business plan outline

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A business plan is your model for how you do business. It is a document that anyone can read to understand where your business is, where you hope to be in the future, and what steps you plan to take to get there. Here is a basic outline to follow when writing your business plan.

Step 1 – Define Your Business

The first part of your business plan involves the “who, what, when, where, why and how” of your business. Specifically:

* Business logistics: What type of business are you setting up? What is its legal structure? Where is it located?
* Your mission and purpose: Why are you in business? What is your business mission and purpose?
* Your business goals: What are your business goals? What do you want to accomplish in the next year? 5 years?
* What you sell: What products and services do you sell? What is it that you do, specifically, that provides enough value that people will pay for your products and services?
* What resources you have: What resources do you currently have (money, time, employees, vendors, technology, people in your network, your strengths and talents, opportunities, threats facing your business)?
* Your organizational structure: How many people work for your company? Who is responsible for what roles? What positions will you need to fill? What are their salaries?

Step 2 – Create Your Marketing Plan

The next part of your business plan focuses on how you will market your business. Specifically, who will you target, why your business is uniquely qualified to serve those customers and clients, and what marketing channels you will use to reach prospects.

* Who you serve: What types of customers and clients do you serve? Where can you find them? What is their biggest pain or problem that your product or service solves for them? How does your product or service enrich the lives of your customers and clients?
* Who your competitors are: Who else serves your customers? What are their strengths and weaknesses? What are they doing to attract customers? How is their product or service better than yours? How is it worse than yours?
* Why you are unique: What are your strengths and weaknesses? What do you do better than your competitors? Why should customers buy from you rather than all the other choices they have? How do you explain what it is you do to your prospects?
* Your marketing strategy: How do you market your business to get new customers and clients? What marketing channels will you use to reach prospects? How much will you spend? What aspects of your marketing plan will you do internally? Externally?

Step 3 – List Your Financials

Finally, list your financials, including how much you need to get your business up and running as well as what types of revenues and expenses you project in the short- and long-term.

* Your start-up costs: How much money do you need to start the business? How much do you need for office rent, supplies, mailings, furniture, marketing, etc?
* Your revenues: How do you currently make money? Which products and services do you sell the most of? What prices do you charge?
* Your expenses: What are your expenses? How much money do you need to make each month to break even?
* Projections: How much money do you project your business will bring in within 6 months? One year? Three years?

By following these three steps, you will have put together a solid business plan that covers the basics of any successful business.

Looking for ways to market your small business? Download your free marketing plan for small-business owners today. This hands-on workbook covers the 6 steps for creating your marketing strategy and includes a fill-in-the-blank marketing plan template you can use to craft your monthly marketing plan.