Professional Documents
Culture Documents
Business Plan
Business Plan
Business Plan
I. Executive Summary
This is your five-minute elevator pitch. It may include, company background, market
opportunity, management overviews, competitive advantages, and financial highlights. It
is easier to write the detailed sections first and then extract the cream to create the
executive summary.
Setting strong business objectives lets you clearly define what your business needs to
succeed and helps to rally teams around a shared goal. If you are seeking a funding
opportunity, objectives also you make a case for funding and the impact the investment
will make.
It’s best to write SMART objectives (specific, measurable, attainable, realistic, and time-
based). The purpose of SMART objectives is to give your teams a sense of a unified
purpose and direction that can be tracked over time.
Provide bios of your company executives and managers and explain how their expertise
will help you meet business goals. Investors need to evaluate risk, and often, a
management team with lots of experience may lower perceived risk.
Flesh out this section to provide a snapshot of how your business operates. Develop brief
bios for each person who leads your company, and list each person out in a bulleted list.
V. Financial Analysis
To write the financial section, you first need to gather some information. Keep in mind
that the information you gather depends on whether you have historical financial
information or if you’re a brand-new startup.
Your financial section should detail: business expenses, financial projections, financial
statements, break-even point, funding requests and exit strategy.
1. Business Expenses
Whether you’ve been in business for one day or 10 years, you have expenses. These
expenses might simply be startup costs for new businesses or fixed and variable costs for
veteran businesses.
Take a look at some common business expenses you may need to include in the financial
section of business plan:
• Licenses and permits
• Cost of goods sold
• Rent or mortgage payments
• Payroll costs (e.g., salaries and taxes)
• Utilities
• Insurance
• Equipment
• Supplies
• Advertising
Write down each type of expense and amount you currently have as well as expenses you
predict you’ll have. Use a consistent time period (e.g., monthly costs).
Indicate which expenses are fixed (unchanging month-to-month) and which are variable
(subject to changes).
2. Financial Projections
How much do you anticipate earning from sales each month?
If you operate an existing business, you can look at previous monthly revenue to make
an educated estimate. Take factors into consideration, like seasonality and economic ups
and downs, when basing projections on previous cash flow.
Coming up with your financial projections may be a bit trickier if you are a startup. After
all, you have nothing to go off of. Come up with a reasonable monthly goal based on
things like your industry, competitors, and the market. Hint: Look at your market analysis
section of the business plan for guidance.
3. Financial Statements
A financial statement details your business’s finances. The three main types of financial
statements are income statements, cash flow statements, and balance sheets.
Income statements summarize your business’s income and expenses during a period of
time (e.g., a month). This document shows whether your business had a net profit or loss
during that time period.
Cash flow statements break down your business’s incoming and outgoing money. This
document details whether your company has enough cash on hand to cover expenses.
The balance sheet summarizes your business’s assets, liabilities, and equity. Balance
sheets help with debt management and business growth decisions.
If you run a startup, you can create “pro forma financial statements,” which are
statements based on projections.
If you’ve been in business for a bit, you should have financial statements in your records.
You can include these in your business plan. And, include forecasted financial
statements.
4. Break-even Point
Potential investors want to know when your business will reach its break-even point. The
break-even point is when your business’s sales equal its expenses.
Estimate when your company will reach its break-even point and detail it in the financial
section of business plan.
5. Funding Requests
If you’re looking for financing, detail your funding request here. Include how much you
are looking for, list ideal terms (e.g., 10-year loan or 15% equity), and how long your
request will cover.
Remember to discuss why you are requesting money and what you plan on using the
money for (e.g., equipment).
Back up your funding request by emphasizing your financial projections.
6. Exit Strategy
Last but not least, your financial section should also discuss your business’s exit strategy.
An exit strategy is a plan that outlines what you’ll do if you need to sell or close your
business, retire, etc.
Investors and lenders want to know how their investment or loan is protected if your
business doesn’t make it. The exit strategy does just that. It explains how your business
will make ends meet even if it doesn’t make it.
There’s a lot that goes into a full competitive analysis, from tracking a business’s
organizational structure to its pricing model.
Detailing your products and services highlights your company’s value and demonstrates
its competitive advantage over other businesses. This section helps to understand what
niche your business offerings fill.
VIII. Marketing Plan
Your marketing plan, also called a marketing strategy, is a detailed view of how you'll
reach new customers with information on your products or services.
Spell out your market analysis and describe your marketing strategy, including sales
forecasts, deadlines and milestones, advertising, public relations and how you stack up
against your competition.
Outline the ways you'll market your products or services with a simple bulleted list. Be
sure to address:
• Marketing budget
• Your company’s marketing channels, like email and social media
• Promotional efforts, like special discounts or offers
• Advertising, like Google ads
• Printed materials, like flyers or business cards