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Writing a Traditional Business Plan

by Kaye Vivian

Some of the information in these opening paragraphs is repeated in the other business plan outline, however, both outlines are different.  This outline is geared toward a more traditional manufacturing and distribution type company and presumes you will prepare a 25 page document (about the maximum you need).

For a high technology type company, take a look at this different approach.  If your business or idea is simple, then you may not need more than 8-10 pages. 

However, you do need to address each of these topics, even if only to show why it's *not* important for your business.

And as you write, write as if you were already in that business... don't write about what you do now unless it's important for what you plan to do.

Note that packaging is important. With today's technology, it is not difficult or expensive to insert color images or accent color to make the final product more appealing, distinguish your company, and improve content retention.

Plan to print your business plan on a good quality laser or color printer and bind the copies in attractive covers.

While a business plan is not the place to test your fledgling graphic design talents, using a nice text layout and effective headlines will make the document look more professional.  Do invest some time in the appearance of the finished product. And proofread everything!

Business Plan Outline

I.  Executive Summary

(maximum of 2 pages that summarizes everything in the rest of the business plan in a compelling or persuasive way)

2. Table of Contents

(keep it simple)

3. Company Description

(what business you are in, your principal services, markets, products, etc., the chief factors that dintinguish you and will account for your success)

4.  Market Analysis and Marketing

(a)  Industry  (describe the industry size, customers, etc.; target markets you will try to reach (this is a critical element of the overall plan); regulatory requirements, impact of your business on the market, how will the market and/or your services change over the next 3-5 years)

(b)  Competition (who, how do you compare--esp. in the eyes of customers, market share of existing competitors)

(c)  Marketing activities (strategy, meaning the image you will work toward, specialization, how you will focus on specific target markets; pricing; sales appeals; how you will prioritize your market segments and activities)

(d)  Selling activities (how you'll identify prospective customers, how will you decide who to contact and in what order, how long will it take to generate business)

5.  Technology:  Research,  Development and Trends

(describe the essence of your current technology and any breakthroughs or recent developments that may affect the science of how you do your business; describe new technologies or approaches that may become practical in the next few years)

6.  Business Operations or Manufacturing

(how will you conduct your operation, what operating advantages do you have, if you will use subcontractors how much of the work will they do)

7.  Management and Ownership

(name key personnel, how you will attract key people, what are their skills--particularly experience--that relate to the success of the venture, what position staffing additions do you plan and when, who will be on your Board of Directors, what is your stock/ownership plan)

8.  Organization and Personnel

(how many people will you need--by type, what compensation method will you use <salary, stock>, show a sample organizational structure for the startup and for later)

9.  Funds Required and Their Use

(how much do you need now to open, how much over the next 3 years and when will it be needed, how will the funds be used--tie back to your business development goals)

10.  Financial Data

(make projections of profit and loss or income statements by quarter until the break even point, then annually after that for the first 5 years, state what assumptions have been made and why your assumptions are good)

11.  Administrative Considerations

(Name of the business should reflect the major thrust of the business or be distinctive in some way, business plan should be printed and bound, copies of the plan should be controlled and distribution recorded--number each copy and get a confidentiality agreement from each person to whom you give a copy of the plan that shows the number of the copy on it)

12.  Appendices

(resumes of key managers, professional references, copies of any market studies or articles from trade journals or local business press that support your claims about the potential success of this type of business)

Copyright 1997 by Kaye Vivian at kvivian@cloud9.net. All rights reserved.


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