Format of a Business Plan Report

1. Cove Sheet (Name of the company, address, promoters)

2. Table of content
3. Executive summary
This is the opening section of the business plan. It is a synopsis of the proposed enterprise that is
intended to capture reader’s interest. Usually no longer than pages and includes the following:
Definition of the business: the company must be identified to include when it was formed, by
whom, and for what purpose. The most important requirement is to explain the purpose of the
new venture.
Product or service: the entrepreneur must describe clearly what be sold. If there is a proprietary
interest (patent, trademark, or copy right), it should be stated. The executive should briefly
describe how far the entrepreneur has gone to develop the product or service.
Market characteristics: existing and potential markets must be briefly described interns of size
and geographic characteristics. The plan must provide summary of data to validate projection.
The entrepreneurial team: an entrepreneurial team may include only the founding entrepreneur,
but other key personnel are usually essential for the firm’s success.
Financial summary: critical financial considerations should be summarized to include start-up
estimates, cash flow requirements, profit or losses.
4. The Business Description
This explain the executive summary, the plan will provide detail sections on each major topic.
Essentially the same points covered in the executive summary are covered here, but they are
covered in far greater detail. The following can be briefly described:
a. Objective of setting up business
b. Brief history of past performance (if any)
c. Form of ownership
d. Name, qualification of the owner
e. Proposed/head quarters
f. Form of ownership
5. Product or Service Description
This section explains the product or service concept. The explanation should include an
adequate description of the product, its purpose, distinct attributes, and how it is used.
6. Market Research and Analysis
The objective of marketing research and analysis is to establish that a market exists for the
product venture. This may be the most difficult part of the plan, but it is also may be the most
important part. Entrepreneur must provide a credible summary of potential customers, markets,
competitors, and assumption about pricing, promotion and distribution.
Potential customers: research should describe a customer profile that includes demographic
information such as sex, age, income, occupation, education, location of potential customers.
Markets: a market exists only when there are qualified buyers, but entrepreneur must remember
that the feasibility plan is a forecast of future markets, not merely those that exist. Therefore,
market trends are important to identify, including unusual opportunities for the new business.
Competitors: it is essential to identify competitors and to analyze how competition is likely to
change when the new venture becomes established. The minimum requirement is to identify
existing competitors and to explain their strengths and weakness.
Market Niche: a market niche is a careful defined segment of a broader market. It defines the
positioning of product or service to create a distinct marketing focus. A brief statement in the
plan should explain this focus.
Pricing system: market research is predicted on a price system that helps describe the venture’s
market. Normally prices and pricing policies, means of discounting, credit policies, and price
strategies should be defined. This statement does not have to elaborate, but it has to be sufficient
to justify sales forecast.
Method of distribution: a method of distribution is the manner in which products or services are
brought to market. The choice of distribution system often defines the market niche, pricing
system, and promotion activities.
The sale forecast: market research must conclude with solid data on projected sales. A sale
forecast is the culmination of research to indicate the quality of sales and expected gross sales
revenue during the planning period. The forecast is the single most important piece of
information in the plan.
7. The Market Plan
The market plan describes an entrepreneur’s intended strategy. It builds on market research and
distinctive characteristics of the business to explain how the venture will succeed. Some issues
addressed in the research section may be reserved for the market plan, such as describing the
market niche, but generally, this section focuses on specific marketing activities.
Prices: well-defined prices are required. Pricing policies should be identified here if they have
not been adequately identified earlier. Bulk prices, terms of sale, wholesale prices, retail prices,
and method used to drive price schedules, such as cost-plus pricing or price-lining, should be
indicated.
Promotion: promotional strategies, including options for employing promotional tools,
constitute the promotional mix. It is a conscious effort to select promotional tools from
adverting, personal selling, public relations, point of purchase display, and sampling among
others.
Distribution channel: if distribution channels have not been identified earlier, they must be
described here. These may include wholesaling, retailing, mail order, catalog sales, contracting,
or working through domestic or foreign brokers and agents.
Service and Warranty Considerations: identify any unusual warranties or guarantees that
support the marketing effort. These may be standard warranties or special warranties, and they
may include after-sale service, customer support, hotline consulting, or some combination of
services that enhances sales.
Marketing leadership; the market plan should explain how organizational members will be
involved in the marketing effort. From the strategic perspectives, investors want to know how is
going to be responsible for actual marketing.

8. Operational or Manufacturing Plan

Depending on the nature of the business, this section may not require, but most businesses will
have some form of inventory or method of operations, and most will have facilities
requirements.
 plan location
 plan layout
Inventory management: retailers will describe beginning inventory required to open for business
and explain how merchandise will be replenished. Manufacturers will describe raw materials
and supplies needed in inventory prior to production, and they will also describe projected
finished goods inventory to opening.
9. Organizational Plan
 Organizational chart
 Detail about the board of directors
 Manpower planning
10. The Funding Requirement
a. Debt
b. Equity
11. Financial plan for 2-5 years
 For existing companies, a summary of previous financial data
 Start-up projection
 Projected sales
 Projected breakeven point
 Projected profit and loss statement(income statement)
 Projected balance sheet
 Cash-flow statement
 Projected cash flow
12. Critical Risks: the investors are interested in knowing the tentative risks to evaluate the
viability of the project and to measure the risks involved in the business. This can further give
confidence to the investors as they can calculate the risks involved in the business from their
perspectives as well.
13. Exit strategy: the exit strategies would provide details about how the organization would be
dissolved, what would be the share of each stakeholder in the case of winding-up of the
organization. It further helps in measuring the risks involved in investing.
14. Appendix: the appendix can provide information about CV of the owners, ownership
agreement, certificate from pollution board, memorandum of understanding, articles of
association and all supporting agreements/document that can help in marketing the project
viability at large.