A business plan is a fundamental requirement for all start-up and rapidly growing businesses. As every business is different there is no such thing as a standard business plan. And, as most businesses operate in dynamic markets, a business plan should not be static.
Over its lifetime, a business typically goes through several stages (refer Managing the Stages of Business Growth. The transition between stages represents a critical phase in the life of a business. This transition, along with changes inherent in a business' growth including changing market conditions, evolving company strategies, and actual financial results, signal the need to update the business plan.
A guide to the type of content typically required in a dynamic business plan follows. The information is based on PricewaterhouseCoopers experience with start-up ventures and rapidly growing businesses, but should only be used as a guide.
Guidelines for writing your plan
The executive summary is critical: This two to three page summary of the business plan is what most investors turn to first. It often determines whether they will read the remainder of the plan or decline the opportunity. This section should always be written last. View a template of an ideal executive summary and the type of content it should include.
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Executive Summary
Clarify the focus: The plan should be clear about the products to be developed and the markets to be addressed by the business. Try to avoid saying that the company will develop a widget and sell it to General Motors and the grocery store down the street without explaining how it will actually be done.
Transition into rapid growth: Businesses that are emerging from less dynamic environments need to provide an accurate critique of past performances (i.e.strengths/weaknesses). More importantly, they need to clearly describe what has changed about the business and the reasons for the changes.
Avoid superlatives: The ‘trust me’ school of thought does not work in business plans. If your product is going to be the best in the market, thoroughly explain why.
Quantity does not equal quality: A well written plan should be succinct and to the point and is usually no more than 30 to 50 pages.
Confidentiality: Rapidly growing companies are usually heavily dependent upon a few key technologies which are not always patent protected and are particularly prone to competition while in a development stage. A business plan should therefore be clear and concise but should not reveal information that could reduce the company’s competitive edge.
Main Sections of a Business Plan
The following is a list of the main sections that you may need to include in your plan:
- Executive summary
- The company
- Products / services
- Industry analysis
- Market analysis
- Marketing strategy
- Management
- Implementation plan
- Financing
- Financial information
- Industry specific data
The information contained in this article should be used as a guide only. For professional assistance with your business planning please contact one of our team.
