Starting your planning engine: Part three - Structure

Business plans are as varied as the companies that compile them, some plans runs most than 80 pages whereas others fills a few sheets. Some plans starts with executive summaries and others go straight to detailed description of products and services. Some companies prints their plan on paper, and other publish their plans on the web.

Every business plan is written for a different reason and to obtain a different outcome. Still, some plans are better than others.

Business plan typical structure

Business plans come in all shapes, sizes, formats but they all share a similar scheme:

_ Table of contents: A guide to important sections in your business plan and is especially useful if your plan exceeds ten pages.

_ Executive summary: This section is a summary of the key points in your business plan. You should incorporate it if your plan runs more than ten pages and you want to convey important information upfront, try to keep it to two pages or less.

_ Company overview: This section describes your company and the nature of your business. It may include your company’s mission and vision statements as well as descriptions of your values, your products or services, ways your company is unique, and what business opportunities you plan to seize.

_ Business environment: This section includes an analysis of your industry and the forces at work in your market; an in-depth description of your direct and potential competitors; and a close look at your customers, including who they are, what they want, and how they buy products or services. Think of this section this way: It describes everything that affects your business that’s beyond your control.

_ Company description: In this section, include information about your management team, your organization, your new or proprietary technology, your products and services, your company operations, and your marketing potential. Focus on areas where you have real advantages over your competition.

_ Company strategy: This section brings together the information about your business environment and your company’s resources and then lays out a strategy for going forward. Included in this section is your analysis of the opportunities, threats, and uncertainties that your business faces along with the ways you plan to avoid pitfalls and take advantage of opportunities.

_ Marketing plan: This section is where you describe how you plan to reach prospects, make sales, and develop a loyal clientele. Because customers and sales are essential to your company’s success, this section is a major component of your business plan.

_ Financial review: This section includes a detailed review of dollars and cents, including the state of your current finances and what you expect your financial picture to look like in the future. It typically contains financial statements, including an income statement, your balance sheet, and a cash-flow statement.

_ Action plan: In this section, you detail the steps involved in implementing your business plan, including the sequence of actions and how they align with your goals and

_ Appendixes: This section includes detailed information that supports your business plan. It may include analyses, reports, surveys, legal documents, product specifications, and spreadsheets that deliver a rounded understanding of your business plan but which are of interest to only a small number of your readers.