Here’s a very simple way to start business planning today. 
To find out more about developing business strategies or analysis, read our other informative articles about strategy, and SWOT analysis.
Points to remember…
- As there are many varied types of businesses, and this is a generalist view on a business plan, ensure that you remove portions that are not relevant to your business.
- Remember to keep sentences short and punchy. Most people skim read and if this document is to be translated for investors, they will be looking for clear and succinct information.
- Try to minimise the “PR” and stick to the facts.
- Revisit this document regularly – ensure that you set aside time in your business to regularly look at how you’re performing against your strategy.
- Get your team buy-in – take key staff members through the strategy and tie their performance to the company performance.
______________________________________________________________________
BUSINESS PLAN
Date:
Company Name:
Address:
Version Number:
Confidentiality Agreement
The undersigned reader acknowledges that the information provided by _______________ in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _______________.
It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader may cause serious harm or damage to_______________.
Upon request, this document is to be immediately returned to ______________ signature___________________ name (typed or printed) ___________________ date.
1. Executive Summary
- Objective: succinctly summarise the business purpose, the product, the revenue and company value, the target market, the growth potential, the key opportunities, weaknesses, the history, the people and the point of difference.
- This should be no more than five paragraphs and be deliverable as an ‘elevator pitch’.
2. What is the Opportunity?
In four brief sentences describe what the business opportunity is….
- Why is it needed?
- How is it different?
- What is its purpose? Why is this business needed and what ‘pain’ does it fix?
- What does the market look like? Competitive landscape.
3. Objectives
- List the company objectives – remember, they must be measurable
- What are the keys to success for this company?
4. Mission
What is the vision and mission for the business? This should /could flow into a brand architecture which should include:
- Benefits – rational / emotional / functional
- Cause – what are you passionate about?
- Brand objective – what can you become world’s best at?
- Pivotal question – what is the over-riding question of the company / brand? (that is, what do you need to answer to be successful?)
- Essence – what is the heart and soul
5. Company Ownership & Directors
- Who are the company shareholders (by percentage) and directors?
- What is their experience – brief biographies on each…
6. Company Locations and Facilities
- Where are you located?
- What are the facilities required and available?
7. Products & Pricing
- What are the core products today?
- What percentage do they make up of your business revenue?
- What products are in the planning?
- How much do you charge for the product? How was the pricing determined?
- How many units do you need to sell in order to meet your growth targets?
- How do you expect pricing to change in the future? What discounting is applied?
8. Market Analysis Summary
- What does the market look like as a whole?
- Where do you fit into this?
- What is your unique point of difference?
- Who are your key threats?
- What gaps exist in your market?
- Determine customers’ channel preferences and comparing these preferences with reality.
- Examine competitors’ strategies and comparing them and their effectiveness with your own.
9. Business strategy
A business strategy is creating operational alignment between all functions and activities of a business.
- What is the business purpose?
- What is the opportunity and how are you going to realise it?
- What are the imperatives for the business in order to be successful?
10. Marketing Strategy
Marketing is not a lone ranger; it goes hand and hand with sales, and both must have clear strategies and objectives to work. Most importantly they must be a natural extension of the business strategy.
- What do we need to achieve?
- Who are we talking to?
- What do we need to say?
- Why can we say it?
- How do we want them to react?
- How will we measure success?
- What channels will we use?
11. Distribution Strategy
For product-focused companies, establishing the most appropriate distribution strategies is a major key to success, defined as maximizing sales and profits.
- What is your road to purchase?
- How do you get your product into the hands of the end user?
- What are the various ways they experience your category, the brand and the product?
- Where do people buy it?
- How do you make it easier to purchase?
- How do you distribute more efficiently?
- Feedback and insights from distributors and key suppliers – look for areas requiring improvement and ways to mitigate and strengthen.
12. Strategic Alliances
- What partnerships and supplier relationships are fundamental to the success of the business?
13. Sales Strategy
- What is your strategy for selling your products? (Link to how this differs from competitors).
- How will you measure your success?
- Include a pipeline (number of contacts, calls, meetings, proposals, etc required and the conversion rates needed to meet your sales targets).
14. Sales Forecast
- Include 12, 24 and 36 month sales forecasts, broken down by product or revenue stream (by year and month)
- Graphs preferable (like the below examples), as well as a table showing the actual data…
15. Milestones
- What are the key business milestones to reaching your objectives?
- How does this look on a timeline / calendar basis?
16. Personnel Plan
- What staff do you require to execute your plan?
- How will they be managed? Measured? What are their KPI’s (key performance indicators)?
- How is growth accounted for with staff requirements in Year 1, 2 and 3?
17. Financial Plan
- What capital is required to set the business up and to achieve the objectives?
- How will the capital be spent?
- How will the business be funded?
- How will sales short falls be managed?
- What assumptions are being made?
- What are the key financial indicators (against your milestones)?
- At what point will the business become profitable?
- How will profits be allocated? Will dividends be paid?
- What percentage of profits will be reinvested into the business?
18. Projected Profit and Loss
- What is the overall Profit and Loss anticipated in Year 1, 2 and 3.
- Show graph by year and by month
- List expenditure (see P&L spreadsheet on goodbusiness.co.nz for details on how to build this)
19. Projected Cash Flow
- Provide a table of the cashflow of the business (split by month for 36 months minimum)
20. Projected Balance Sheet
- A standard company balance sheet has three parts: assets, liabilities and ownership equity. The main categories of assets are usually listed first, and typically in order of liquidity. Assets are followed by the liabilities. The difference between the assets and the liabilities is known as equity (or net assets, net worth or capital of the company). Net worth equals assets minus liabilities.
- Show the financial position (and value) of the business in Year 1, 2 and 3
21. Dividend & Investment Opportunity (summary)
- What is the investment opportunity?
- How long will it take an investor to see a return on the money injected and profitability?
- Will dividends be paid and how often?
- What does the business require from an investor?
22. References & Sources
- List the places you have pulled data from.
