COMPONENTS/ELEMENTS/CONTENTS OF A BUSINESS PLAN

 The contents of a business plan vary tremendously, depending upon the type of
business, the expertise of the entrepreneur, who the plan is aimed at and how
much time is spent researching the plan.

 However, regardless the specific format used an effective plan should include
at least the following
1. Cover sheet
2. Table of contents
3. Executive summary
4. Description of The Business
5. Ownership and Management structure
6. Marketing Plan
7. Production/Operational Plan
8. Financial Plan/Analysis
9. Milestone schedule
10. Appendix

1. Cover Sheet

On the cover sheet you should include identifying information so that readers will
immediately know the business name, address, phone numbers, names and titles of the
principals (owners), and the date the Plan was prepared.

2. Table of Contents

Because the table of contents provides the reader an overview of what is

contained in the plan itself, it should be written and presented concisely in outline
form, using numerical and alphabetical designators for headings and subheadings.

3. Executive Summary

It is the most important part of the business plan. It should be designed to

motivate the reader to go on to the other section of the plan. It should convey a
sense of commitment, challenge, plausibility, credibility and integrity.

It can include:

 Major aims and objectives

 Marketing strategy
 Financial projections
 Financial requirements
 Current business position:
 Legal form, when formed, principal owners and key
personnel.
 Major achievements.

NB Executive summary is written last, after the rest of the plan

has been developed and should just be that – a summary –so
keep it short.

4. Description of the Business

Include the following :

a) Introduction

 Relevant brief history and background of the proposed business

 How the idea for the business original and what has been done to
develop the idea up to this point.
 Owners and manager and their experiences
 Products – capitalization/sources of funds
 Brief outline of success and achievement
 Date or proposed date for commencement
 Name of business and trading name
 Legal identity/legal form
 Industry that it fall under
 location - business addresses
 SWOT Analysis

5. Ownership and Management Structure

 Describe the owners including those you identified by name and title
above
 Give more detail about their experience, qualifications
and expertise.
 Describe your management team, along with their abilities, training and
experience.
 Draw an organisation Chart
 Draw a table showing name, position, qualifications and experiences,
duties and responsibilities of managers and employees.
 Include organisational structure, including employee policies and
procedures.

6. Marketing Plan

Include information about:

a) Marketing objectives
 b) The target market
c) Sales and marketing mix strategy
d) Competitors analysis
e) Research – that leading to product design – confirmation of demand and
future research planned.

1. Product/Operational Plan
 This motives the details of converting inputs to outputs valued by
customers
 Specify products/services to be produced
 Raw materials and suppliers
 Optional location for production activities
 Costing of the products offered.

2. Financial/Plan/Analysis

 Indicate the expected financial results of your

operations
 Show prospective investors or lenders
 Include projected financial statements at least up to
three trading periods i.e. Trading, Profit and Loss
 Account; Income and Expenditure Statements; Cash
 Flow statements; Balance Sheets etc.
 There should be an analysis of costs/volume/Profits
(CVP) where appropriate.
 Also include budget forecasting for : Production; Sales
and Expenses.
 Show the Financing of the business.

3. Milestone Schedule

 This involves the determination of objectives and the

timing of accomplishments.
 It is like a map of how you will go from one place/stage
in your business to the next.
 Deadlines should be established and monitored.

10. Appendix

This section includes supporting documentation for your Business Plan e.g.

 Names of References and Advisors and their addresses

and phone numbers
 Bargains, Tables, Charts
 Resumes of officers
 Supportive market research
 Brochures of other published information describing
the products you provide.
 Letters of recommendations or endorsements etc.