BUSINESS PLAN

OUTLINE
Module 3
Starting a Business
Michael Di Girolamo
 Business Plan Outline
■ If you’re looking for funding for a new or existing business, you need
a business plan

■ Your business plan gives lenders and investors the information they
need to determine whether or not they should consider your company.

■ Your business plan outline is the first step in organizing your thoughts.

■ When you follow your outline, you ensure your business plan is in the
format that prompts investors and lenders to take action.
 Business Plan Outline Sections
1. Executive Summary
2. Company Overview
3. Industry Analysis
4. Customer Analysis
5. Competitive Analysis
6. Marketing Plan
7. Operations Plan
8. Management Team
9. Financial Plan
 1. Executive Summary
■ The Executive Summary is the most important part of your business plan.

■ Why? Because if it doesn’t interest readers, they’ll never even get to the
rest of your plan.

■ The Executive Summary needs to catch the reader’s attention and make
them want to read more

■ Every sentence in the Executive Summary should be important; do not

waste your reader’s time by including points that are not crucial. (Save all
the details for the actual business plan)
 1. Executive Summary
In the Executive Summary, you will:
■ Describe your business concept, the market you will serve, and your competitive
advantage.
■ Explain how you will differentiate your product or service from competitors?
■ Who is involved in the venture? Briefly summarize your management team's experience
and credentials.
■ How much money (if any) are you seeking and for what purpose?
■ How much money has the founder(s) invested in the business to date? How has this
money been spent?
■ Summarize your projected financial performance. Include projected gross revenues and
net profits in the first year of business.
■ Do you intend to draw a salary from the businesses in the beginning? If not, how will
you support yourself? If so, how much?
 2. Company Overview
■ This section provides a brief overview of your company. You will:
– Identify the legal structure of your company (e.g. sole proprietorship,
partnership or incorporated company)?
– When and how your company will be formed (or was formed)?
– Is your company already in operation or is it a start-up operation? If
it is operational, give a brief overview of your progress to date.
Include achievements such as patents, prototypes, contracts, and
market research indicating that the business is viable.
■ Note: Importantly, your past accomplishments are perhaps the best
indicator of potential future success. Be sure to identify and include all
key milestones your company has achieved to date.
 3. Industry Analysis

■ A) Identify the industry that you are in

■ B) Industry Overview:
• A Brief History
• Products/services sold
• Estimated size of the industry
• Trends in the industry (Growing, Stagnating, Declining)
• Leading businesses in the industry
• Government regulations
• What types of marketing Strategies are prevalent within the
industry (Advertising services, social media, etc.)
• Is the industry seasonal?
 4. Customer Analysis
■ A) Identify your target market (what kind of customers is your
product/service targeting)?
– Demographics: gender, age, income, race
– Lifestyle
– Geographical location
– Profession

■ B) Identify the customer needs: specify why customer want or need

your product/service
– Examples: Quality, location, reliability, comfort, price, value…etc
 5. Competitive Analysis
■ This section contains 3 sub-sections:
– A) Direct Competitors: companies that fill the same customer need
you fill with the same solution.
■ Who are you direct competitors?
■ What are their strengths and weaknesses?

– B) Indirect Competitors: companies that fill the same customer need

you fill with a different solution.
■ Who are you indirect competitors?
■ What are their strengths and weaknesses?

– C) Competitive Advantages: state what is it about your company that

will allow you to effectively compete (and win) against both direct
and indirect competitors
 6. Marketing Plan
■ Marketing Plan contains 4 subsections (the 4 P’s of Marketing):

– A) Product (or Service): Give details of the product/service that you company
offer

– B) Pricing: start thinking about your pricing. Discuss how your pricing will relate
to competitors.

– C) Promotion: how will you attract customers to buy your product/service. Detail
all forms of advertising that you think you will use.

– D) Place (Distribution Plan): Distribution Plan outlines the ways in which

customers can buy from you.
■ Can they only buy directly from you (at your physical store or online)?
■ Do you have distributors or partners who sell your products or offer your services?
 7. Operations Plan

■ This section includes 2 sub-sections:

A) Key Operational Processes:
– Your Key Operational Processes are the daily functions your business
must conduct.
– By completing this section, you’ll get great clarity on the organization
you hope to build.

B) Milestones:
– In this section of your business plan, list the key milestones you hope
to achieve in the future and the target dates for achieving them.
– Here is where you set goals for specific and critical undertakings
 8. Management Team
Management Team Members:
■ This section details the current members of your management team, their backgrounds and
what their responsibilities will be
■ You may also prepare an organizational chart for the company which shows the structure of
the company (including all employees, who they report to, what department they belong to…
etc)
 9. Financial Plan
■ In Module 6, we will learn about

– Balance Sheet
– Income Statement
– Cash Flow Statement
– Break Even Analysis
– And more 