Writing a Business Plan

2. Content of the Plan

Base the plan on detailed information where possible. But do not include all the detail in the plan. Leave the detail for operational or marketing plans.

2.1 Keep the plan short.

• Focus on what the reader needs to know.
• Cut out any waffle.
• Ensure there are no spelling mistakes.
• Put any substantial information, such as market research, in an appendix.

2.2 Base your business plan on reality, or it may be counter-productive.

• Over-optimistic sales forecasts can lead to increased overheads followed by a cashflow crisis and drastic cost-cutting, all of which can seriously damage morale.
• Be realistic, even if you are selling the business to a third party. (See 1.2.)

2.3 Make the plan professional.

• Put a cover on it.
• Include a contents page, with page and section numbering.
• Start with an executive summary. This summarises the key points, starting with the purpose of the business plan.
• Use charts, if relevant.

2.4 Even if the plan is for internal use only, write it as if an outsider was the reader.

• Include company or product literature as an appendix.
• Give details about the history and current status of the business.