Writing A Business Plan: The Parts of a Business Plan.  Basic? Yes. Boring? Not by a Loooong Shot

Yep, the parts of a business plan are pretty the same for all business plans.

Here they are.

COVER

Is the cover of the business plan really part of it? Good grief, guys. Yes, it is. Just as the cover of any magazine is part of it. Or the cover of any annual report. It's absolutely true that the same chocolate eclair can be inside a plain box, but I'll pick the box that says "Scrumptious, made just for you, utterly delicious French chocolate eclair."

EXECUTIVE SUMMARY

This is the one page masterpiece that tugs at the reader's interest. Include important contact information, as well as the nature of the loan/investment.

TABLE OF CONTENTS

Make it easy for the reader to find the information he wants.

INFORMATION ON THE COMPANY ITSELF

• When was it formed?
• What kind of company is it?
• If it is a corporation, how many shares are issued? To whom?
• If it is a partnership, who's involved?
• Who formed the company?
• If you aren't the founder, how did it come to be yours?
• Who is presently involved? What is the nature of their involvement?

Add any other information that seems pertinent.

INFORMATION ON THE INDUSTRY

Here is where BizMiner is worth its weight in gold.

• Show how the industry is growing.
• Show how your company fits into the industry.
• Include charts to visually show strength of industry.
• Include demographic information.

Bankers and lenders like figures and statistics. It's easy for them to compare and analyze. It's a whole lot harder to analyze your character. So give them solid figures. They will see the BizMiner stats whether you include them or not. So include them. And show them in a manner that benefits you.

BIOGRAPHICAL INFORMATION ON PRINCIPALS

While venture capital companies consider the strength of the management team the most important component of the business, this section by itself is not necessarily the most important. They will see the strength of the team in the Industry Information, the Marketing Plan and the Financial Summaries.

This section is to give them a notion of who they are talking with.

Most business plan writers tell you to write a paragraph on each officer. I don't. I tell you to write a page on each principal. That page is not a bio. It is a summary of accomplishments. If you haven't got a page of accomplishments, maybe you've got the wrong management team.

MARKETING PLAN

• So what makes you think you can promote this idea or product or service?
• How will you go about it?
• What will it cost?
• What are other doing, and how can you compete with them?

If you have a history of successes, this is the place to shout about them.

FINANCIAL DOCUMENTS

This is still one of the most important parts of a business plan. For existing companies, the rule of thumb is that you summarize by year the past 5 - 10 years, depending on your industry. Then project as for new companies.

For new companies, project quarterly for the first year or two, then annually until the loan is comfortably paid back, or the investment has made a profit.

The more you can put into charts for easy reference, the better. The parts of a business plan need to look sharp, be concise, and provide all pertinent information.

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