In this “post-pandemic”
economy, many people are looking to start their own business. 2021 saw a 23% YOY
increase in new businesses registered. Any successful business must start with
a business plan.
A business plan must contain aset of business goals:
o The reasons they are believed to be obtainable, and the plan for reaching those goals.
A professional business plan consists of 8 parts:
1. Executive summary – most important b/c it gives the current summary of the current state
of your business, where you want to take it and how you will achieve success.
2. Company description – gives a high-level review of the different aspects of your
business, including (if applicable) how it will stand out and what new need it will address.
3. Market analysis – goes into detail about your industry and your company’s market
potential, detailing strategies for market penetration, such as low prices or
4. Organization and management – sets forth your company’s organizational structure, type of
business structure of incorporation, the ownership, the management team, and the qualifications of everyone holding these positions.
5. Service or product line – describes your service or good which you are selling.
6. Marketing and sales – describes your marketing/advertising plan, projected sales and how
you came to that number.
7. Funding request – includes cost of supplies, building space, transportation, overhead
and promotion of your business. Be sure to keep and maintain accurate records
exactly reflecting the quoted figures so you do not commit Bank Fraud.
8. Financial projections – include historical financial data (bank statements, balance
sheets and possible collateral for your loan). The prospective financial part
of your business plan should show your potential growth in your industry,
projecting out for at least the next 5 years. Include a ratio and trends
analysis in all your financial statements. For your first year of operation, do
monthly, quarterly and annual statements.
Appendix – Do not attach to your Business Plan. Keep and provide only if necessary/required.
Would include your credit history (personal and business), resumes of key
managers, product pictures, letters of reference, details of market studies,
relevant magazine articles or book references, licenses, permits, patents,
legal documents, copies of leases, contracts and list of business consultants,
including attorney and CPA. Be sure to include “Private Placement Memorandum”
as a legend on your Appendix.
Business Attorney Andy Lannon is a Board-Certified Attorney with over 19 years of experience
helping business owners with their legal needs. Learn more about setting up a
business plan and corporate structure by schedule a free consultation.