What goes in a business plan? The body can be divided into four distinct sections:

1. Description of the business
2. Marketing
3. Finances
4. Management

Addenda should include an executive summary, supporting documents, and financial projections.

Although there is no single formula for developing a business plan, some elements are common to all business plans. They are summarized in the following outline:

Elements of a Business Plan

1. Cover sheet
2. Statement of purpose
3. Table of contents
   1. The Business
      1. Description of business
      2. Marketing
      3. Competition
      4. Operating procedures
      5. Personnel
      6. Business insurance
   2. Financial Data
      1. Loan applications
      2. Capital equipment and supply list
      3. Balance sheet
      4. Breakeven analysis
      5. Pro-forma income projections (profit & loss statements)
         Three-year summary
         Detail by month, first year
         Detail by quarters, second and third years
         Assumptions upon which projections were based
      6. Pro-forma cash flow
   3. Supporting Documents
      For franchised businesses, a copy of franchise contract and all supporting documents provided by the franchisor
      Copy of proposed lease or purchase agreement for building space
      Copy of licenses and other legal documents
      Copy of resumes of all principals
      Copies of letters of intent from suppliers, etc.

Sample Plans

One of the best ways to learn about writing a business plan is to study the plans of established businesses in your industry.