1. Executive Summary
2. Business/Industry Overview
3. Market Analysis and Competition
4. Sales and Marketing Plan
5. Operating Plan
6. Financial Plan
7. Appendices and Exhibits

This is the last item to be written, but the first to be presented. The intent is to provide the reader with a sense of confidence in the ability of the company to meet its goals. It should be optimistic and create interest in the reader to find out more. There should be no more than two pages in length with brief snapshots of other summaries within the plan. The following information should be included:

• Mission statement
• An introduction to the company culture and management
• Product – goods and/or services
• Description of the target market (customer base)
• Competition
• Financial projections
• Financial needs in preparation for investment

This should cover demographics, economics, culture, and governmental influences. Describe how the business fits into the industry as comparable in product (good and/or service) and who the competition is. Next, describe how you will compete in this industry in a manner that is unique to the competition.

For this last item, consider what area in the iron triangle would provide the greatest advantage: quality, speed, or price. Customers often will select a company based on whether it is “good, fast, or cheap.” Bear in mind that you can offer two of these to clients but not all three. For example, you may offer:

• Quality and Speed, but keep prices higher:
  • Jimmy Johns
  • Apple
  • Tesla
• Speed and Price, but sacrifice Quality:
  • Walmart
  • McDonalds
  • Motel 6
• Price and Quality, but sacrifice Speed:
  • Wild Sage
  • Massage Envy
  • CustomMade (Engagement Rings)

Include an assessment of the competition. As a follow up, include an analysis of how the strengths of competitors will be a challenge and how the weaknesses of competitors will be opportunities for market entry. Describe the target market in their environment, whether geographic or virtual, ensure the size of the market, and provide a synopsis of the need for goods and/or services.

Customers and clients will need to have a reason to purchase products with your company. This is where sales and marketing provide clarity and direction. Factors that should be considered include advertising, pricing strategy, sales and distribution, marketing platforms.

• Product or Service Offerings
  • This is a description of your good or service and how it is an advantage to the client/customer. Be sure to specify how your product is unique in the market and consider addressing this information against specific competitors.
• Pricing Strategy
  • Your pricing must be high enough to cover operating costs, but low enough to attract clientele. The breakeven analysis will provide information as a starting point
• Sales and Distribution
  • This block will describe how you will transfer products to your client base in consideration of transactions and delivery mechanism(s). Sales considerations include wholesale vs. retail, type of packaging, shipping, and payment gateways.
• Advertising
  • Describe how you will distribute your products to the customer (if applicable). Will you be selling wholesale or retail? What type of packaging will be required? How will the product(s) be shipped? What methods will be used for payment?
• Advertising and Promotion
  • Consider different types of media used:
    • Print:
      • Business cards
      • Rack cards
      • Flyers
      • Brochures
    • Electronic:
      • Website
      • App
      • Social Media
    • Other channels:
      • Billboards
      • Newspapers

In this section, the legal structure, and management hierarchy are identified along with staffing requirements.

• Ownership Structure
  • Possibilities include
    • Corporation
    • Partnership
    • Sole Proprietorship
    • LLC
  • With the exception of Sole Proprietorship, list ownership percentages
• Management Team
  • This item addresses titles, duties, and how each position will be compensated.
• External Resources and Services
  • These may include
    • Bookkeepers/Accountants
    • Lawyers
    • Consultants
• Human Resources
  • Similar to requirements for the management team, address titles, duties, and compensation. This needs to be identified for both employees and contractors.
• Board of Directors
  • Identify roles and duties of each board member position.

Section 6: Operating Plan

This section addresses the physical requirements for operating the business such as office space, furniture, overhead, inventory, labor, and more. This will be a largely different structure for freelancers who work from home than for agencies for in-house operations.

•  Development (if applicable)
  • This item will address the current state of operations and projected status.
• Production:
  • In order to run a successful operation, we must have an idea of how long it takes to produce a “unit,” which is a generalized term that refers to a measurable portion of a good or service.
• Facilities
  • Provide a description of the physical location of the business. This includes businesses that operate virtually.
• Staffing
  • This item covers the hiring process and relationship of the employee to the organization (such as contract, full-time, part-time, etc.)
• Equipment
  • Include a list of any specialized equipment needed. Include the cost and whether it will be leased or purchased and the sources.
• Supplies
  • If materials are needed to produce a customer-end product these will be identified here.

Section 7: Financial Plan

In consideration of gaining external funding from investors, the financial plan should be considered as the most important component of the business plan as a whole. This section involves accounting documents including projected income statements, cash flow statements, and balance sheets. Underestimate revenues and overestimate expenses.

• Income Statements
  • Projected revenues, expenses, and profit
• Cash Flow Projections
  • Shows anticipated monthly cash revenues and expenses, ultimately demonstrating the financial health of the organization
• Balance Sheet
  • This demonstrates a summary of assets, liability, and equity
• Breakeven Analysis
  • Demonstrates to investors the level of sales needed to make a profit

Section 8: Appendices and Exhibits

Appendices contain any information that may support other sections of the business plan. Possible items include:

• Business owner credit history
• Market research and competitor analysis
• Resumes
• Industry information
• Product information (goods and/or services)
• Facility plans (office, warehouse, etc.)
• Mortgage or lease documents
• Marketing materials
• List of references