Many people are under the misconception that to write an effective business plan, you need to astound your potential investors with fancy jargon, complex corporate speak and impressive promises. But in truth, your investors will not be looking at your writing skills, but rather at how practical and attainable your business goals are.

Below is a basic layout for your business plan and what should be included in it. You will need to customise this to suite your business needs. Remember to include the strengths of your business as well as any potential problems and challenges that you may face, and how you are going to address these.

The Summary

As the heading suggests, the first section of your business plan should sum up the important elements of the plan in order to convince the investor to read further. The summary should include:

	The name of the business
	The address of the business
	A description of the product / service, market and competition
	A description of the management team
	Brief financial projections
	The amount of financial assistance required and the purpose thereof
	Business goals

The Company

In this section you would provide some background information on the company, including:

	A general description of the company and its products / services
	History of the company, including:
	o Name, date and place of formation o Legal structure o Any important changes in ownership, structure, products, acquisitions

The Product / Service

Discuss the current or planned product / service, including:

	Significance of the product and sales projections where available
	An evaluation of the use, quality and performance of the product / service
	A comparison of your product / service to those of competitors
	The demand for product / service and what will affect this demand

The Project

If you are seeking finance for a particular project, discuss it here in terms of reason, purpose and cost.

Management

Include in this section a breakdown chart of the company and include information on:

	Senior staff
	o Responsibilities o Skills and experience in relation to business o Current salary packages o Proposed additions to senior staff
	Other employees
	o Number at year end, total payroll expenses o Breakdown of staff into departments o Proposed additions to other staff

Ownership

	Names, addresses, business affiliations of prime shareholders
	Management involvement of shareholders
	Main non-management shareholders
	Names of those on board of directors, area of expertise and role
	Amount of stock presently authorised and issued

Marketing Strategy and Analysis of Market

	Describe the industry including:
	o Outlook o Primary markets o Current and projected size o Characteristics and trends
	Describe the major customers, including:
	o Names, locations, products / services sold to customers o Percentage of annual sales volume for each o Duration and condition of contracts in place
	Describe the market's major segments, including:
	o The main participants in the market and their performance o Target market o Requirements of customers and ways to meet these o Buying habits of customers
	Describe your competition in some detail and how you plan to compete in the market
	Describe your prospective customers
	Describe your company's marketing activities:
	o Overall marketing strategy o Pricing policy o Method of selling, distributing and servicing product o Geographical penetration into the market, product support, advertising, PR and promotions
	Describe your selling methods, including how you identify possible customers and how you contact decision makers. Also discuss your sales terms, channels, staff, etc.

Technology

In this section you will discuss the developmental stage of your product, any patents, licenses or copyrights pending, how future technologies may affect your product, any new products still pending, any legal requirements relevant as well as any present and future research and development.

Production / Operating Plan

Here is where you would go into more detail about your product in terms of how the company produces or delivers the product or service. Include:

	Premises - own/rent, size, location, expansion capabilities, equipment needed, future plans to improve
	Name and address of suppliers, as well as usual purchase and contract agreements
	Current and planned workforce - amount, stability, union membership, benefits
	Any technologies or skills needed to develop and manufacture products
	A breakdown of cost for materials, labour and manufacture of each product
	Manufacturing process - discuss production or operation advantages, standard product costs at various volume levels, and present a work schedule for the next one to two years

Financial

Include all relevant financial and legal information in this section:

	Auditor name and address
	Lawyer name and address
	Bank name, address and contact
	Controls - cost system and budgets
	Present and future cash requirements and utilisation
	Amount to be raised from debt and equity
	Financial statements and five year forecast:
	o Profit and loss / income statement by month o Year end balance sheets o Cash budgets and cash flow projections o Capital budgets for equipment and other acquisitions o Manufacturing and shipping plan

If you are requesting funding you must include the following:

	A funding request including
	o Amount o Capitalisation o Use of funds o Future financing
	Current financial statements and those for the past three years
	Monthly cash flow financial projection including proposed financing, for two years
	Projected balance sheets, income statement and statement of change in financial position for two years including proposed financing

Conclusion

Sum up your Business Plan in a few sentences and make your final statement.

Adapted from "Business Plan Checklist" from bizoffice.com

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