Depending on what the purpose is, a business plan could take different forms. The emphasis would change depending on whether the business plan is for a start up one or for an existing business. Typically an existing business planning to raise money would include the following in its business plan:
- Business objective and the short-to-medium term business outlook
- Business accomplishments so far in terms of markets, customers and value creation
- An analysis of the market, competition and your position within the market
- Your products and services, how these fit in to the market and the strategy chosen
- Your financial performance
- The need for cash explained by a detailed cash flow and an analysis of the funding gap
- A brief about the key people behind the show
Devoid of jargons and written in plain English, ideally a small business plan could include some bullet points, a few tables and charts to highlight key areas. Assumptions made to forecast future performance should be stated as such and where the numbers look optimistic appropriate disclaimers may not be a bad idea. Briefly speaking, there are some standard areas that every business plan ought to cover:
- A brief about your company highlighting the founders, and the various achievements so far.
- The products or services you offer.
- The industry you are in, describing your market in terms of size, demographics, growth prospects and trends, and where you fit in with your competition
- Your strategy to achieve your objectives, particularly your marketing and financial strategies with milestones in terms of timelines and performance indicators
- Key value drivers and key performance indicators
- Cash flow projections
- Key members on your team including your key management team
Whilst there isn’t a single model that fits all, generally this brief may provide a good start.
