Typical components of a business plan

operating plan

A section that details the operations of the business from acquiring materials and supplies to the distribution of the products and/or services to customers.

company description

A section that includes details about the business including its age, history, legal form of ownership (sole proprietorship, partnership, or corporation), industry classification (retail, wholesale, manufacturing, services), structure, location, the number of employees, and its primary function.

marketing plan

A section that includes plans for maintaining and building the customer base , the benefits to the customer of choosing this business over competitors pricing info, and promotion and advertising plans.

funds required and expected uses

A section that is necessary when seeking investors or bank financing and shows detailed plans for the use of any funds and plans for repayment if a loan is necessary.

market anaylsis

A section that provides detailed info and analysis of the conditions and trends in an industry including the target market, and a detailed analysis of the competition.

description of products and services

A section that provides detailed information about the products and/or services offered to customers.

Executive summary

A section that summarizes all of the sections of the business plan. The Executive summary is always the first section in a business plan and must immediately capture the attention of the reader and entice him/her to inquire further and read the remainder of the plan.

supplemental attachments

In addition to the standard components discussed above, some business plans include additional documents and marketing materials to provide the reader with a better vision of the business.

Cover page

The cover page usually includes the company name and address info, the author of the business plan, and the date the business plan was prepared.

owners credentials (resume)

While not always included, some business plans include a resume of the owner. This provides readers with the professional background and work experience of the owner of the business.