Section I: Executive Summary

It is a synopsis of the entire plan in a capsulized form, which explains the basic business model and
briefly describes the owner, key employees, target market, and financial data. The Executive Summary is
the most important part of your business plan. Often, it’s the only part that a prospective investor or
lender reads before deciding whether or not to read the rest of your plan. It should convey your
enthusiasm for your business idea and get readers excited about it, too.

Write your Executive Summary LAST, after you have completed the rest of the business plan. That way,
you’ll have thought through all the elements of your startup and be prepared to summarize them.

The Executive Summary should briefly explain each of the below.

1. An overview of your business idea (one or two sentences).

2. A description of your product and/or service. What problems are you solving for your
target customers?
3. Your goals for the business. Where do you expect the business to be in one year, three
years, five years?
4. Your proposed target market. Who are your ideal customers?
5. Your competition and what differentiates your business. Who are you up against, and
what unique selling proposition will help you succeed?
6. Your management team and their prior experience. What do they bring to the table that
will give your business a competitive edge?
7. Financial outlook for the business. If you’re using the business plan for financing
purposes, explain exactly how much money you want, how you will use it, and how that
will make your business more profitable.

Limit your Executive Summary to one or two pages in total.

After reading the Executive Summary, readers should have a basic understanding of your business,
should be excited about its potential, and should be interested enough to read further.

Section II: Company Description

 The main body of the business plan should have a general description of the company.

a) Company Description – The entrepreneur knows how to translate an idea into a business and
describes the company itself. The purpose and reason for the business venture should also be
discussed.

b) Company History – The owner should prepare a brief history of the company and highlight its
significant events. It describes how the company is formed and what it will be in the future.

c) Mission & Vision Statement – It is the entrepreneur’s vision of what the company is and what
he wants to accomplish with the business in the future. A mission statement is a brief
explanation of your company’s reason for being. Ex. “Doggie Tales is a dog daycare and
grooming salon specializing in convenient services for urban pet lovers. Our mission is to provide
 service, safety and a family atmosphere, enabling busy dog owners to spend less time taking
care of their dog’s basic needs and more time having fun with their pet.”
Company philosophy and vision
 What values does your business live by? Honesty, integrity, fun, innovation and
community are values that might be important to your business philosophy.
 Vision refers to the long-term outlook for your business. What do you ultimately want it
to become? For instance, your vision for your doggie day-care center might be to
become a national chain, franchise or to sell to a larger company

d) Products and Services – This part describes all the products and services offered by the
company.

 Your company’s products and/or services: What do you sell, and how is it manufactured
or provided? Include details of relationships with suppliers, manufacturers and/or
partners that are essential to delivering the product or service to customers.

 The problem the product or service solves: Every business needs to solve a problem that
its customers face. Explain what the problem is and how your product or service solves
it. What are its benefits, features and unique selling proposition? Yours won’t be the
only solution (every business has competitors), but you need to explain why your
solution is better than the others, targets a customer base your competitors are
ignoring, or has some other characteristic that gives it a competitive edge.

 Any proprietary features that give you a competitive advantage: Do you have a patent
on your product or a patent pending? Do you have exclusive agreements with suppliers
or vendors to sell a product or service that none of your competitors sell? Do you have
the license for a product, technology or service that’s in high demand and/or short
supply?

 How you will price your product or service: Describe the pricing, fee, subscription or
leasing structure of your product or service. How does your product or service fit into
the competitive landscape in terms of pricing—are you on the low end, mid-range or
high end? How will that pricing strategy help you attract customers? What is your
projected profit margin?
Include any product or service details, such as technical specifications, drawings, photos, documents and
other support information, in the Appendices.

e) Legal Status and Ownership – This part describes the business type and who owns the business
ideas.

 Is your business a sole proprietorship, LLC, partnership or corporation? Why did you
choose this particular form of business?
 If there is more than one owner, explain how ownership is divided. If you have
investors, explain the percentage of shares they own. This information is important to
investors and lenders.

Section III: Industry Analysis

  This section familiarizes the investors with the industry in which the business will
compete. It will also describe the industry in terms of its market size, growth rate, and
sales projection, including where its promising areas are and where its points of
vulnerability are.

a) Industry Size, Growth Rate, and Sales Projection -What is the size of your industry? What are
the industry's estimated sales this year?

b) Industry Structure - What sectors does this industry include?

c) Nature of Participants - Who are the major players in this industry? What are the markets and
customers for this industry?

d) Industry Trends - What national and economic trends have affected this industry and how?
What national and economic trends might affect it in the future and how?

e) Long-Term Prospects - What is the long-term outlook for this industry?

Section IV-A: Market Analysis

 Entrepreneurs must prove that there is a real market for the proposed products or services. The
market analysis breaks the industry into segments to which the firm will try to appeal.

 One of the characteristics of a good business is the ability to attract real customers who are
willing to buy the products or get the services of the business venture

 A good market analysis should identify the following:

a) Target Market – Identify the promising customers or prospects and give their characteristics
and location. You may have more than one target customer group. For instance, if you sell a
product to consumers through distributors, such as retailers, you have at least two kinds of
target customers: the distributors (businesses) and the end users (consumers).

Identify your target customer groups, and create a demographic profile for each group
that includes:

 For consumers: Age, Gender, Location, Income, Occupation, Education level

 For businesses: Industry, Location, Size, Stage in business (startup, growing,
mature), Annual sale

b) Market Size and Trends – How large is the potential market? is it growing or shrinking?
c) Location – Choosing the right location will give a better chance of success. If you have a
location picked out, explain why you believe this is a good location for your startup. If you
haven’t chosen a location yet, explain what you’ll be looking for in a location and why,
including:
 Convenient location for customers
 Adequate parking for employees and customers
 Proximity to public transportation or major roads
 Type of space (industrial, retail, etc.)
 Types of businesses nearby
Focus on the location of your building, not the physical building itself
d) Pricing – How much does the product or service cost to produce and deliver to customers?
What is the company’s overall pricing strategy? How do you plan to set prices? Keep in mind
that few small businesses can compete on price without hurting their profit margins. Instead
of offering the lowest price, it’s better to go with an average price and compete on quality
and service. Does your pricing strategy reflect your positioning? Compare your prices with
your competitors’. Are they higher, lower or the same? Why? How important is price to your
customers? It may not be a deciding factor. What will your customer service and credit
policies be?

Pricing models can be: Cost Plus- The costs of making/obtaining your product or
providing your service, plus enough to make a profit or Value Based- Based on
your competitive advantage and brand (perceived value) or others.

e) Distribution – How will the products or services be distributed? What can the company do
to make it easier for customers to purchase products or services? It must describe the
channels of distribution that the business will use. These may include:
 Retail
 Direct sales
 Ecommerce
 Wholesale
 Inside sales force
 Outside sales representatives
If you have any strategic partnerships or key distributor relationships that will be a
factor in your success, explain them here.

f) Advertising – After identifying the company’s target market, design a promotional campaign
to reach those customers effectively

Advertising may include:

 Online, Print, Radio, Cable television, Out-of-home

Which media will you advertise in, why and how often? Marketing may include:
 Business website, Social media marketing, Email marketing, Mobile marketing,
Search engine optimization, Content marketing, Print marketing materials
(brochures, flyers, business cards), Public relations, Trade shows, Networking,
Word-of-mouth, Referrals
What image do you want to project for your business brand? What design
elements will you use to market your business? (This includes your logo, signage
and interior design.) Explain how they’ll support your brand.

g) Competitor Analysis – The entrepreneur should discuss the competitors of the business
venture. He should study the competitor’s market shares, products, and strategies to
compare them with his products or services. You may present this with a table.

Here are some of the factors that you may assess and compare your company’s
Strengths and weaknesses compared to your competitors:
 -Products, Price, Quality, Selection, Service, Reliability, Stability, Expertise, Company
Reputation, Location, Appearance, Sales Method, Credit Policies, Advertising, Image

Section IV-B: Marketing Plan

a) Overall Marketing Strategy

Product, Price, Promotion, and Distribution

Section V: Management Team and Company Structures

 It is a challenge for every entrepreneur to hire and attract the right people for the company. The
quality of your people will determine the success of the business.

 Organization Chart
Develop and include an organization chart. This should include both roles that you’ve already
filled and roles you plan to fill in the future.

-Indicate the people who are on your team, their qualifications, and their responsibilities.

 The plan should describe the qualifications and work descriptions of the business officers and
key employees. An investor will check on the qualifications of the people who will implement
the business plan.

a) Management Team (Key Personnel)

b) Board of Directors (if applicable)

c) Board of Advisers (if available)

d) Company Structure

Section VI: Operations Plan

a) The General Approach to Operations- Illustrate how the business runs from the front
stage (seen by the customers) to the backstage (unseen by the customers). How will you
keep track of inventory? How will you keep costs reasonable to remain competitive?

b) Business Location- Where is your business located? You briefly touched on this in the
Company Overview. In this section, expand on that information with details such as:

 The size of your location

 The type of building (retail, industrial, commercial, etc.)
 Zoning restrictions
 Accessibility for customers, employees, suppliers and transportation if necessary
 Costs including rent, maintenance, utilities, insurance and any build out or remodeling
costs
 Utilities
 c) Facilities and Equipment and suppliers- describe all the equipment and facilities to be
used. List supplier Names, addresses, websites and Type and amount of inventory
furnished (facilities layout & table of equipment and supplies)

Section VII: Product Design and Development Plan

a) Development Status and Tasks- Production process- How will you will produce your
product or deliver your service? Describe your production methods, the equipment
you’ll use and how much it will cost to produce what you sell. (from raw
materials/ingredients to final packaged product)
b) Challenges and Risks
c) Intellectual Property- What type of legal environment will your business operate in?
How are you prepared to handle legal requirements? Include details such as:
 Any licenses and/or permits that are needed and whether you’ve obtained them
 Any trademarks, copyrights or patents that you have or are in the process of
applying for
 The insurance coverage your business requires and how much it costs
 Any environmental, health or workplace regulations affecting your business
 Any special regulations affecting your industry
 Bonding requirements, if applicable

Section VIII: Financial Projections

a) Sources and Uses of Funds Statement

b) Assumption Sheets

c) Pro Forma Income Statements

d) Pro Forma Cash Flows

e) Ratio Analysis