Writing A Business Plan, A Simple Guide

• Your business plan should tell a convincing and compelling story about your business, explaining who, what, when, where, how and why.
• Your plan should be cleared and focus, not about the number of pages or style of the cover or designing.
• Your plan should define specific business objectives and goals with general parameters to guide the organization.
• Writing a business plan should inculcate logic and discipline into a business.
• A good business plan is a living document. It should be updated regularly.

Title page

Your company name

Date of the business plan

1. Table of contents

1. Table of Contents.
2. Executive Summary
3. Business Description & Vision.
4. Definition of the Market.
5. Description of Products and Services.
6. Organization & Management.
7. Marketing and Sales Strategy.
8. Financial Management.
9. Appendices

2. Executive Summary

This section should:

• Be written last
• Provide an enthusiastic snapshot of your company, explaining who you are, what you do and why
• At least less than 2 pages

At the end of this season, readers should know:

• Want to learn more about your business
• Have a basic understanding about your company

3. Business Description & Vision

This section should include:

• Mission statement (business purpose)
• Company vision (statement about company growth)
• Business goals and objectives
• Brief history of the business
• List of key company principals

At the end of this season, readers should know:

• Who the business is and what it stands for
• Your perception of the company’s growth & potential
• Specific goals and objectives of the business
• Background information about the company

4. Definition of the Market. This section should:

• Describe your business industry and outlook
• Define the critical needs of your perceived or existing market
• Identify your target market
• Provide a general profile of your targeted clients
• Describe what share of the market you currently have and/or anticipate

At the end of this season, readers should know:

• Basic information about the industry you operate in and the customer needs you are fulfilling.
• The scope and share of your business market, as well as who your target customers are.

5. Description of Products and Services. This section should:

• Specifically describe all of your products and services
• Explain how your products and services are competitive
• If applicable, reference a picture or brochure of your products, which would be included in the plan’s appendix

At the end of this season, readers should know:

• Why you are in business
• What your products and services are and how much they sell for
• How and why your products & services are competitive

6. Organization & Management. This section should:

• Provide a description of how your company is organized as well as an organization chart, if available
• Describe the legal structure of your business (proprietorship, partnership, corporation, etc.)
• Identify necessary or special licenses and/or permits your business operates with
• Provide a brief bio description of key managers within the company

At the end of this season, readers should know:

• The legal form of ownership for your business
• Who the leaders are in your business as well as their roles
• The general flow of operations within the firm.

7. Marketing and Sales Strategy. This section should:

• Identify and describe your market – who your customers are and what the demand is for your products & services
• Describe your channels of distribution
• Explain your sales strategy, the (4Ps) specific to pricing, promotion, products and place.

At the end of this season, readers should know:

• Who your market is and how you will reach it
• How your company will apply pricing, promotion, product diversification and channel distribution to sell your products and services competitively

8. Financial Management. This section should include:

For new business, you will need the following:

• Estimate of start-up costs
• Projected balance sheet (1 year forward)
• Projected income statement (1 year forward)
• Projected cash flow statement (12 months forward)

For existing business, you will need the following:

• Balance sheets (last 3 years)
• Income statements (last 3 years)
• Cash flow statement (12 months)

If Applying for a Loan

• Current personal financial statement on each principal
• Federal tax return for prior year

At the end of this season, readers should know:

• Have a good understanding regarding the financial capacity and/or projections for your company.

9. Appendices

This section should include as attachments:

• Company brochures
• Resumes of key employees
• List of business equipment
• Copies of press articles and advertisements (if available)
• Pictures of your business location and products (optional)
• Information supporting the growth of your industry and/or products (optional)
• Key business agreements, such as lease, contracts, etc. (optional)

Fasakin James is a Monitoring and Evaluation Officer at The Ark Shore Konsults (T.A.S.K.). He holds a Master’s degree in Agricultural Economics from the University of Ibadan, Nigeria.