Business Plan Writing Guide

7 Must-Haves in Business Planning Documents

All businesses, from home-based entrepreneurial ventures to international corporations, need a professional business plan. This valuable management tool may be used internally by managers, or externally to obtain financing.

A business plan tells users who owns the business, the owner's business goals, how benchmarks will be met, what type of product or service the business offers, and more.

Business Planning Crucial for Large and Small Businesses

It is a mistake to assume that because a business is small, a business plan is unnecessary. In her article Why Small Businesses Fail (or Fail to Thrive), small business coach Karyn Greenstreet points to poor planning as one of the most common reasons small businesses fail.

Business planning helps entrepreneurs anticipate issues, prepare for growth, and create strategies for success in different economic environments.A business plan should be treated as a living, breathing document and updated throughout the life of the business.

In the planning and start-up stages, a good business plan shows investors the entrepreneur is serious and has considered all aspects of business management. On a day-to-day basis, a business plan helps the management team set and meet goals, and carry out the vision of the owner(s).

How to Organize a Professional Business Plan

Choose a file format. Microsoft Office Word is a good choice for business plan writing and allows the writer to add tables, charts, images, and imported Excel spreadsheets (used in financial forecasting). Office Online also offers Word users optional business plan template downloads.

A business plan may have just a few, or several, components depending on the size and scope of the business. At the very least, a business plan should include:

1. Executive Summary- A one-page overview of the business, its objectives, competition, marketing, etc.
2. Business Information- Location, size, equipment, employees, etc.
3. Market Analysis & Marketing Plan- Researching the target market and formulating a marketing plan, including projected costs and anticipated results.
4. Projected Expenses & Revenues- Projections or models of expenses, revenues, and cash flow at different price levels and sales volumes, over a period of at least three years.
5. Financing- Detailed start-up and operation financing needs; required by most banks and investors.
6. Business Management- Bios, resumes, and other information on each member of the management team.
7. Growth Plan- Outline of plan for expansion in current location, new markets, or online due to business growth.

For more information on the components of a professional business plan, visit the Canada-Ontario Business Service Center or a business resource center in your area.

Business Plan Writing Tips and Tricks

After compiling the required information and creating a business plan document, edit to ensure clarity. Remove unnecessary information, organize sections logically, and consider the plan from the perspective of a potential investor. A business plan does not need to be long, but should be direct and professional.

Have an excellent speller proofread the business plan and attachments. Bind the business plan in a portfolio or binder. Some entrepreneurs choose to create complementary PowerPoint slideshows or short videos to accompany the business plan, especially when attempting to solicit larger amounts of capital from a number of different investors.

Where to Find a Business Plan Template

Business plan templates are widely available on the internet and in small business resource centers across North America. Business plan templates and business planning software are also provided courtesy of major banks such as TD Canada Trust and RBC Royal Bank - the very organizations a new business owner may approach for financing.