Create a Business Plan

Information to Include in Your Business Plan

Create an executive summary
Describe the current business environment
Outline your marketing and pricing strategies
Describe how your business will operate
Detail your financing and cash flow needs
Describe your team (even if it’s just you)
Identify risks and how you’ll protect your business
Write a conclusion
Include your contact information

Create an Executive Summary

After your cover page and table of contents, include an executive summary. Since this is the first thing readers will see, it should be clear, grab their attention and identify what your business does.

What to include:

• Your industry, target market and how your business is different from the competition
• Your business structure (sole proprietorship, corporation, etc.)
• What stage your business is in
• Your experience and credentials, as well as your team’s, if applicable
• Financial projections for the business (or performance to date, if you’re already operating)
• Calculate your estimated revenue - how to calculate revenue

Describe the Current Business Environment

This should be a detailed history and summary of your business, identifying the product(s) or service(s) you’re offering and how you will solve a problem or need in the market. Be sure to include any pre-market research or testing you’ve conducted that speaks to the viability of your idea.

When you’re starting a business, your bank and potential investors don’t have historical data to review. Your plan must clearly convey your strategy, competencies and the reasons your venture will succeed. (If your business is already established, you’ll want to cover where you started and how you got here.)

What to include:

• Where you want your business to go—and how you’ll get there. What are your goals? How will you generate sales?
• What your business does. What needs does your business fulfill? Where will you sell your products or services?
• Your business set up. How is your business structured? Are there other owners or shareholders?
• How you know your business will work. What market research or testing have you done? Are there trends?

Outline Your Marketing and Pricing Strategies

This is your opportunity to explain how you’re going to get customers to buy your products or services. This section involves identifying your ideal customers, your pricing strategy and more.

What to include:

• Your products, service and unique selling proposition. What are the features of your product or service and what makes it unique compared to what your competitors offer? How will you draw customers away from competitors?

• Your pricing strategy. How will your pricing be competitive, but still allow you to make a profit? Check out how to decide on a pricing strategy.
• Your sales and delivery strategy. How will you will generate sales? Will you sell directly to customers or through other businesses? How much will it cost to produce and ship your product?
• Advertising and promotion strategy. Which advertising and promotion tactics (website, digital marketing, social media, email) will reach your audience most effectively?

Describe How Your Business Will Operate

The operations section of your business plan should describe what’s physically necessary for your business, as well as any partners who help keep things running smoothly.

This section contains four main categories:

• Your stage of development. This should highlight what you’ve done to date to get the business operational, then follow up with an explanation of what still needs to be done.
• The production process. This lays out the details of your day-to-day operations, manufacturing details, inventory, costs, outsourcing and more.
• Getting products and services to customers. What is your supply chain and distribution strategy?
• Partners and allies. Who are the people and organizations that support you? Who are key suppliers and vendors?

Detail Your Financing and Cash Flow Needs

Use this section to determine how strong your business is financially. Be realistic about expenses and projected income so you can properly assess your financial health early on and make sure you have enough cash for the first year.

What to include:

• Startup costs. What are your one-time and ongoing expenses? How will you cover the costs? Check out how to determine your start-up costs and working capital or use our Startup Costs Calculator.
• Profit margin and break-even point. How will you make a profit and calculate margins? What is your break-even point? Suggested reading: The Difference Between Cash Flow and Profit
• Balance sheet. What assets, liabilities and capital do you have at this point in time?
• Financing. What are your sources of financing—savings, loans, grants? What are your repayment terms, if any?
• Cash flow forecast. What is your 12-month cash flow forecast? Estimate it now: Cash Flow Forecast Template

Describe Your Team (Even if It’s Just You)

This section should describe your current team as well as anyone you might need to hire to round out your company.

What to include:

• Skills and strengths. What skills do you and/or your team have that are critical to the business?
• Management style and structure. How will you manage your team? Who will employees report to?

Identify Risks and How You’ll Protect Your Business

Every business comes with some risk, so it’s better to be prepared for them now rather than be surprised later. Use this section to explore potential risks and how you’ll protect your business.

What to include:

• Obstacles your business may face. How could the economy, your competition, supply chain or another circumstance affect your business? How do you plan to minimize and handle these and other risks?
• How you’ll protect against losing market share (new competition). Do you have any agreements or vendors you’ll rely on?
• How you’ll prevent critical data loss. Outline what you will do to reduce the impact of data loss, such as backing up all computer data regularly, using cloud providers, employee rules on installing software and other policies.
• How you’ll protect intellectual assets. Will employees sign confidentiality agreements to protect processes, trade secrets and other intellectual property? See How Intellectual Property (IP) in Canada Works.
• Compliance requirements. What rules, regulations and licences will you need to comply with to operate?
• Insurance needs. Does your industry require specific coverage, such as professional liability or other insurance?

Write a Conclusion

This is the last thing readers will see, so you want it to be strong. Use your conclusion to reinforce your goals and objectives. If you need financing, clearly state the amount you need and how it will be used. As with your executive summary, your conclusion should be succinct, clear and leave a positive impression.

Include Your Contact Information

Potential investors and lenders need to know how to reach you. Don’t forget to include your business name, contact information, website and social media presence in your plan.