Simple Business Plan Outline

Executive Summary: This will be done last, it is just a one or two page synopsis of your business plan, specifically tailored to be read by investors or key stakeholders in your business.

Company Description: Give a background of the history of this business if existing, or if it is a start-up, a background of why you see the need for this in the marketplace. Answer the basic questions:

  • Why is there a need for this business in the marketplace?
  • What is your product or service?
  • Where will you be located?
  • When did you start or expect to start?
  • How do you deliver your product or service to your customers (are you online, retail, wholesale, delivery, mobile, office, etc.)?

Product or Service: Describe in greater detail what specifically you are selling. Think of this as a menu of all of your products and/or services. Remember, this is a business plan, so be specific about how much you are going to charge for each product line or service line and how much it costs you to provide these products or services (core business model).

Market Analysis: You need to know your market. Think specifically about who your customers are, what are their needs, how you can fulfill those needs, where they are, how they are having these needs currently fulfilled. If you are an existing business, profile your current customers and identify segments that you may be missing. Another good exercise to do in your market analysis is to analyze the lifetime value of a customer – how long will your average customer last and how much profit will they bring to your business.

Competition Analysis: Think of all your potential customers from your market analysis and think about how else they can have their needs met aside from with your business.

Marketing Strategy: How do you plan to let your customers know about your business? Be specific about methods you will use and how much marketing will cost your business.

Operations and Implementation: Try to think about your management responsibilities and overhead costs. What will your rent cost you? What types of insurance will you need? What are your utility needs? How will you keep your books? Try to envision a snapshot of your operations and what it will cost you to run your business on a day to day basis.

Management Team: Describe the organization (business structure) and the key management team members. Be honest about capabilities of all key members.

Exit Strategy: What are your goals and measures of success? What if things do not go as planned? Identify risks and mitigating factors, especially to protect investment capital, in a worst-case scenario.

Financial Analysis: Make sure to include at the very least:

    • 3 Years of Profit & Loss Projections
    • Next (or First) Year’s Cash Flow Statement (ProForma)
    • 3 Years of Balance Sheets
    • Breakeven Analysis
    • Start Up or Expansion Capital/Expense Worksheet

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