How to Create a Business Plan

A business plan is essential for managing any business. It defines what your business does, its goals, and helps you allocate resources properly, handle unforeseen complications, and make the right decisions.

A proper business plan should include:

• A current and estimated balance sheet
• An income statement
• A cash flow analysis
• A SWOT analysis (Strengths, Weaknesses, Opportunities, Threats)

Information Quality

The success of any business plan depends on the quality of the information provided. When writing your business plan, consider:

• What service or product does your business provide and what needs does it fill?
• Who are the potential customers for your product or service and why will they purchase it from you?
• How will you reach potential customers?
• Where will you gain the financial resources to start your business?

Take your time and gather as much information as possible. The more analysis you do upfront, the greater your chances of success.

Business Plan Structure

1: Name of Business and Contact Information

Include your business name, address, phone number, and email.

2: Summary

An overview of your business stating its purpose and highlighting strategies for success.

3: The Business

Detailed information about:

• Description of business
• Ownership
• Marketing
• Competition
• Operating procedures
• Personnel
• Objectives

Include analysis of your industry, competitors, and likely market share. Detail responsibilities and key dates for major objectives.

4: Finances

Include:

• Loan applications
• Equipment and supply list
• Balance sheet
• Breakeven analysis
• Estimated profit and loss statements for 1, 2, and 3 years (with quarterly breakdowns)
• Assumptions for projections
• Estimated cash flow

5: Supporting Documents

Attach:

• Financial statements for the last three years (if existing business)
• Franchise contract and supporting documents (if franchised)
• Proposed lease or purchase agreement for building space
• Relevant business licenses and legal documents
• Resumes of owners or key managers
• Letters of intent from suppliers