Business Plan Outline

A business plan describes a company's past and current operations, and demonstrates how a desired investment or loan will further the company's goals and reward the investor.

Since a business plan will be almost the sole basis for a potential investor or lender to make his decision, it should adhere to the following outline in all its detail.

As part of a complete loan package, the business plan can follow a streamlined, simplified version of the outline below.

Sample Business Plan Outline

I. Cover Letter
  1. Dollar amount of loan or investment.
  2. Type of financing or investment sought.
  3. Terms and timing of repayment, instrument, or equity.
II. Summary
  1. Business description.
    1. Name
    2. Location and plant description
    3. Products and services
    4. Market and competition
    5. Management expertise
  2. Business goals.
  3. Summary of financial needs and application of funds.
  4. Earnings projections and potential return to investor(s)
III. Market Analysis
  1. Description of total market
  2. Industry trends
  3. Target Market
  4. Competition
IV. Products or Services
  1. Description of product line
  2. Proprietary position
    1. Patents
    2. Copyrights
    3. Legal considerations
    4. Technical considerations
  3. Comparison to competitors' products
V. Manufacturing Process (if applicable)
  1. Materials
  2. Sources of supply
  3. Production methods
VI. Marketing Strategy
  1. Overall strategy
  2. Pricing policy
  3. Sales terms
  4. Method of selling, distributing and servicing products.
VII. Management Plan
  1. Form of business organization
  2. Board of directors composition
  3. Officers: organization chart and responsibilities
  4. Resumes of key personnel
  5. Staffing plan, number of employees
  6. Facilities plan, planned capital improvements
  7. Operating plan, schedule of upcoming work for the next one to two years
VIII. Financial Data
  1. Financial history (five years to present)
  2. Five-year financial projections (first year by quarters, remaining years annually)
    1. Profit and loss statements
    2. Balance sheets
    3. Cash flow estimates
    4. Capital expenditure estimates
  3. Explanation of projections
  4. Key business ratios
  5. Explanation of use and effect of new funds
  6. potential return to investors compared to competitors in the industry and investment generally.
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