps you understand
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how your business stacks up against competitors regarding economic

performance.

Note: Financial forecasting can be complex. Consider consulting with a

financial professional to assist you with this section, especially if you seek
funding for your business.

XI. Loan or Investment Proposal (if applicable)

Note: This section might only be relevant for some businesses. If you seek
funding, you'll need a separate loan or investment proposal tailored to your
needs.

However, within your business plan outline, you can include a brief section on:

A. Sources of Capital

If you need to raise capital to start or grow your business, outline the specific
sources of funding you are considering. It could include:

 Loan options:

Debt financing from banks, credit unions, or online lenders.

Specify the loan amount you are seeking and the repayment terms you
envision.

 Investment options:

Equity money might come from angel investors, venture capitalists, or crowdfu
nding sites.

Explain how much investment you seek and the percentage of ownership you
will offer.

 Personal investment:

Mention any personal funds you will be contributing to the business.

Additionally, you may want to include:

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 How the funds will be used: Briefly explain how you plan to utilize the
capital to achieve your business goals (e.g., purchasing equipment,
marketing campaigns, inventory).
 Financial projections: Briefly summarize your key financial projections (refer to
section XI of the outline) to demonstrate the potential profitability of your
business and your ability to repay any loans or provide a return on investment.

XIII. Appendices (supporting documentation not

limited to market survey results and other items)
The appendices section is where you can include any additional documents
that support the information presented in your business plan but would
disrupt the flow of the main body of the text. This could include:

 Market research reports

 Product brochures, prototypes, or specifications
 Resumes of essential personnel/Team resumes or CVs
 Letters of intent from potential partners or suppliers
 Detailed financial projections or calculations (if too lengthy for the main
body)
 Copies of permits or licenses, Legal documents (e.g., patents, trademarks)

Remember:

 Keep the appendices concise and relevant.

 Reference any appendices you include within the main body of your
business plan.

XIV. Bibliography (APA writing style guidelines)

The bibliography section lists the sources you used to gather information for
your business plan.

Here are some things to consider:

 Only include sources that you directly referenced in your plan.

 Use a consistent citation style (e.g., APA, MLA).

Note: Including a bibliography is optional and may only be necessary for some
business plans.
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