A Standard Business Plan Outline

by Tim Berry

What information needs to be in your business plan? What is the order of information that will make the most sense to lenders and investors? You can answer these questions with the business plan outlines provided below.

What are the standard elements of a business plan? If you do need a standard business plan to seek funding — as opposed to a plan-as-you-go approach for running your business, which I describe below — there are predictable contents of a standard business plan outline.

For example, a business plan normally starts with an Executive Summary, which should be concise and interesting. People almost always expect to see sections covering the Company, the Market, the Product, the Management Team, Strategy, Implementation, and Financial Analysis. The precise business plan format can vary.

Is the order important? If you have the main components, the order doesn’t matter that much, but here's the sequence I suggest for a business plan. I have provided two outlines, one simple and the other more detailed.

Simple business plan outline

  1. Executive Summary: Write this last. It’s just a page or two of highlights.
  2. Company Description: Legal establishment, history, start-up plans, etc.
  3. Product or Service: Describe what you’re selling. Focus on customer benefits.
  4. Market Analysis: You need to know your market, customer needs, where they are, how to reach them, etc.
  5. Strategy and Implementation: Be specific. Include management responsibilities with dates and budgets. Make sure you can track results.
  6. Web Plan Summary: For e-commerce, include discussion of website, development costs, operations, sales and marketing strategies.
  7. Management Team: Describe the organization and the key management team members.
  8. Financial Analysis: Make sure to include at the very least your projected Profit and Loss and Cash Flow tables.

Build your plan, then organize it. I don't recommend developing the plan in the same order you present it as a finished document. For example, although the Executive Summary obviously comes as the first section of a business plan, I recommend writing it after everything else is done. It will appear first, but you write it last.

Standard tables and charts

There are also some business tables and charts that are normally expected in a standard business plan.

Cash flow is the single most important numerical analysis in a plan, and should never be missing. Most plans will also have Sales Forecast and Profit and Loss statements. I believe they should also have separate Personnel listings, projected Balance Sheet, projected Business Ratios, and Market Analysis tables.

I also believe that every plan should include bar charts and pie charts to illustrate the numbers.

Expanded business plan outline

Here's an expanded full business plan outline, with details you might want to include in your own business plan.

1.0 Executive Summary
1.1 Objectives
1.2 Mission
1.3 Keys to Success

2.0 Company Summary
2.1 Company Ownership
2.2 Company History (for ongoing companies) or Start-up Plan (for new companies)
2.3 Company Locations and Facilities

3.0 Products and Services
3.1 Product and Service Description
3.2 Competitive Comparison
3.3 Sales Literature
3.4 Sourcing and Fulfillment
3.5 Technology
3.6 Future Products and Services

4.0 Market Analysis Summary
4.1 Market Segmentation
4.2 Target Market Segment Strategy
4.2.1 Market Needs
4.2.2 Market Trends
4.2.3 Market Growth
4.3 Industry Analysis
4.3.1 Industry Participants
4.3.2 Distribution Patterns
4.3.3 Competition and Buying Patterns
4.3.4 Main Competitors

5.0 Strategy and Implementation Summary
5.1 Strategy Pyramids
5.2 Value Proposition
5.3 Competitive Edge
5.4 Marketing Strategy
5.4.1 Positioning Statements
5.4.2 Pricing Strategy
5.4.3 Promotion Strategy
5.4.4 Distribution Patterns
5.4.5 Marketing Programs
5.5 Sales Strategy
5.5.1 Sales Forecast
5.5.2 Sales Programs
5.6 Strategic Alliances
5.7 Milestones

6.0 Web Plan Summary
6.1 Website Marketing Strategy
6.2 Development Requirements

7.0 Management Summary
7.1 Organizational Structure
7.2 Management Team
7.3 Management Team Gaps
7.4 Personnel Plan

8.0 Financial Plan
8.1 Important Assumptions
8.2 Key Financial Indicators
8.3 Break-even Analysis
8.4 Projected Profit and Loss
8.5 Projected Cash Flow
8.6 Projected Balance Sheet
8.7 Business Ratios
8.8 Long-term Plan

Business plan outline advice

Size your business plan to fit your business. Remember that your business plan should be only as big as what you need to run your business. While everybody should have planning to help run a business, not everyone needs to develop a complete formal business plan suitable for submitting to a potential investor, or bank, or venture contest. So don't include outline points just because they are on a big list somewhere, or on this list, unless you're developing a standard business plan that you'll be showing to somebody else who expects a standard business plan.

Consider plan-as-you-go business planning. I've done a lot of work on this idea lately, resulting in my new "Plan As You Go" business planning, which is a now a book published by Entrepreneur Press, available through Amazon.com, Barnes and Noble, and Borders, and bundled as an eBook with Business Plan Pro and LivePlan.

More business planning resources

Sometimes an outline just isn't enough to write your business plan. Do you want to view sample business plans from real businesses? Would seeing a business plan template that banks prefer be useful to you? These valuable resources can help:

Sample business plans - Over 500 free sample business plans from various industries

Business plan template - This fill-in-the-blank business plan template is in the format preferred by the SBA and banks

Start a business - An easy to follow six-step process for starting a new business

Business Plan Pro - Step-by-step software that makes it easy to create a business plan, regardless of your business planning experience

LivePlan - Easy business planning for everyone. This online software includes expert advice, built-in help and more than 500 complete sample business plans.

About Tim Berry

Founder and President of Palo Alto Software and a renowned planning expert. He is listed in the index of "Fire in the Valley", by Swaine and Freiberger, the history of the personal computer industry. Tim contributes regularly to the bplans blog, the Huffingtonpost.com as well as his own blogs, Planning, Startups, Stories, Up and Running, and Planning Demystified. His full biography is available at timberry.com.

More from Tim Berry

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  • Ramaano Kenneth

    It have really helped me a lot, I `m currently busi with starting my own company that will take the world by storm and I really need someone who is not scared to invest on me since I don`t have cash.

  • mitchell

    what is the first thing you would do to start a business. what are the highlights of making a business plan? im thinking about starting A business.

  • Sean Serrels

    Hi Mitchell,

    The Small Business Administration has a great tool for people who are preparing to open their own businesses. The Small Business Planner can be found at: http://www.sba.gov/smallbusinessplanner/index.html
    It has a great step by step guide on how to prepare for and open a business as well as additional tips on writing your business plan.

  • Tracy Williams

    Thanks for this information. The information and the sample plans really continue to boost my energy and excitment over starting my new business venture.

  • http://www.paloalto.com Chelle Parmele

    Tracy,

    That’s great. We love to hear about someone excited about Entrepreneurship!

    Good luck to you and your new business!

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  • Trung

    I’m going to join HSBC young entrepreneur Award and they require a outline limited to 1000 words. If I use your outline model, it will be so long, won’t it ?

  • DOUGLAS WARUI

    Thank God I found what I was looking for

  • ashwini

    how to do business plan for spectacles and eyeware company?

    —-
    This is a question we get quite a lot Ashwini. “How do you write a plan for __specific type of business___”

    We have created the bplans.com website as a resource for people to get the information they need to write their business plans or help in the course of their business.

    We don’t write business plans here. We aren’t a consulting company. We write business planning software that walks you through writing your business plan step by step and helps you with the process of planning your business.

    On the bplans website you can find resources that will help you in creating a business plan for an eyeware company, but most likely, you won’t find a sample plan for that exactly. You’ll find the tools to write that plan yourself.

    I hope this was helpful, and good luck in your venture!

  • Godwin

    Very good guide i’m doing a business plan course and I found it very helpful I am useing it and its helping a lot very greatful for your site.
    Regards and best wishes for the future from Malta

  • darryl ivey

    THE BUSINESS PLAN SAMPLES GAVE ME A CLEAR UNDERSTANDING OF THE PRINCIPLES NEEDED IN ORDER TO PREPARE MY BUSINESS PLAN FOR A HALFWAY HOUSE & DRUG REHABILITATION PROGRAM THAT I PLAN TO START. THANKS!

  • Awadh

    Thanks for briefing on business plans.Learned something from you.Surely i will visit again for more information

  • http://www.paloalto.com Chelle Parmele

    Oy,

    If you do a search on the bplans.com website for SWOT you’ll find several articles on the subject.

    SWOT

    Hope that helps!

    ‘Chelle Parmele
    Palo Alto Software

  • http://www.paloalto.com Chelle Parmele

    Rey,

    You can search on the bplans.com website for some examples of complete business plans.

    Sample Business Plans

    Hope that helps!

    ‘Chelle Parmele
    Palo Alto Software

  • amankwah kwabena nsiah

    Thank you for your assistance it has really made my work easier.I wish there were avenues for people to send in their questions on the subjectfor help as to how to prepare a business plan of a specific nature.

  • BWENGYE RAJABU

    Thanks a great deal for your guidelines on writing business plans. This site is 100 times better and educative compared to other publications.

    I would be grateful if you could send me a copy or draft of any real life small/medium size business plan for any income generating business in the retail industry.

    Thanks.

    RAJABU-Business student-netherlands

  • http://www.paloalto.com Chelle Parmele

    There are several resources, some even here on this website.

    You can locate the Expert Advice tab at the top of the page or by doing another Google search for forum’s designed to assist people looking for specific help.

    There are also consultants you could look into, like Masterplans.

  • http://Ontheglobalwave Joe sway Salguero

    Very helpful thanks…

  • yahya sultan

    I’m in preparation of a Business Plan for a small scale enterprise for a financial company catering financial products and services.

    Any creative and innovative ideas are encouraged for my creation of Business Plan.

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  • Kanya Yoshihiro

    I just started an LLC and my biggest hang-up in writing my business plan is my financial forecast. Any suggestions would be greatly appreciated!

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  • Erik

    Hi you all.

    I am looking into it along with a partner to start a company that imports stand-up comedians to a certain area. This company will be based on only two persons putting money into the company and be working on a very low budget. I have been looking over the sample plans but none of them seem to fit to what I am looking at. Is there anybody out there who could point me in the right direction on how to make my business plan for such a small agency? It would be great if you knew of a good template that I could go by. Any help would be great.
    Thanks and good luck to you all out there.

  • http://www.paloalto.com Nicole

    Samson,

    There are many free sample business plans available here at bplans.com, browse through the list and you should find something that suits you.

  • Pingback: A standard outline for a business plan - Business Place blog

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  • Danker

    This is more of a question than a comment. The business plan outline is very helpful, but … it’s usually conceived for those who want to start a new business. My question is for advice on what to do with a business plan for revitalizing a dormant business in the tourist industry in Indonesia. Here are the particulars: an Indonesian firm owns two big river boats that used to take tourists (mostly from Europe and Japan) on river explorations. That has stopped because of financial mismanagement. I now have the opportunity to revive this business, but it needs investment for rehabilitating the boats, reviving the market, adjusting what is and can be offered to tourists, etc. I have no own capital, but the expertise to run something like this. It needs investment which can be in the form of direct investment or a loan from a bank. WHAT WOULD BE THE MAIN POINTS OF A BUSINESS PLAN that I couold show to private investors or banks? I can be reached at dschaareman@yahoo.com

  • SIMON SAANDO

    i found your information helpful to my project work and would like to see a sample of a business plan.

  • http://www.paloalto.com Jake Weatherly

    The outline is completely customizable in business plan pro. You can add topics, delete topics, rename topics and move topics.
    You might also find some of our resources on writing a business plan for a competition to be helpful. Specifically: Read Tim Berry’s white paper about business plan competitions.
    Thank you for your question.

    Jake Weatherly
    Palo Alto Software
    Customer Care

  • http://www.paloalto.com Casi Deatherage

    We do have a complete list of the 500 sample plans available within our sample business plan library. You can do a keyword search for your type of business from this link. This will let you know if there is a sample plan similar to what you are trying to create available for your reference.

    What is important is that Business Plan Pro will work to develop your own plan for your specific business, and it includes all 500 sample plans as a source for inspiration.

    Here’s a similar plan that might work: Custom Printed T-Shirts Business Plan

    Thank you for your question.

    Jake Weatherly
    Palo Alto Software
    Director or Customer Experience

  • http://www.paloalto.com Jake Weatherly

    We have a whole library of complete sample plans and each plan has its own unique business plan outline.

    Jake Weatherly
    Palo Alto Software
    Director of Customer Experience

  • http://http nangolison Benego

    business plan is a guiding principal to the entrepreneur because it explains the journey of the organisation from the day of start and how it will carry on with its activities.
    with the recent competition organisational running needs to be systematic and this can be done with help of the business plan.
    in order for the organisation to succeed,its like some body traveling and he needs vehcle for traveling and so applies to entrepreneur he needs the vehicle which is the business plan

  • http://linkgraph.net Oli Loftus

    Hi, excellent article about business plans, I’m currently starting a new business and writing the business plan is one of the starting points for me to secure investment. Also the fact that you say that you don’t necessarily need to follow the structure reassures me, as I won’t be needing to but felt a little unsure about doing so.

    Thanks again!

  • http://www.paloalto.com Casi Deatherage

    Hello Danker,
    Calculating the value of your business is vital if you are trying to find investors, apply for a loan, or sell your business to a potential buyer. The Premier Edition of Business Plan Pro includes detailed valuation tools that can help you determine a solid business valuation and create a professional investment offering. Showcase the true value of your business with more advanced spreadsheets that describe the sources and uses of cash for any new or existing business.
    Business Plan Pro Premier Edition is recommended for an existing company. The premier edition has advanced financials and can can forecast out up to ten years and in detail for up to two years. Make sure you maximize the full value of your business by using this option, which is only available in the Premier Edition.

    Hope that helps!

    Casi Deatherage
    Palo Alto Software
    Customer Care

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  • John S. Brown, Sr.

    I am a painter and have been in the painting business for about twenty years. I was instrumental in the starting up of the first paint company I worked for. The steps were very basic and we made a lot money…. The tools of the traid were purchased and we advertised our serviceses by canvesing neighborhoods and leaving our business cards. Now I would like to start this buissness for myself and I neeed to know how to write an effective business plan and/or a proposal to acquire more funds to start up. I have purchased some of my equipment and a van, however, I still have some very cost oriented obsticals to overcome and I need some help. Anyone who has been in this business knows that the painting business is very lucrative and can be rewarding on many levles. I am not only good at what I do, I also like it. Is there really help out there for the minority start-up businessman?

  • sharon fisher

    Im starting my own buisness, but right now I dont have
    the capital to fund my project.
    it will be a beauty supply based buisness and the
    area I found to run it will be perfect for this project
    it has other buisnesses being built in this area,
    and the customer potential is great.

  • Scott

    Sharon,

    Here is a great resource for getting the capital you need to start your business. Another great resource can be your bank. Ask them about a small business loan.

    How to Get the Financing for Your New Small Business: Innovative Solutions From the Experts Who Do It Everyday.

    Author: Fullen, S

  • http://www.paloalto.com Casi Deatherage

    Hello John S. Brown, Sr.,

    Busines Plan Pro does a great job of helping you write a business plan for start-up funding.

    Best regards,

    Casi Deatherage
    Palo Alto Software
    Customer Care

  • http://www.paloalto.com Casi Deatherage

    Dear Sharon Fisher,

    We have resources built into Business Plan Pro to help you get funding. For example, some businesses choose to start by bringing in investors for start-up funding, while others go to a bank for a business loan. Business Plan Pro has resources built in for both approaches (the SBA loan application for bank loans, the Venture capital Database for investment sources).

    Best regards,

    Casi Deatherage
    Palo Alto Software
    Customer Care

  • sameer .ahmad rather

    i am want to establish to our own buisness in kashmir . plese suggest what plan suit for me .when i have not such fiancial position to develop a big buisness .

  • Syed Raza Abdulkhader

    I want to set up a business of providing my clients with a door to door service of automobile Oil / Lub change while they are relaxed at home or office.

    Can some one help me with a Business / Marketing Plan. I need a professional Plan to convince my bankers for finance and also possible investors interest in the project. SOS srabdulkhader@gmail.com

  • http://www.paloalto.com Casi Deatherage

    Hello Syed,
    Honestly, you may not find a sample plan that will exactly match your business model. You may find several that are close or related. What is important is that we include sample plans as idea generators and examples, not as plans that you can actually print and turn in to a bank.

    All sample plans included are real plans. You may use them as a starting point, but even if one exactly matches your type of business, it will still have different start-up costs, location, management team and market research information.

    What is important is that Business Plan Pro will work to develop your own plan, for your specific business. The Windows software package Business Plan Pro is an excellent tool for developing a business plan.

    I hope this was helpful!

    Casi Deatherage
    Palo Alto Software
    Customer Care

  • Simon

    I wish you could create a downloadable page in application form style.

  • http://ZowocoMarketing.com zowoco

    It is always worthwhile to take time assessing your business plan before you commence a new project or company: mistakes which could prove costly in practice can be eliminated painlessly on paper!

    Remember that a Business Plan and your Marketing Strategies Plan are quite different, and don’t forget your cashflow forecasts, profit and loss projections, start-up capital, ongoing capital, buy-out plans and expansion plans, bank financing and sales training! Setting up business on paper is quite a venture!

  • Denise

    Wow…This has helped me out so much on my business plan.

  • Jai Vasandani

    Your guide-line helps…

    I am grateful…

    Jai

  • Spring

    Hi, I’m writing a business plan for Business class, and it is a prety rough task. Easy for me because my plan is based on averages and similarities between businesses.

    In my textbook though, it is mentioning things that are needed in a business plan, but I am finding it really difficult to see what is the most important information to take from the paragraphs. Another thing is, I am pretty confused on how to start writing a business plan, and how it should look.
    I can’t find any samples of business plans!
    I can only find outlines.

    I really like this outline the most because it goes into detail, but I’m thinking that each different headline would have to be a different paragraph or page.. or is it points?

    I’m lost, please get back to me, thanks!

  • http://N/A muya

    it seems to be helping me

  • http://www.paloalto.com Casi Deatherage

    Hello Spring,

    Business Plan Pro includes 500+ sample plans. Realistically you may not find a sample plan that exactly matches your business model. You may find several in your industry that are close or related. It is important to understand that we include sample plans as idea generators and examples, not as plans that you can actually print and turn in to a bank.

    All sample plans included are real plans. You may use them as a starting point, but even if one exactly matches your type of business, it will still have different start-up costs, location, management team and market research information.

    Business Plan Pro will guide you through the process with a flexible outline of about four dozen topics organized into chapters, topics, and subtopics, with links to the proper tables and charts. Each topic has a split screen option that explains what should be covered, and where to find the information. With the click of a single button, you may view an example of what that topic will look like in the finished business plan.

    I hope this information was helpful.

    Casi Deatherage
    Palo Alto Software
    Customer Care

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