[PDF]Business Planning for Success

Embassy of the United States of America



BUSINESS BEGINNINGS



Business Planning for Success




Writing a business plan helps you solidify business goals and develop measurements of success. © iStockphoto/Thinkstock



Whether you are just
starting out or ready
to expand your enter-
prise, a business plan is your
blueprint for success. Projecting
three to five years into the future,
a business plan articulates your
business goals and clarifies your
path to achieving those goals.

A business plan is essential to
attracting investment for start-
ups. It is also an important tool
for managing and expanding an
established business.

Because each business is different,
each business plan is different.
But every business plan should
contain the following elements:

Executive Summary

The Executive Summary section
offers a snapshot of your business
plan. It touches on your busi-
ness's mission, history, organiza-
tion and structure. The executive
summary should provide a brief



overview of your products or ser-
vices, your strategy for marketing
your products or services, and a
summary of projected sales, prof-
its and cash flows.

If you are using your business
plan to attract investment, the
executive summary should also
state how much capital you need
and how you intend to use it.

Because the executive summary
encapsulates the entire business
plan, it will be the last section
you write — and the first section
of your business plan.

Business Description

The Business Description section
explains what your business
does. It includes your business's
history, mission, organizational
structure and strategy for mar-
keting. It should also cover
administrative issues such as
business location, legal struc-
ture and personnel, and explain



how you will handle account-
ing, insurance, legal and secu-
rity matters.

Market Analysis

The Market Analysis section
describes your industry, the mar-
ket for your products or services
and the competition your busi-
ness faces. Whether you hire a
market-research company or use
the Internet, your market analysis
should be based on real data and
demonstrate how your business
will be successful. Your market
analysis describes your indus-
try's current size, historic growth
and trends; pinpoints your target
market, its distinguishing charac-
teristics and needs; and identifies
your competition, its strengths
and its weaknesses.



Organization and Management

The Organization and Management
section captures the organizational
structure of your business and the
background of its key people. It dis-
cusses your business's divisions,
their respective responsibilities
and how they interact. Including
organizational charts can be a good
way to convey this information
visually. You should also include
the experience and responsibilities
of your business's executives. Show
how each will help your business
achieve its goals.

Product or Service

In the Product or Service sec-
tion, you should highlight the
product(s) or service(s) your busi-
ness provides and what makes it
superior to the competition. Show
how your product or service will
satisfy a need in your target market
and help your business maintain a
competitive advantage. You should
also include the scheduling, costs
and personnel needed to deliver
your product or service, along with
any potential risks and how you
will mitigate those risks.



The U.S. Small Business Administration sponsors a website
that offers ideas for business plans and other helpful
information at business.usa.gov.




Marketing and Sales Strategy

Your Marketing and Sales Strategy
section details how you will
market and sell your product or
service. The marketing strategy
includes how you will identify and
attract customers; how you will
grow your business; how you will
distribute your product or service;
and how you will communicate
with your target market. The sales
strategy outlines how you intend
to sell your product.

Funding Request (Optional)

If you are using your business plan
to attract investors, this section
should state the capital your busi-
ness requires and how your busi-
ness will use that capital.

Financial Projections

The Financial Projections sec-
tion forecasts the future financial
health of your business. It should
include three documents: an
income statement projecting how
much your company will earn or
lose; a cash-flow statement illus-
trating how much cash your busi-
ness will need and where that cash
will come from; and a balance
sheet reflecting how much your
business will own versus how
much it will owe. A good business
plan provides monthly projections
for the first year, quarterly pro-
jections for the second year, and
annual projections for your plan's
remaining years. You should com-
plete this section after your orga-
nizational and marketing sections.
Established businesses should also
provide historical financial data.
Income statements, cash-flow state-
ments and balance sheets for the
previous five years should suffice.



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Include graphs and charts to illustrate visually the
content of your business plan. © iStockphoto/Thinkstock

Appendix

Thie appendix provides supple-
mental materials such as resumes
of your company's leaders, product
designs, complete market analy-
sis, legal documents and reference
letters. The appendix should be
distributed on an as-needed basis
— especially if it contains sensitive
information.

Updates

Once you have completed your busi-
ness plan, review it regularly to mon-
itor the progress of your business
and make necessary adjustments.

Keep a record of every business plan
you distribute. This allows you to
update all copies of your business
plan — and ensures your informa-
tion stays in the right hands. If you
plan to give your business plan to
private investors, include a private
placement disclaimer. This dis-
claimer prohibits the investor from
distributing your information and
should be placed at the beginning of
your business plan.



UNITED STATES DEPARTMENT OF STATE

BUREAU OF INTERNATIONAL INFORMATION PROGRAMS