"It's the process, not the product."

The greatest value of a business plan is in the process of involving your management team in a thorough examination of your business - the business model or concept, its purpose, its strategies and its plans for all the operational requirements to ensure success.

When completed, all the key players will be more knowledgeable of the issues, the opportunities, the risks, and the alternatives considered, before committing to the final plan.

Following is a suggested guideline of the layout and content for developing an effective Business Plan. It is a consolidation of best practices, based on our consulting and management experience plus input from a number of professional resources. It should be adapted to your specific business requirements, your objectives in doing the plan and the intended audience.

COVER PAGE:

Includes title, date, purpose, prepared by whom, confidentiality & non-conflict of interest statement, issued to whom, when and a document control number.

PURPOSE:

State your objectives for the Business Plan:

• Attract financing, key executives, customers or strategic partners?
• Document strategy and action plans for management participants?

1. Executive Summary (Maximum 2 pages, written last as a stand-alone document, may be offered for review prior to full disclosure of the business plan, convinces reader to go further, or not.)

• Business Concept, Strategic Plan and Objectives
• Current status relative to the market opportunity
• Key success factors, risks, expected results, timetable
• Financial situation and needs
• Reference to following sections for more detail

2. Concept and Business Opportunity (Describe the need being addressed, your concept and business model, how this approach is different and why it is likely to succeed.)

• Market need and current solutions available
• Business concept and product/service differentiation
• Initial market feedback

3. Mission statement (Generate missionaries! Why should others join your cause – have fun, make money, make a difference?)

• Clear, attractive objectives – who and what do you want to be?
• Statement of mission, vision, values
• Priorities, milestones and timetable

4. Market Analysis (Provide relevant, pertinent information to demonstrate your knowledge of and competence in this industry.)

• The overall market, recent changes
• Market segments and
• Target sectors and customers
• Customer characteristics, needs
• Buying and selling process

5. Competition (Demonstrate an awareness of competitors and your ability to compete successfully.)

• Industry overview, recent entries, new business models
• Nature of competition, from inside and outside the industry
• Primary competitors - relative strengths and weaknesses
• Competitive products/services, relative pricing, advantages, disadvantages
• Protection by patents, copyrights, barriers to entry
• Threats and risks, ability of competitors to respond, imitate or copy.

6. Strategic Plan (Describe your current status, starting point, direction, and plans to get there.)

• Company history & background – experience, resources
• Key competitive strengths & current weaknesses
• Business plan and strategy to leverage strengths, reduce weaknesses
• Action plan for implementing the strategy

7. Management team (Usually the most important factor in determining your success and in attracting staff and financing. Emphasize current strengths and your plan to fill in the gaps.)

• Key personnel, experience & credentials
• Staffing plan
• Organizational structure

8. Product & Service Offering (Consider the reader’s familiarity with the industry, avoid technical jargon, relate your offering to market needs and the competition.)

• Product/service description
• Positioning of products/services
• Tactical issues - product definition, pricing, packaging  
• Competitive evaluation of products/services
• Future products/services

9. Marketing and sales plan (Another key to success, too often neglected by owner/managers with strong product, technical, or operations backgrounds. Prove you have a plan that will be affordable and effective.)

• Marketing strategy, positioning, placement
• Sales tactics,distribution channels
• Advertising, promotions/incentives, publicity, public relations
• Trade shows, industry events and organizations

10. Operations plan (Describe the important issues and factors that will affect customer service perceptions and the costs related to capital investment and operations.)

11. Risk analysis (What can go wrong, what will you do about it?)

• Market risks out of your control – economic cycle, interest rates, exchange rates, regulations, trade restrictions, new technology, new competitors, changing demand
• Business risks to be managed – owner/shareholder disputes, key customer and supplier dependency, labour relations, staff turnover, employee competition or conflict of interest, new technology, new competitors, new business models.  

12. Financial plan (Convert all the preceding words into numbers, next year by month, then three-to-five years annually.)

• Summary of Assumptions and Commentary
• Starting Balance Sheet
• Profit and Loss Projections
• Cash Flow Projections
• Balance Sheet Projections
• Ratio Analysis, Estimated value of equity
• Financial needs
• Sources and uses of funds

 APPENDICES:

Add some personalisation and realism with biographies and photos of key executives, product photos, marketing literature, sample packaging, facility plans, press releases, relevant research documents, testimonial letters, etc.