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Outline of a Detailed Business Plan

by Olufisayo
Published: Last Updated on
Antrix Corporate Solutions Ltd
Outline Of A Detailed Business Plan

Business plans usually consist of eight (8) sections as itemized below: Cover Page, Executive Summary, Table of Contents, etc.

It is useful to have one or two pages Executive Summary of the Plan. The Executive Summary is placed in front of the completed plan after the Cover Sheet.

A Table of Contents is also useful in guiding the readers. However, the Summary and Table of Contents are to be written after you must have completed the entire business plan.

Sections Of The Business Plan

1. Introduction To The Business Plan

This section contains the following:

  • Name of the Business
  • Purpose of the Business
  • The legal form of the Business
  • Business Owner(s)
  • Amount and type of loan required
  • The period loan will be repaid
  • Purpose of the loan
  • Expected results

2. Description Of The Business

In this section, you need to describe the basic idea about your business and how the idea came into being. Why do you think the market needs your product/service? Which group of people will you offer your product or service? What are the appealing features of your business over that of your competitors and why do you think you will be successful?

  • A detailed description of the business
  • Research done on the business
  • Appealing factors of the business
  • Factors that will determine the success of the business.

3. Description Of Product Or Services

This section will contain the product(s) or services you will offer to the public. Specify the products and how they are produced. How are they compared to similar products or services? Here you will also specify the quality of your products, differences as compared with those of your competitors.

4. Key Personnel And Other Staff

In this section of the plan, itemize the key people that will be involved in the production and operation of your business. What are their qualifications and experience? If you are the sole operator, what are your experiences, qualifications, and skills?

  • Organization structure
  • The job description of each employee
  • Resumes (CVs) of Key personnel.

5. Marketing And Sales

This section will contain the following information: Who is your target market? How many people are there in the locality? What do you have to offer that is different from your competitors? What are the channels of promotion? What are your prices? What other marketing elements will distinguish your business?

  • Customers
  • Competitors
  • Location
  • Advertising and Promotion
  • Pricing
  • Sales and Credit Terms
  • Other marketing elements
  • Estimated Sales

6. Operations

Materials And Sources Of Suppliers
The purpose of this section is to determine what materials you will need for the business and where you will get them. Without regular supplies, it will be difficult if not impossible to produce your goods for sale e.g. A bakery will not be able to bake without a regular supply of flour.

Equipment And Tools
Here you will have to list all equipments that you will need in the enterprise. Details and specifications of the equipments should be included. If possible, you can include a proforma invoice from the suppliers of the equipments as this is required by the Banks in evaluating an application for credit.

Production Technology
This section is necessary for businesses involved in the production or assembling of products. Wholesalers, Retailers or Service businesses should skip this part of the plan.

The purpose of the section is to explain the production process step by step from raw materials to finished product.

7. Finances

This section will answer the following financial questions:

  1. If you have a product, how much does it cost to produce?
  2. What are your monthly expenses?
  3. What will you spend on advertisement, promotion, and marketing of your product?
  4. How much will your equipment cost?
  5. How much do you have to sell monthly to cover your costs?
  6. What do you expect your expenses to be for the next twelve months?
  • Sources and Uses of Funds
  • Proforma Balance Sheet
  • Profit and Loss (Income) Statement
  • Proforma Cash Flow
  • Break-Even Analysis
  • Major Risks and Assumptions

8. Supporting Documents/Appendices

This is the last section of the business plan where supporting documents plus other useful information are attached. If you claim in the plan that you have a piece of land, you should attach a photocopy of the C of 0, title or registration in your name.

Samples of supporting documents in the Appendix are:

  • Resumes of Key Personnel
  • Past Financial Statements ( for existing businesses)
  • Price quotations of equipment
  • Brochures of Equipment
  • C of O or Title of property
  • Lease contract of land or building
  • Business registration papers
  • Addresses of Suppliers
  • Personal Awards or certificates of Skills

Good luck.

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8 comments

Stella | Copycat Business Strategies May 11, 2011 - 5:32 PM

Fisayo, this post will really help a lot of people to go past ‘I don’t know how to start’ writing a business plan.

I do a lot of business writing and most times people know they should write, especially when a bank requests for it and they do not have cash to pay a writer to do it but giving those kind an outline always helps.

Thanks for thinking of writing this post this way. Like it.

Olufisayo May 11, 2011 - 6:20 PM

Thanks for the comment and sharing on Twitter. I see a need to help people out with the essentials of a business plan and shared the article. I’m glad you liked it Stella.

How To Prepare A Good Feasibility Report July 5, 2011 - 11:36 AM

[…] Outline Of A Detailed Business Plan […]

hina mehreen April 15, 2012 - 1:31 PM

owsum information here…..really helpful in my project

Olufisayo April 16, 2012 - 9:09 AM

Thanks for the comment Hina, we are glad we could help

Muhammad Aamer Rasul ACA August 11, 2012 - 10:09 AM

This is really useful material for businessmen and business professionals

Nash September 10, 2012 - 9:45 AM

Thanks for the info. Its very informative and helpful. I have never prepared such documents so wondering if there is any further help online or where I am based. I live in Accra, Ghana.

Thanks again for the info here

Nash.

Nash September 10, 2012 - 9:47 AM

Thank you for all the info here. I have found it very helpful. Just wondering if there is any further help available online or here in Accra,Ghana where I am based. I have never prepared such documents before and any help would be appreciated.

Thanks again

Nash

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