How to Write a Business Plan

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Though a written business plan is not required when applying for a merchant cash advance from MRI (because there are no restrictions on how our advances can be used), other types of lenders, particularly banks, will require small business owners to submit a business plan when applying for a business loan.

A business plan is not something that is reserved for startups.  It can be used in all stages of business ownership, especially when planning to embark on a new endeavor, such as expansion, renovation, advertising, etc.

Every business plan will vary, as no two businesses are identical.  Nevertheless, there are certain components that every business plan should have.  “…generally a plan will include components such as descriptions of the company, product or service, market, forecasts, management team, and financial analysis,” writes small business expert, Tim Berry.

Use the following basic outline, developed by the Small Business Administration, to get started on your business plan, then adjust as needed.

Executive Summary: Provides a concise overview of your company along with company history.

Market Analysis: Illustrates your knowledge of the industry your business is in.

Company Description: Describes your business, as well as the factors that you think will help make it successful.

Organization & Management: Includes explanation of your company’s structure, along with profiles and qualifications of owners/management/board of directors.

Marketing & Sales Strategies: Defines your marketing strategy.

Service or Product Line: Describes the product(s) and/or service(s) that your company offers, with emphasis on the benefits to current and potential customers.

Funding Request: Requests specific amount of funding that you will need for your business, how the funds will be used, etc.

Financials: Shows how you’ve specifically allocated funds.

Appendix: This should not  be included in your business plan.  However, it should be available to certain lenders, creditors, etc. who will need access to the information in your appendix.

The appendix should include:

• Credit history (personal & business)
• Resumes of key managers
• Product pictures
• Letters of reference
• Details of market studies
• Relevant magazine articles or book references
• Licenses, permits, or patents
• Legal documents
• Copies of leases
• Building permits
• Contracts
• List of business consultants, including attorney and accountant

Use the links below for more advice on writing a business plan:

Bplans – How to Write a Business Plan

My Own Business – Session Two:  Business Plan

Microsoft – How to Write  a Business Plan

eHow – How to Write a Business Plan