A good business plan will include most of the following items:

1. An Executive Plan 

This is a summary of the business plan covering all the key points.  This should not exceed one page.

2. The Business

A.)  Description of the Business – include the name, mission statement, location, legal format, business owners, etc.

B.)  Your Product or Service – describe the product(s) and/or service(s) you intend to sell.  Include your value proposition, technical information and any pending contracts or orders.

C.)  Marketing and Sales Plan – describe the market, industry, potential customers, potential alliances, etc.  Include market statistics.  Describe how you intend to sell to your customer base, i.e. mail order, internet, etc. Describe how customers make their buying decision and how you intend to protect your future customer base.  Attach any marketing materials already prepared in the appendix.

D.)  Competition – describe your main competitors in terms of both companies and products.

E.)  Management Team – which is the most likely predictor of the business’ success.  Provide an organizational chart with biographies of the key personnel involved.  Resumes should be included as an appendix.  You will also want to discuss any key advisors involved.

F.)  Description of any propriety licenses, patents, etc.

3. Financial information

A.)  Financial Statements – including a current income statement and balance sheet.

B.)  Forecasted Income Statement and Cash Flows – including projected income statements and cash flows for the next three years.

C.)  Assumptions – for forecasted information, include descriptions and analysis of significant assumptions.

D.)  Capital Requirements – including the amount and timing of cash infusions needed to fund the business.

E.)  Tax Returns – include the prior year’s tax returns for the business (if any).

F.)  Current personal financial statements and three years of tax returns for the business owners.

Putting this together will take some time.  However, this process will help formulate your business and get all parties on the same page.

If you would like to discuss this article, please contact Jamie Downey at 800-849-6022 or JMDowney@DowneyCoCPA.com.