Part 2: The Business Plan

The Necessity of a Business Plan:

First and foremost, a business plan gives FOCUS to an entrepreneurial endeavor. A business plan outlines a set of business goals along with supporting reasons as to why these goals are attainable. It describes the marketing and financial plans that help achieve the stated goals through implementation. This includes breakdowns of costs and revenues, and insights into management, marketing, and business development strategies. [Is it achievable?]

*Every business is either filling a void in the market or copying someone else and doing it better.

The Components of a Business Plan A. Executive Summary

i. This section is completed last. ii. Accurately reflect your strategy. Entice the reader to look at specifics. iii. How can your business be simplified to a financial equation? [Such as $ in sales, # of clients, and/or % of market.] [1-2 pages, most important]

B. Business Description / Introduction

[approximately 1 page]

i. Who, What, Where, When, Why --- Why is this business starting? ii. Is this business linked mainly to one individual? Tell us about him/her. iii. The reader should understand what the business does, and purposes/goals. iv. Do you have a timeline of expectations for growth and reaching benchmarks?

C. Products & Services

[approximately 1-2 pages]

i. Definition of Services, Products, including costs, rates, etc. ii. Include photos, mock-ups or examples of your product. iii. Proprietary Position Can you be / Are you protected legally?
1 | Buffalo State College SBDC, 716-878-4030 (created by T. Maggiotto, 2011)

D. Market Analysis & Competition

[approximately 1-2 pages]

i. Description of total market, target market, and competition. ii. Outline opportunities that may exist only for you (partners, connectors, etc.) iii. What separates you from competition, etc.?

E. Marketing & Promotions

[detailed, 1-2 pages]

i. How will you promote your business on an on-going basis? [Public Relations, Advertising, Websites, Newsletters, Social Media, etc.] ii. How will you price, sell, distribute and follow-up on your products/services? iii. Is your business seasonal? How will you adjust, plan for these cycles?

F. Management Structure

[approximately 1 page]

i. Form of business organization, legal entity ii. Resumes of key personnel, organizational chart and responsibilities iii. Staffing and Operations plan/schedule iv. Facilities planning / capital improvements (phases)

G. Financials

[series of worksheets, tables] i. If seeking a loan, you will be asked to provide 2-years of IRS tax returns. ii. Cash Flow Projections (future) for 2-3 years after start date. iii. Income Statements, Capital Expenditures, Balance Sheets, etc. iv. Explain projections, understand some key business ratios. v. Break-Even Analysis*

H. Attachments / Appendices
i. Flyers, pamphlets, and other additional information.

At the end of this process, the plan should outline clear implementation steps, and the necessary financial forms help you understand your progress and growth on a monthly, quarterly, and yearly basis. If you stray from your business plan, it could mean its time to re-calculate basic assumptions!
2 | Buffalo State College SBDC, 716-878-4030 (created by T. Maggiotto, 2011)