An Outline to Creating an Effective Business Plan
Business Plan Outline
A Business Plan is a fundamental component of any company. It is the building foundation of progression from startup, through execution, to profits. The ultimate goal is to develop a well thought out plan that would make investors and lenders WANT to invest or lend money to your company to meet the measures outlined in the overall plan. Establish a plan that incorporates long term growth over the next few years but make sure to leave room for adjustments as the business grows and climate needs change.
Using an Outline to Create a Business Plan
This business plan outline will serve as the guide to launching your business. Remember, this is only the outline that you're creating so ensure it has some measure of detail, but it won't account for every obstacle that can occur. This is your guide to define the next few steps to establishing and launching your business. An effective business plan should contain the following elements:
Executive Summary
Your executive summary should include a summary of the plan (i.e., problem to be solved), a description of your product or service, an overview of your target market, a brief description of your team, a summary of your financials or projected financials, and your funding requirements (If seeking grants, loans, or investors).
Company Description
Describe how your company stands out from others in the industry. Describe the start-up and background of your company. Where your located, when was it established, and why it started. Your related background experience, start-up investment and advisory team members (if applicable) are important components of your company. Include your future goals and plan, trademarks, patents, and logo development.
Market Analysis
Research your industry, marketing, and competitors. Describe the state of your industry, who the major players are, chief characteristics (growth and trends) and present a SWOT analysis.
Strength - Outline your company's internal strengths. (i.e., accounting, finance, marketing, human resources, operations, and technology).
Weakness - Outline your company's internal weakness. (i.e., accounting, finance, marketing, human resources, operations, and technology).
Opportunity - Outline your company's external opportunities in trends, market growth, new markets, and new products.
Threats - Outline your company's external threats such as new competition, lack of user engagement, lack of sales, and price wars.
Organization / Management
This boils down to the overall optimal organization and management structures for your company. How will the company be handled, managed and who will make the final decision for the organization? For example, Limited Liability Companies (LLC) can be manager managed or membered managed based on the structure of the company and their operating agreement.
Products / Services
Describe your products, services, unique features, stages of development, production and manufacturing, product liabilities, proprietary features, and comparisons to competitive offerings. Explain what makes your company, products or services different from the competition and why? This is where you test the feasibility of your product and business by outlining the following:
Value - What value with your product or service do you bring to your customers?
Problem Solving - What problem does your product or service solve for your customers?
Money Making Capability - Can you make money with this venture?
Fit - How well does this venture fit your background, experience, and financial situation?
Marketing / Sales
Sales strategies and marketing plans are going to be discussed in detail. Describe your targeted market, this is the different groups who will buy your products or services. Your target market is developed by knowing the following:
Demographics - Age, gender, income, and education.
Psychographics - Attitudes, opinions, and beliefs.
Geographics - Location, region, country or population area.
Behavioral - Purchasing characteristics and buying power.
Desires - Needs or wants which solve a particular problem.
Economic Characteristics - Identify the higher order value that you can tap into.
Describe how you will engage, build trust, and lead your customers. How do you plan to promote and price your products or service? Have you identified your competition? Who are your major competitors and how do you compare in size and business volume? What is your competitive advantage? How will the product or service be distributed? What is the anticipated competitive response to your company? You may want to include brand pillars to let your customers know what your business stands for?
Financial projections
Projections are important if your business requires funding or investors. Any lending institution and/or investor will need to be sure that the business can guarantee a positive return on their initial investment. Profits are the targeted and main component to maintain the feasibility of the business.
Appendix
In this section you can include resumes, permits, and leases if this section is needed in your business plan.