What's Included In a Business Plan ?

A successful business plan is realistic, factual and objective, presenting your goals in measurable and attainable terms. It  describes not only 'what' you are going to achieve, but also 'how' it will be achieved. There is no one "correct" format for a business plan, although most effective business plans include the same critical information. More important than a specific format, however, is the presentation of your ideas in a clear and concise manner.

Some sections, which are common to most business plans, include:

An executive summary - key points of the business plan (one or two pages);

An overview -  of the business;

A description - of the products and services;

An overview - of the industry in which the business will compete;

A marketing strategy - summarizing the product, promotion, pricing, and distribution strategies of the business;

A description - of the management and staff;

An implementation plan; and

A financial plan - including pro-forma balance sheets, income statements and cash flow statements. A balance sheet compares what your business owns to what it owes. A cash flow statement compares how much money will be coming in to how much you will be spending. An income statement compares your revenues to your expenses to see if you are going to make money.