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The Plan for Business Plans

Section 1 - Overview and Plan Objectives

Objectives of business plan / current situation analysis
What the business wants (in terms of time goals, profit goals, productivity goals, and required financing)
Brief description of business opportunities (including client/customer needs to be served)
Obstacles to be overcome
How client/customer needs are to be served by the business 
Brief Description of business resources (all, including human, financial, and intangible)

     Be sure to answer these questions at the outset:  where is your seed money?  Then, where is the collateral?

 This section consists of a paragraph summary from each succeeding topic.


Section 2 – Experience and Capabilities

   Principals
   Current Business
   Related Past Businesses
   Work Force Experience and Capabilities
   Business Assets

Create summaries for each topic here.


Section 3 – Marketing Plan and Forecast

   Statement of marketing objectives
   Market research (must demonstrate need for proposed services)
   Description of opportunity in the marketplace, including building the case for why people
   will say, “I would be an absolute fool to do business with anyone but you, regardless of price.”
   Analysis of competitive environment – Exactly how is this business better?
            This must be seen through the eyes of the potential client/consumer
   Develop Marketing Strategy In Terms of Major Variables
       Product/Service
       Price
       Distribution
       Advertising
        Personal Selling

The focus of this section is strategy, but your spirit matters, too.  You must have the burning desire to make all his communications come alive, reach out and grab prospects and make them want to listen to the message.  Complete this section with the following:
  Sales Forecast
  Resources Forecast
  Operating Budget
  Contingency Plan and Budget Ramifications
  Financing Requirements
These are mechanical variables that must reflect the marketing strategy and some realistic assumptions about its impact in the marketplace.  You really need to make your case here.


Section 4 - Development Plan ( Execution of Marketing Strategy)

  Expected growth of demand and how your business will meet it
  Detail of expenditures
  Describe new facilities
  Describe new personnel
  Describe new product line or services
  Describe new anything else
  Advertising and promotion

Advertising and promotion provides the means for the marketplace to buy the product or service.  It must involve a systematic process that continuously nurtures prospects and gives them enough information on a consistent basis so that, when they finally become ready, they instantly, automatically choose your product or service.
  Other expenditures to execute marketing strategy
Section 4 must be based on realistic projections about marketing the product or service and the acquisition of the resources that will make it possible.


Section 5 - Pro Forma Financial Statements/Notes

 Create your detailed Plan of Action here, complete with its financial implications. The Plan of Action envelopes
 your marketing plan, adding all of the support necessary to execute it.
 Present pro forma projections (Income Statements, Cash Flows, and Balance Sheets) for atleast 3 years
 Present detailed notes to support each statement item (from Plan of Action)
 Make available all Relevant Past or Ancillary Financial Statements and Tax Returns
 Develop and present a Sensitivity Analysis on all critical input factors (sales, costs, expenses, interest rates, 
 debt characteristics, equity characteristics)
 

Section 6 - Valuation of Business Assets

 Present appraised values of tangible and intangible assets
 Present evidence of contracts and covenants
 

Section 7 - Appendices

 Narrative Appraisals
 Statistical Analyses
 Detailed Market Studies
 Ancillary Information (media articles, references)

The final step is to match your needs to the appropriate financing source.  Writing a business plan is, of course, valuable in its own right, but the usual objective is to obtain financing.