Business Plan Example and Template

Learn how to create a business plan

What is a Business Plan?

A business plan is a document that contains the operational and financial plan of a business, and details
how its objectives will be achieved. It serves as a road map for the business and can be used when
pitching investors or financial institutions for debt or equity financing.

Business Plan - Document with the words Business Plan on the title

A business plan should follow a standard format and contain all the important business plan elements.
Typically, it should present whatever information an investor or financial institution expects to see
before providing financing to a business.

Contents of a Business Plan

A business plan should be structured in a way that it contains all the important information that
investors are looking for. Here are the main sections of a business plan:

1. Title Page

The title page captures the legal information of the business, which includes the registered business
name, physical address, phone number, email address, date, and the company logo.

2. Executive Summary

The executive summary is the most important section because it is the first section that investors and
bankers see when they open the business plan. It provides a summary of the entire business plan. It
should be written last to ensure that you don’t leave any details out. It must be short and to the point,
and it should capture the reader’s attention. The executive summary should not exceed two pages.

3. Industry Overview

The industry overview section provides information about the specific industry that the business
operates in. Some of the information provided in this section includes major competitors, industry
trends, and estimated revenues. It also shows the company’s position in the industry and how it will
compete in the market against other major players.

4. Market Analysis and Competition

The market analysis section details the target market for the company’s product offerings. This section
confirms that the company understands the market and that it has already analyzed the existing market
to determine that there is adequate demand to support its proposed business model.

Market analysis includes information about the target market’s demographics, geographical location,
consumer behavior, and market needs. The company can present numbers and sources to give an
overview of the target market size.
A business can choose to consolidate the market analysis and competition analysis into one section or
present them as two separate sections.

5. Sales and Marketing Plan

The sales and marketing plan details how the company plans to sell its products to the target market. It
attempts to present the business’s unique selling proposition and the channels it will use to sell its goods
and services. It details the company’s advertising and promotion activities, pricing strategy, sales and
distribution methods, and after-sales support.

6. Management Plan

The management plan provides an outline of the company’s legal structure, its management team, and
internal and external human resource requirements. It should list the number of employees that will be
needed and the remuneration to be paid to each of the employees.

Any external professionals, such as lawyers, valuers, architects, and consultants, that the company will
need should also be included. If the company intends to use the business plan to source funding from
investors, it should list the members of the executive team, as well as the members of the advisory
board.

7. Operating Plan

The operating plan provides an overview of the company’s physical requirements, such as office space,
machinery, labor, supplies, and inventory. For a business that requires custom warehouses and
specialized equipment, the operating plan will be more detailed, as compared to, say, a home-based
consulting business. If the business plan is for a manufacturing company, it will include information on
raw material requirements and the supply chain.

8. Financial Plan

The financial plan is an important section that will often determine whether the business will obtain
required financing from financial institutions, investors, or venture capitalists. It should demonstrate
that the proposed business is viable and will return enough revenues to be able to meet its financial
obligations. Some of the information contained in the financial plan includes a projected income
statement, balance sheet, and cash flow.

9. Appendices and Exhibits

The appendices and exhibits part is the last section of a business plan. It includes any additional
information that banks and investors may be interested in or that adds credibility to the business. Some
of the information that may be included in the appendices section includes office/building plans,
detailed market research, products/services offering information, marketing brochures, and credit
histories of the promoters.
Business Plan Template - Components

Business Plan Template

Here is a basic template that any business can use when developing its business plan:

Section 1: Executive Summary

Present the company’s mission.

Describe the company’s product and/or service offerings.

Give a summary of the target market and its demographics.

Summarize the industry competition and how the company will capture a share of the available market.

Give a summary of the operational plan, such as inventory, office and labor, and equipment
requirements.

Section 2: Industry Overview

Describe the company’s position in the industry.

Describe the existing competition and the major players in the industry.

Provide information about the industry that the business will operate in, estimated revenues, industry
trends, government influences, as well as the demographics of the target market.

Section 3: Market Analysis and Competition

Define your target market, their needs, and their geographical location.

Describe the size of the market, the units of the company’s products that potential customers may buy,
and the market changes that may occur due to overall economic changes.

Give an overview of the estimated sales volume vis-à-vis what competitors sell.

Give a plan on how the company plans to combat the existing competition to gain and retain market
share.

Section 4: Sales and Marketing Plan

Describe the products that the company will offer for sale and its unique selling proposition.

List the different advertising platforms that the business will use to get its message to customers.

Describe how the business plans to price its products in a way that allows it to make a profit.

Give details on how the company’s products will be distributed to the target market and the shipping
method.

Section 5: Management Plan

Describe the organizational structure of the company.

List the key executives, their roles, and remuneration.

List any internal and external professionals that the company plans to hire, and how they will be
compensated.

Include a list of the members of the advisory board, if available.

Section 6: Operating Plan

Describe the location of the business, including office and warehouse requirements.

Describe the labor requirement of the company. Outline the number of staff that the company needs,
their roles, skills training needed, and employee tenures (full-time or part-time).

Describe the manufacturing process, and the time it will take to produce one unit of a product.

Describe the equipment and machinery requirements, and if the company will lease or purchase
equipment and machinery, and the related costs that the company estimates it will incur.

Provide a list of raw material requirements, how they will be sourced, and the main suppliers that will
supply the required inputs.

Section 7: Financial Plan

Describe the financial projections of the company, by including the projected income statement,
projected cash flow statement, and the balance sheet projection.

Section 8: Appendices and Exhibits

Quotes of building and machinery leases

Proposed office and warehouse plan

Market research and a summary of the target market

Credit information of the owners

List of product and/or services

Related Readings

Thank you for reading CFI’s guide to Business Plans. To keep learning and advancing your career, the
following CFI resources will be helpful:

Corporate Structure

Pitchbook

Three Financial Statements

NEW CFI Template Marketplace

See all management & strategy resources