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Created by FindLaw's team of legal writers and editors | Last reviewed September 21, 2022
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A business plan is an essential document for start-up businesses, for business planning, and for securing debt or equity financing. From a practical standpoint, a business plan serves as a road map for how you plan to grow the business and take it to the next level.
There are several types of business plans for different types of growth opportunities:
Different plans may have additional content based on their goals and the needs of their audience. This article will focus on the components that every type of business plan has in common.
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The U.S. Small Business Administration says that a basic business plan is typically 38-50 pages. A more complex plan could be 80 to 100 pages. The amount of detail provided in a business plan is up to you.
The following components should be in every business plan:
An Executive Summary is the first impression a potential investor or lender will have of you and your company. It needs to be good. It should succinctly describe the proposed business, the market opportunity, the background of the management team, the current stage of the business, the marketing plan, and revenue and profit expectations.
If a prospective funder reads nothing else, they will read the Executive Summary. Take extra time to get this right. Make it dynamic, interesting, and inspiring.
Consider this a standalone document. The Small Business Administration suggests an Executive Summary should be no more than four pages long.
The cover page should include the following:
The Table of Contents and Table of Appendices should refer the reader to the sections and subsections of the business plan.
I. Company Overview/Business Description
Your company overview should include:
II. Market/Industry Analysis
A good business plan includes a market analysis to assess the demand for your product or service in your target market. Most business plans contain a competitive analysis that breaks down the strengths and weaknesses of competitors and the strategies you believe will give you a competitive advantage.
Completing this section will require industry research, competitor research, and customer research. The writer's task is to show how the new business fits within the industry and its potential for success. Include:
III. Product or Service Development
For a start-up business, it will be important to provide enough information about the new product or service that the reader understands what they are being asked to invest in, including:
IV. Marketing/Sales Plan
While marketing is an important aspect of any business, it's especially important for a new business. Your business plan should include a marketing section in which you:
V. Operations Plan
As the owner of a small business, you may not have the funds to delegate the operation of your business to others. Include a business operations plan in your business plan anyway. It will allow you to set goals. In your operations section, you should:
VI. Organization Structure and Management Team
Investors invest in a business, not in products. They want to know that the business is in good hands. Information about the management team can be critical for building confidence in the company. Describe the qualifications and responsibilities of each member of the management team, including:
VII. Ownership and Capitalization
Include information about your:
VIII. Financial Management
In this section, you will provide information about business finances and financial management. The business plan will explain your sources of funding and the amount of initial equity capital you have or need.
IX. Risk Factors
Think through the risks your new company may face, such as:
X. Conclusion
In your conclusion, summarize your business goals and objectives, and express your commitment to the success of your business. Include a:
Once you have completed your business plan, it's helpful to review it with a friend, family member, or business associate. You can also speak with an experienced mentor or business counselor at the Service Corps of Retired Executives (SCORE) or Small Business Development Center (SBDC).
If you have questions about writing a good business plan or would like help with other aspects of starting a business, contact a business startup attorney near you.
For more information and resources related to this topic, you can visit FindLaw's Creating a Business Plan section.
Contact a qualified business attorney to help you navigate the process of starting a business.
We have a DIY option you can use to save time and stress.We help you:
Prefer to work with a lawyer?Find one right now.