Business Plan Format
The following sample format provides useful guidelines for business plan writers, and the major sections correspond to the Table of Contents laid out by Jeffrey Timmons and Stephen Spinelli (New Venture Creation, 6th edition, McGraw Hill Irwin, 2004, p. 403). The questions in each major section correspond to those recommended in the University of Maryland Business Plan Competition.
Keep in mind that the following outline provides suggestions and recommendations for writing a business plan. Since a business plan is a communication tool and since each new venture's innovation, product, or service is unique, you should organize your business plan in a way that best expresses and explains your ideas and concepts.
The following guidelines are meant to help you think about what is important to include rather than to serve as a rigid format. To get a sense for the variety of ways that a complete business plan can be written, please go to the Resources link on the toolbar on the right.
Sample Business Plan Format and Sample Questions for Each Section
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EXECUTIVE SUMMARY
Can you summarize everything else that follows in two or three pages?
This should be the last section written after everything else is completed.
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THE COMPANY AND ITS PRODUCT(S) OR SERVICE(S)
What is the new venture's product, service, or process? What need is satisfied or what problem is solved?
What is the business model (what is done to generate revenue and profits)?
What is the value proposition (i.e., the benefits to customers)? Why will customers buy this product or service?
What is the business strategy? How will the business model and value proposition be achieved?
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INDUSTRY AND COMPETITORS
Who are the existing and/or expected competitors and what is their market share?
What is the competitive advantage: what does the new venture offer that is better than or different from what competitors or substitutes offer?
Do any barriers to entry exist against competitors?
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MARKET RESEARCH AND ANALYSIS
Who are the customers?
What is the size of the target market?
What is the growth potential of the market?
Will customers buy this product or service? (Based on market research.)
What is the new venture's expected market share and when will it be obtained?
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MARKETING PLAN
Is there an effective sales and marketing plan?
What is the overall marketing strategy in terms of: pricing, sales tactics, advertising and promotion?
How will the product or service be distributed to customers?
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DESIGN, DEVELOPMENT, & OPERATIONS PLAN
Where will the product or service be produced?
How will the product or service be produced or offered to the market?
What is the new venture's stage of development: conceptual, R&D, prototype, or test market?
Does this company posses intellectual property or other assets?
Is there unique and valuable information that only this company has?
Can this knowledge be protected?
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MANAGEMENT TEAM
Who are the team members?
What value does each add to the new venture?
What are their prior accomplishments?
What are their skills and areas of expertise?
What is their prior experience?
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CRITICAL RISKS AND ASSUMPTIONS
What critical risks face the new venture that could affect its performance and your analysis?
What assumptions have been made in the market and competition analysis?
What assumptions underlie the financial plan?
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THE FINANCIAL PLAN
What is the new venture's revenue and profit model?
Will revenues be derived from subscriptions, transaction fees, usage fees, advertising, licensing, or product sales?
What are the pro forma income statements, balance sheets, and cash budgets?
What are the gross and operating profit margins?
How many months will it take to breakeven and to obtain positive cash flows?
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PROPOSED COMPANY OFFERING
How much is the desired financing?
What type of offering will be made to investors?
What will the capitalization table of the new venture look like?
What will be the use of the funds being raised?
