How to Format a Business Plan
Originally published: 05/09/2017 15:50
Publication number: ELQ-67389-1
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How to Format a Business Plan

8 tips to learn how to format your business plan to raise money, guide your team, and set strategies for growth.

Introduction

Your business plan should accomplish certain goals: raise money, guide your team, and set strategies for growth. The format of your business plan will help you achieve these goals, so it’s important to think about the plan’s structure as you build it.


There isn’t one right way to organize your plan, but you do need to make sure that it’s professional, includes the information your audience wants to see, and is formatted correctly. If you’re using your business plan to raise money, then your plan needs to impress. If you’re using your plan just for internal use, then maybe you can focus less on the final presentation.


Either way, getting the formatting right for your business plan is important. Here are my top eight tips to make sure your business plan accomplishes what it needs to do.

  • Step n°1 |

    Always start with an executive summary

    The executive summary introduces your business to your reader. If you don’t nail the executive summary, no one is going to read any further.
    thumb_upEvery executive summary should include a very brief overview of the following:


    -> The problem your business is addressing
    -> Your solution to the problem (i.e., your product or service)
    -> Your target market
    -> Why the timing is right for your business
    -> Financial forecast highlights


    If you’re raising money or presenting your plan to outsiders, you’ll also want to cover:


    -> The team behind the business
    -> How much money you’re looking to raise


    Ideally, your executive summary should fit on one or two pages. Keep things short and concise; your readers don’t have a lot of time and want to be able to get a quick overview of your business, so they can decide whether or not they want to read more.


    Your executive summary should also be able to stand alone, without the rest of your plan. A common strategy is to send your executive summary out to investors and then send out the complete plan when more detail is requested.


    Remember that people who are reading your executive summary don’t know anything about your business before they start reading. You need to explain things simply so that anyone can understand your opportunity.


    We have a more detailed guide on writing an executive summary if you want additional tips on this critical part of your business plan.
    How to Format a Business Plan image
  • Step n°2 |

    End with supporting documents

    All business plans should start with an executive summary and end with your supporting documents—an appendix of key numbers and other details that support your plan.


    At a minimum, your appendix should include your financial forecasts and budgets. Typically, you should include a Profit & Loss statement, a Cash Flow forecast, and a Balance Sheet.


    You might also use your appendix to include product diagrams or detailed research findings, depending on your business and your industry.


    Be careful not to cram your appendix with endless additional information—three to six pages should be plenty. Investors and other readers of your plan can always ask for more detail if they want it.
    How to Format a Business Plan image
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