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Two Popular Business Plan Outlines Compared

Secret to Strength is Flexibility, Not Rigid Structure

We have two reasons for presenting and comparing the business plan outlines from two popular business plan packages.

First, either business plan outline will provide you with a useful framework or backbone around which to organize and build your own business plan. As such, they will help you to break up the overall job of preparing a business plan into smaller component sections. Do a bit at a time - on whichever topic or section suits you at a particular moment; delegate portions; assemble the components and bits and pieces later; edit later to bring the parts into a smooth and integrated finished product. While you are laboring "amongst the trees" you will have the confidence that the business plan outline will help you to make sense of "the forest."

Second, you will immediately see one of the most important things you will need to know about writing your business plan. Look again for a moment at each business plan outline... notice how the order of topics is a bit different; notice how each seems to have slightly different emphasis on topics. But see how each business plan outline really deals with the same points.

Jian's BizPlan Builder is a popular tool.

Cover Page
Table of Contents
1. Executive Summary
2. Vision and Mission
- Present Situation
- Vision and Mission
- Goals
- Objectives
3. Company Overview
- Legal Business Description
- Management Team
- Board of Directors
- Strategic Alliances
4. Product Strategy
- Current Product
- Research and Development
- Production and Delivery
5. Market Analysis
- Market Definition
- Customer Profile
- Competition
- Risk
6. Marketing Plan
- Sales Strategy
- Distribution Channels
- Advertising and Promotion
- Public Relations
7. Financial Plan
- Assumptions
- Financial Statements
- Capital Requirements
- Exit/Payback Strategy
8. Conclusion
9. Supporting Documents

Anatomy of a Business Plan is another very popular and widely used plan tool. It is also the basis for the Small Business Administration's material and a variation of this business plan outline can also be found on the SBA site.

I. COVER SHEET
II. STATEMENT OF PURPOSE (Mission Statement/Executive Summary)
III. TABLE OF CONTENTS
IV. PART I: THE ORGANIZATIONAL PLAN
- A. DESCRIPTION OF THE BUSINESS
- B. PRODUCTS OR SERVICES
- C. LEGAL STRUCTURE
- D. LOCATION Note: If location is important to marketing, cover in Part II - The Marketing Plan.
- E. MANAGEMENT Note: If you are focusing on "total quality management" (TQM), you may wish to combine Sections E. & F. and address it at this point!
- F. PERSONNEL
- G. ACCOUNTING
- H. INSURANCE
- I. SECURITY

V. PART II: THE MARKETING PLAN
- A. TARGET MARKET
- B. COMPETITION
- C. METHODS OF DISTRIBUTION
- D. PROMOTION
- E. PRICING
- F. PRODUCT DESIGN
- G. TIMING OF MARKET ENTRY
- H. LOCATION
- I. INDUSTRY TRENDS

VI. PART III: FINANCIAL DOCUMENTS
- A. SUMMARY OF FINANCIAL NEEDS
- B. LOAN FUND DISPERSAL STATEMENT
- C. PRO FORMA CASH FLOW STATEMENT (Budget)
- D. THREE-YEAR INCOME PROJECTION
- E. BREAK-EVEN ANALYSIS
- F. BALANCE SHEET
- G. PROFIT & LOSS STATEMENT (Income Statement)
- H. FINANCIAL STATEMENT ANALYSIS
- I. BUSINESS FINANCIAL HISTORY

VII. PART IV: SUPPORTING DOCUMENTS
- A. PERSONAL RESUMES
- B. OWNERS' FINANCIAL STATEMENTS
- C. CREDIT REPORTS
- D. COPIES OF LEASES, MORTGAGES, PURCHASE AGREEMENTS, ETC.
- E. LETTERS OF REFERENCE
- F. CONTRACTS
- G. OTHER LEGAL DOCUMENTS
- H. MISCELLANEOUS DOCUMENTS

The really key lesson from this for your business plan outline is that "What is important" is "what matters most to your reader." By the time you have written and edited each subject that is really relevant and important to your business, you will have a natural story to tell and a clear sense of how to tell it. Your business plan outline for your story will stand out clearly to you. Don't be afraid to experiment, to vary from the business plan outlines you see from others. The flexibility to adopt a business plan outline that is suitable for your story will give strength to your plan. On the other hand, if you try to fit your story into someone else's rigid business plan outline, you risk making your story snap and crumble - it will be weaker.

Just as good writers eventually produce a stronger work thanks to input and review from their editor, so can you. One of the most useful roles we can help you with is in editing your business plan outline and the eventual plan itself. We not only have experience with the word crafting, but as family business consultants we are able to discern and understand quickly your strengths and weaknesses, opportunities and threats. So we can help you emphasize the positive and deal with the negative.

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