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Business Planning 101

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August 9, 2017

Your business plan will range in length anywhere from 20 to 50 pages depending on the type of business and industry. Regardless of the length, typically, they will all contain the same sections. Below we have outlined each section of your business plan and what to include in each section:

Your Business Plan May include some or all of the following:

  • The Executive Summary.This is business plan overview, which the reader can get and idea of the key points that are included in your long form business plan. The Executive Summary should almost be able to stand on its own as a separate document.

 

  • Business Overview.Will offer a description of the business, including:
      1. The legal structure
      2. Business formation history
      3. The type of business
      4. Location
      5. How you will do business (Internet, storefront operation, mail order)

 

  • Operations Plan: Offer a description describing how the business will function, including the physical setup and responsibilities for specific tasks within your organization.

 

  • Market Analysis: Include an overview of the market as a whole, with specific data and charts or graphs, if applicable. Define your target market and your plans for catering to this specific audience.

 

  • Products and Services: Describe the products manufactured or sold or the services offered. Classify the different types of products or services and provide a brief description of each.

 

  • Sales and Marketing: Outline pricing and sales information. Include reasoning for why your clientele will buy your products or services and how you will reach them through marketing and advertising efforts.

 

  • Competitive Analysis: Analyze the strengths and weaknesses of your direct and indirect competitors. Demonstrate how you will gain a competitive edge against your competition. We like to use 3 to 5 of the strongest business competition in your area.

 

  • Management Team: Provide relevant, concise background information on all key players involved in the business.  Key points from each partners resume is a nice touch.

 

  • Financial Plan: Include all financial information, from startup costs to balance sheets.

The financial section should outline:

      1. The amount necessary to start or maintain the business
      2. The amount needed over the next two, three, and five years
      3. Plans to use funds
      4. Anticipated need for additional funding
      5. Ongoing business expenses, including salaries, insurance costs, promotional expenses, etc.
  • Provide projected income statements and balance sheets for at least three years.

As always, please trust in the professionals at KLRT Commercial for all of your commercial needs. If you have any questions please contact us at the numbers below.

Written by: Evan Taylor

Licensed Commercial and Residential Realtor, Entrepreneur & Business Owner