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Start-up Business Plan: Structure and Content

"A business plan is a document, a snapshot, of an ever-changing strategy. Change is a certainty." (John L. Nesheim)

Only one out of 20 business plans are read by prospective investors beyond the executive summary and only 6 out of 1000 business plans get funded in average. The quality of the business plan is crucial for winning attention of investors, especially for a first-time entrepreneur who has no track record in managing own business. It is not only important for a business plan to have the right content, but it also must be organized into logical and clearly defined sections and presented in a way that is informative and maintains readers interest. In writing your plan, you should keep it as short as possible while ensuring that you cover all the important topics in sufficient detail to substantiate your proposal.


Chapters	Content	App. length pp.
Executive Summary	Describe the market opportunity, your product to harvest the market opportunity, your strategy for addressing and selling to that market, financial results in the first years of operation, long term objectives, and the key personnel. This is a ”commercial” of your business plan as investors will read it first. It should be written last ensuring that only vital information is included in most clear and convincing way. The outline of the executive summary includes Company overview Management team Products and services Market analysis Funds requested and used Summary of Five-Year Financial Projections	2.0
Background	Describe the market recent developments, market trends and the market niche for your product	0.5
Business Concept	Provide detailed description of the products or service and implementation arrangements for the targeted types of customers: if you are selling a product: key suppliers and your terms and arrangements with them If you are selling a service: which services will be provided at the business location and which will be delivered "in the field"	0.5
Market Analysis	Market research (describe your target customers, provide an industry analysis and current trends; market size and the share you will capture, seasonality, unique aspects) Competitive factors (describe your competitors: list competitors by name, location, and their strengths and weaknesses; how you will succeed against them; how they will react to your entry into the market)	3.0
Objectives and Strategies	General Mission, e.g. to improve certain situation Objectives, e.g. to develop products satisfying specific needs of your target customers Marketing Objective, e.g. build a customer base to support your financial management objectives Strategy, including description of the "five P's" for your business: Product: how you will design and package your product/service Price: how you will price your product/service Place: how products ( and related services are distributed to the customer Promotion or marketing plan: what media and marketing methods you will use to generate awareness and interest about your product/service; include examples of your promotional materials (brochures, print ads, copy for radio ads, calendar of special/regular promotional events) People: who will be responsible for marketing your product/service Operations Objectives, e.g. to win customers by offering superior services Strategy Legal structure and why you chose it; include legal/governing documents (articles of incorporation and by-laws for corporation, partnership) Management and personnel who the key managers/owners are and what relevant expertise and background they bring to the business (include résumés) describe non-management positions, responsibilities/qualifications, personnel policies Customer service: procedures and policies regarding your work and how you will treat customers Location and operations your facility, including a layout, description of business image, hours of operation operations plan: how you will deliver your product/service to the customer, from start to finish (who does what tasks, how long it takes, etc.) renovations and equipment list (including prices and condition - new or used) taxes to be paid, licenses required, and insurance needed Key people: who will provide accounting and legal services, technical assistance and support Financials Objective, e.g. generate certain gross sales during the first year of operation Strategy Risk Management Objective, e.g. identify and act to minimize risks to your company Strategy, e.g. to develop a responsive system addressing the specific issues	3.0
Financials	Financial Forecasts (provide full set of cohesive financial statements: balance sheet, income statement and cash flow forecast, for a period of 3 to 5 years, including loan amortization schedule, and detailed assumptions for each line item; breakeven analysis; personal financial statement for all owners, co-signers) Sources of Capital (if the business plan is aimed to attract investors, explain clearly the investor’s exit strategy and how you expect to provide them with a return on their investment; note additional expected rounds of financing needed)	1.0
Technology / System Summary	Innovativeness (describe innovative aspects of your technology with relation to the market needs) System Components (describe major components of the technology/system and how they satisfy specific customer requirements) Manufacturing Methods Competition (compare your development program with existing technologies) Intellectual Property Rights (describe if your business is based on a proprietary technology and if the proprietary position is adequately protected)	1.0
Company Organization	Ownership at the initial stage and plans for the near future (see slide presentation) Management at the initial stage and plans for the near future, including coverage for the owner’s unforeseen absence (sick time, etc.) during critical periods Location	0.5
Appendices	Issues list (acknowledge barriers to success - list important issues and solutions to these issues) Issue, e.g. the owner has management/technology expertise, but no experience as a business owner; the proposed business concept is unproven; equipment damage risk; longer than expected time to the market; human resources shortage risk. Solution to each issue, e.g. use experienced consultants; take training courses; conduct preliminary field testing; sub-contract certain work; obtain insurances and develop backup systems; limit number of projects and/or develop contingency coverage partnerships. Marketing/promotional mechanisms (list mechanisms you are planning to employ for initial marketing of your product and provide their structure and brief description) Current Balance Sheet Assets (cash, bank accounts, other assets) Liabilities and Equity (credits, other liabilities, equity) Income Statement (list all your expenses incurred so far and income generated) Startup Costs (provide breakdown per cost components e.g. business license, corporation filing, legal fees, equipment, office expense, supplies, advertising, training, utilities, taxes, miscellaneous) Glossary (provide definitions of the special terms used in the business plan) Information about the Owner	3.0