A business plan layout should be efficient, easy to follow and simple to use.
The other important aspect is a plan should be about getting results. Not just
for your own organization’s sake, but for bankers, financiers, investors and other stakeholders. After all, there is no point in spending time on a plan if there is no real purpose or benefit from creating one.
This article discusses a simple business plan layout formula.
What really is a successful business plan?
A business plan is any forward projection of vision, goals, resources, and strategy which focuses on key points and prepares for challenges and growth, strengths and weaknesses.
Wow. That took some getting out, but I think many people think business plans only apply for those starting a new business or for applications for loans or some sort of funding.
Whilst these are good reasons for creating a plan, the real strength behind a business plan is it optimizes growth and development according to the specific goals and objectives of the business.
Is there a standard business plan layout?
A more conventional business plan which follows the advice of business consultants and experts includes the core components listed below. Of course there are many variations of business plan layouts but usually a plan includes company descriptions, product or service analysis, who the market typically is, predictions for future growth, management, operations, team and financial analysis.
A very good idea before you start any plan is to work out the clear reason why you are creating one. Is it for the banks or other financial investors? Or is it to be used internally only?
If the plan is more for internal use, you can minimize the background details that are already obvious. Whereas for external use, you would highlight and add more detail to this section to match the business plan’s core purpose.
What are the most important sections of any business plan layout?
The most crucial aspects of any plan are the cashflow, sales and profit forecasts (the financials) and the implementation of any strategic actions. After all if the plan is drawn up and obviously not acted upon, there is very little benefit of creating one in the first place. Implementation to a set of goals and resources is the name of the game.
A great standard outline to follow would be this:
The order is not really crucial and is open to specific interpretation, but the components of a great plan are:
1. Executive Summary: A page of the major highlights and overall focus.
2. Company Description: Start up plans, brief history, legal establishment etc.
3. Product or service descriptions: Focuses on benefits of the products and services to be sold.
4. Market Analysis: Crucial to determine and plan for whom the market and the customer are and how you will get to them effectively.
5. Implementation of Strategy: Specific instructions on what strategy, management and team responsibilities with budget figures and dates included.
6. Who is the Management Team? Backgrounds of key personnel, human resource strategy and details.
7. The Financial Plan: Including profit and loss, balance sheet, analysis of break even, business ratios, cash flow forecasts etc.
With taking your time to assemble all the various components, you are well on your way to create a superb business plan layout.
