Write a Winning Business Plan

Standard Business Plan Format

The form of every good business plan, although not set in stone, tends to run along the same basic lines, containing the following key sections:

Cover page. The cover page should be professional and informative and should contain an appropriate confidentiality legend.

Executive summary. The executive summary is the introduction to your business plan and the most vital section. Although it comes first, you generally write it last because it summarizes the entire plan. Effective summaries generally cover:

• The company's origins.
• The product or service and its uniqueness or competitive advantage.
• The company's goals.
• The market potential for the product or service.
• A three- to five-year summary of key financial forecasts, especially sales and profit/loss. For new businesses, do some market research and make realistic assumptions about how your business can compete.
• The management team and its track record.
• The financing required to grow the business.
• The exit strategy.

The company description. This should convey a sense of the history of the company, as well as its goals. You should also include a summary of the company's principal objectives — both long-term and realistic interim goals.

Management. The management section of the plan identifies key members of the management team, describes their individual responsibilities and establishes their relevant experience and accomplishments. Include resumes that stress accomplishments and relevant track records in an appendix.

The product. If the company is selling a product, this section describes what the product is or will be and shows why it can penetrate the existing or developing market. If the product is still under development, discuss in detail where the project stands and what remains to bring it to market.

Investors are typically not interested in a one-product company. You should therefore discuss logical extensions of the company's product line and future enhancements in the product section.

The market. You must convince prospective investors that the company's market is large, growing, and receptive to your products or services. If the market is small or stagnating, investors are less likely to invest. Appendices can include more detailed market information.

Competition. The competition section of the plan identifies competing products and technology. Compare your product or service with the competition. How will your price or quality be different? What will make it successful?

Marketing. The marketing section of the business plan should describe the company's marketing plan and strategy in as much detail as possible.