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Estate Planning

What goes into a business plan?

There is no single formula for developing a business plan, but some elements are consistent throughout all business plans. Your plan should include an executive summary, a description of the business, a plan for how you will market and manage your business, financial projections and the appropriate supporting documents.

To help you get started in writing your business plan, we have summarized the essential elements in the following outline:

Elements of a Business Plan

    1. Cover sheet
    2. Executive summary (statement of the business purpose)
    3. Table of contents
    4. Body of the document

      A. Business
        1. Description of business
        2. Marketing
        3. Competition
        4. Operating procedures
        5. Personnel
        6. Business insurance

      B. Financial data
        1. Loan applications
        2. Capital equipment and supply list
        3. Balance sheet
        4. Breakeven analysis
        5. Profit and loss statements
        6. Three-year summary
        7. Detail by month, first year
        8. Detail by quarters, second and third year
        9. Assumptions upon which projections were based
        10. Pro-forma cash flow

      C. Supporting documents
      1. Tax returns of principals (partners in the business) for the last three years, personal financial statements (all banks have these forms)
      2. Copies of franchise contract and all supporting documents provided by the franchisor (for franchise businesses)
      3. Copies of proposed lease or purchase agreement for building space
      4. Copies of licenses and other legal documents
      5. Copies of resumes of all principals
      6. Copies of letters of intent from suppliers, etc.



 

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