What Information Should Your Business Plan Include?

A business plan does not have to be lengthy in order for it to be effective.  On the contrary your business plan should provide as much relevant information as imaginable, while being as brief and concise as possible.  Truly great business plans, will tend to convey as much information using the fewest words possible.

Business plans should be able to answer a set of basic questions including why your business exists, who your customers are, where and how your business will operate, what are your products and services, what is the market, how will your business find new customers, and who are your main competitors.

Your plan should also describe the background of the management team and demonstrate why your team will be effective in running, maintaining and developing your company.  The business plan should also summarize any shortcomings or challenges that your business faces and detail the plans for overcoming those challenges.

Although it should not be considered an all-inclusive list, a well written business plan should include some of the following features:

Executive Summary, Table of Contents, Mission and Vision, Company Description, Products and Services, Industry Analysis, Target Market, Marketing and Sales Plan, Competitive Analysis, Management Team, Current Shareholders List, Operational Plan, Personnel Table, Financial Projections, Funding Requirements and Use of Funds, Exit Strategy, and Appendices

A business plan should include clear, quantifiable metrics, or milestones, that are set up to gauge and evaluate how your business will accomplish its goals.  These metrics and milestones are essential for both business owners and investors to evaluate the performance of their strategies and forecasts.  The presentation of these metrics, along with the inclusion of other financial forecasts, will allow investors to gauge how successful and profitable your business is, as well whether or not your goals are feasible.

It is a necessity of DC Venture Services that your business plan include past financial statements for up to three years, if applicable, and projected sales forecasts and financial statements for no less than three years, but no longer than five years.  Along with your sales forecasts, your plan should also contain past and projected financial statements such as past and projected balance sheets, profit and loss table, income statements, and statement of cash flows.

All of the data that is presented within your business plan should be factual and it should be able to be backed-up and confirmed through third party sources.  The ability for a business to be able to provide back-up, references, or sources to the data points that are presented within the plan should be considered mandatory.

A concise, yet detailed business plan will assist both employees and investors over the lifespan of your business – allowing your business to achieve its current and future goals.