Business plans are an important tool that every entrepreneur should create and revisit, no matter how

long you have been in business. Described as a “living document,” a business plan should change as your
business evolves. Business plans serve many different purposes and should be written depending on the
target audience. For example, your plan could function as a guide for you and your key employees to
ensure your business achieves success, through including detailed goal setting and strategically mapping
how you will have staying power over your competition. It could also be written to educate lenders and
investors of your business’ strengths, experience and potential in order to access capital, which is the
most common reason for creating a business plan.

There are a few key topics to include in your business plan if your goal is to obtain capital:

Executive Summary

Your business plan should begin with an executive summary or a quick overview of your business. In the
executive summary, give a quick description of the problem you solve for your clients through the
product or service you sell. Summarize the key points from your business plan in the executive summary
and save the details for later. It is easiest to write your executive summary after you have completed the
other sections of your business plan. The main questions to answer in the executive summary are “what
product or service you sell?” and “what goal do you want your business to achieve?” keeping the
content no longer than a page.

Company Overview

The next section in your business plan should be the company overview. This section should include
details of the business such as who owns the business, what is the legal-structure (sole proprietor,
Limited Liability Company, corporation, non-profit or other) and how long you have been selling your
product or service. Don’t forget to include your resume or bio and those of key employees. Explain to
your lender how much experience you have and how well you understand the industry.

Target Client and Competition

After your reader is familiar with your business and product, tell them about your target client and
competition. Acknowledge and explain your strengths and weaknesses as well as those of your
competitors. Strategize a plan to maximize your strengths and create solutions to overcome your
weaknesses.

Marketing Strategy

Follow up with a marketing strategy to give your reader insight about your plans to promote your
product or service. Take into consideration your business cycle, competition, and promotional tools.
Position your product or service to be competitively priced and stand out from the competition.
Financial Statements

The financial section is one of the most important sections of your business plan, supporting the
previously mentioned strategies. If the business is a start-up, include a start-up cost analysis and
personal injection of capital. Projected profit and loss statement, balance sheet and cash flow
statements for a minimum of three years will also be required with assumptions. Calculate your
breakeven point and be realistic when creating your projections.

If you have been in business for over two years, the financial section should include historical data. If
your company has not performed as you first projected financials, give explanations for the differences
and include your plans to increase profits.

A business plan does not need to be lengthy. The key to a good business plan is to answer the following
questions:

What product or service do you sell?

What is proprietary or special about your product or service?

What makes you different than your competitors?

What experience do you or your employees have selling this product or service?

Who will buy your product and how will you reach them?

How much does it cost to make your product or service and how much will you sell it for?

How will you be paid?

How soon will your business be profitable?