Writing the Business Plan:

Elements of the Business Plan

Every business plan submitted to the North of Boston Business Plan Competition should include each of the following areas:

• Executive Summary
• Market Analysis
• Company Description
• Organization & Management
• Marketing & Sales Management
• Product or Service
• Financials
  

Section 1

Part I: The Executive Summary

The Executive Summary is the most important section of your business plan. It provides a concise overview of the entire plan. This section tells what type of company you plan and how you will develop it. If you're expanding your company, then this explains your goals and how what you plan will take you there.

The Executive Summary is the first thing your readers see and, you hope, grab their interest. More than anything else, this section is important because it tells the reader why you think your business idea will be successful.

You should include some of the following in your executive summary:

• The Mission Statement, which briefly explains the primary concept of your business. Providing you reader with a clear picture of what your business is all about.
• Names of founders and the functions they will perform
• Number of projected employees (or additional employees)
• Location of business and any branches or subsidiaries
• Description of facilities
• Products manufactured/services rendered
• Banking relationships and information regarding current investors and amount of investment
• Summary of company growth if it's an established business looking to expand
• Summary of your future plans

Focus on your experience and background as well as the decisions that led you to start this particular enterprise. Include information about the problems your target market has and what solutions you provide. Show how the expertise you have will allow you to make significant inroads into the market. Tell your reader what you're going to do differently or better.

Part II: Company Description

This section should include a high level look at how all of the different elements of your business fit together, including information about the nature of your business as well as the primary factors that you believe will make your business a success.

Be sure to list the marketplace needs that you are trying to satisfy and include the ways in which you plan to satisfy those needs as well as the specific individuals and/or organizations that you have identified as having these needs.

Part II A:  Service or Product Line

Describe your service or product emphasizing the benefits to potential and current customers. Focus on the areas where you have a distinct advantage. Identify the problem in your target market for which your service or product provides a solution.

This includes:

• A detailed description of your product or service including information about the specific benefits of your product or service.
• Information related to your product's life cycle.
• Any relevant copyright, patent, and trade secret information
• Existing legal agreements in this section such as nondisclosure or non-compete agreements.
• Research and development activities you are involved in or are planning to be involved in

The Market Analysis section should illustrate your knowledge about the particular industry your business is in. It should also present general highlights and conclusions of any marketing research data you have collected as well as specific details of your marketing research studies. You can also include the latter in an appendix.

This section should include:

• An industry description and outlook
• Target market information
• Market test results
• An evaluation of your competition

Part III A: Marketing and sales strategy

Define your marketing strategy. This strategy might include some of the following:

• Market penetration strategy
• Strategy for growing your business.
• Distribution strategy
• Marketing communication strategy
• Sales force strategy

Part IV: Organization & Management

This section should include:

• Your company's organizational structure
• Details about the ownership of your company
• Bios or resumes of your management team
• The qualifications of your board of directors, if any

Who does what in your business? What is their background and why are you bringing them into the business as board members or employees? What are they responsible for? Provide a detailed description of each division or department and its function.

Important ownership information that should be incorporated into your business plan includes:

• Names of owners
• Percentage ownership
• Extent of involvement with the company
• Forms of ownership (i.e., common stock, preferred stock, general partner, limited partner)

In the Management Profiles section be sure to include the following so the judges can determine the level of expertise that you bring to your new business plan.

• Name
• Position (include brief position description along with primary duties)
• Primary responsibilities and authority
• Education
• Unique experience and skills
• Prior employment
• Special skills
• Past track record
• Industry recognition
• Compensation basis and levels

Section 2

Financials

The following is a list of the critical financial statements to include in your business plan packet.

• Historical Financial Data, if it's an established business
• Prospective Financial Data - what you expect to do in the next five years
• Forecasted income statements, balance sheets, cash flow statements, and capital expenditure budgets
• A brief analysis of your financial information

If you need more help creating an effective business plan, the following websites will help.

Salem State College Small Business Development Center

SBA

Online Tech Writing

How To Write a Business Plan

http://www.kauffman.org/Entrepreneurship.cfm

Also see Helpful Links for more information