How to Create Your Own Business Plan

What to include in your business plan:

1. The purpose of your business:

Think of this as your elevator pitch. What problem is your business solving? You should also include any significant experience or knowledge that will help you deliver a successful product or service. Include background information on how, when and why you entered the industry.

2. Management and ownership details:

Identify your company’s primary owners, management team and philosophy; include job descriptions and relevant experience. Estimating any positions you’ll need to fill for future maintenance or growth — including adding a board of advisors or directors — can also be helpful. Also note what legal structure you use: Are you a proprietorship, partnership or corporation?

3. The market you’re trying to reach:

Who is your target market? What do you know about the market’s attitude toward your industry and product or service? This would be the spot to list any relevant demographic data, specifically buying patterns and trends, and include any focus group findings. You might also want to mention:

• Your marketing plan: How will you attract your market to your product or service? Consider including your plans for promotion, such as where you’ll advertise and your marketing budget.

4. The state of the industry:

Name the industry’s key players and identify its size, as well as any significant changes the industry has undergone in recent years (and any you anticipate).Your business plan should also touch on:

• Competition: Specify your major competitors and their strengths and weaknesses.

• Differentiation: What makes your company different than your competitors? Make it clear exactly what value you offer that others in the industry don’t.

5. Information about your products and services:

Describe the products and services you plan to offer. What specific benefits do they provide, what need will they fulfill, and how do they fit into the market? Be sure to determine if you’ll want or need any trademarks, copyrights, licenses or guarantees associated with your products or services.

6. Operations:

The operations description should mention any physical logistics involved with running your company. Where will the business operate from? Do you have a location secured? What overhead costs are involved? How many employees need to work at each location and what will you pay them? What vendor relationships will you need to establish?

Lastly, be sure to include information about how inventory is stored and any regulatory issues at each location.

7. Historical and projected financial information:

If this is a plan for an existing business, you should provide information from the past three to five years, as well as monthly and quarterly projections for the next year, including forecasted income and cash flow statements, and capital expenditure budgets.

Your projected balance sheet should list assets — buildings or machinery you own, cash you’ll have on hand each month, money you’re owed and inventory — as well as debts, such as unpaid bills and outstanding loans.

A solid business plan can help prove to investors — and reaffirm to yourself — that your entrepreneurial idea is a worthwhile one.

For more information on writing your business plan, visit the Canadian Business Network for sample business plans, templates, and business planning FAQs.