Business Resources

Business Plans

Business plans are a working document that provides information required by lenders as well as others.

A business plan should include the following information:

1. An executive summary (overview of the business plan),
2. General description of the business (what type of business, why your products & services are needed and the chance for success),
3. Products & services (what will your business offer),
4. Marketing (who is your target market),
5. Management (who will be involved in the business),
6. Legal description (what type of business - sole proprietorship, partnership, s corp etc.),
7. Finances (how much money is needed to start the business and where will those funds come from),
8. Income & expense projections and overal operations (what systems will be used).

The summary is the most important part and some will not read past the first part. The plan should not be more than ten pages long, but will vary from plan to plan and business to business.

Because a business plan is a working document, you should make necessary changes every so often.

A business plan will establish your written goals & objectives and should measure the following:

1. Is it achievalbe?
2. Is it realistic?
3. Is it quantifiable?
4. Does it include your short & long term goals?
5. Is it prioritized?
6. Is it action oriented?
7. Is it coordinated?
8. It is time relevant?

Once goals are set, than strategies and actions plans can be implemented.

What should the business plan contents look like?

1. Cover Sheet with business information, an executive summary
2. Executive Summary - Statement of Purpose
3. Table of Contents
4. The Business (description, historical development, product/service lines, market segment, competition, location, operation, marketing)
5. Management (business format, organizational chart, past experience of management team)
6. Finance (project, estimated cost, breakdown of funds, lending institution participation, equity participation, projections & assumptions, personal financial statement
7. Production (describe how products and or services will be accomplished - what the location looks like - who your suppliers will be - what labor will be needed, capital equipment - what is necessary to operate the business, supplies - what day to day supplies & services will you need)
8. Supporting Documents - personal resumes, personal financial statements, cost of living budget, letters of reference, letters of intent, job descriptions, copies of leases, contracts, floor plans etc.)

Sample Business Plans:

http://www.gvsu.edu/misbtdc/images/manufacturing_busplan.pdf

http://www.gvsu.edu/misbtdc/images/Chuck%20Wagon%20Barbecue.pdf

http://www.gvsu.edu/misbtdc/images/service_busplan.pdf

Guide to starting a small business: http://www.gvsu.edu/forms/misbtdc/2007%20Guide%20to%20Starting.pdf

Information taken from the Michigan Small Business & Technology Development Center