How to Write a Comprehensive Business

Plan
Planning plays a critical role in starting and building your business. It acts as a blueprint for where you
want your business to be in the next three to five years and an idea of how to make it happen. It can
also illuminate potential problems before they occur. While businesses have been launched with a plan
that consisted of notes on scratch paper, a comprehensive business plan covers all aspects of your new
venture.

Executive Summary

The executive summary tells people about your business, its goals, and how and when it will
accomplish the goals. Even though it’s the first section people see, it’s generally written last.
Even though it's just a few paragraphs or pages long, it serves as your first contact with potential
investors and lenders. The U.S. Small Business Administration suggests if you have an
established business, you should also include your mission statement, company information
including products and services, company growth statistics and a financial overview.

Company Overview

The company overview section offers a high-level description of your business’s purpose, its
products or services and who your target customers are. It also explains how your business
differentiates itself from its competitors and how that helps you meet your goals. This
information is also referred to as market analysis. It gives readers an idea of how much market
share you plan to gain and how you plan to gain it, as well as a projection of your gross profit
margins. This section can help you determine the strengths and weaknesses of your competition
to give you an idea of the feasibility of your business.

Organization and Management

This section describes the way your business is organized based on its legal business structure
and outlines who does what. An organizational chart along with explanations of the roles
clarifies your business structure. You may want to include your management team’s biographies,
board of director information and the owners and percentage of ownership. The section should
also include compensation schedules and rates.

Services and Products

Describe your business’s products and services including how they benefit the consumer. Include
your product’s life cycle, what stage it’s in and how this affects its future. Intellectual property
such as patent fillings or copyrights can be listed in this section. If your product involved
research and development, include those activities.
Marketing and Sales

Now that you know what you’re selling, writing about how and to whom you sell comes next.
This section describes your target audience, where it shops for your item and what media you
will use to reach it. This marketing strategy helps you figure out the most efficient and effective
way to reach customers, which is essential to the growth of your business. Sales come hand-in-
hand with marketing. Describe who and how you plan to sell your products.

Funding Request

Write about your funding needs including start-up and operational over the next five years. Write
about what you plan to spend the money on, indicating if it is on capital expenditures or working
capital. Describe how your business would navigate a buyout or acquisition and include a
repayment plan or description of what would happen in the event you sold your business.

Financial Projections

An established business can use historical data to outline its financial performance. Use
information from the past three years minimum. These include income statements, balance sheets
and cash flow statements. You should also include any collateral the business owns such as real
estate, equipment, vehicles or inventory. According to the SBA’s research, creditors want to see
projections and how you plan to meet your goals. Include an overall analysis on the company’s
financial health.

Appendix

The appendix includes supporting material that further illustrates your business’s goals and
purpose. These could include letters of reference, product photographs, financial charts and
forecasts.