To the Point Business Plan Outline

TO THE POINT

BUSINESS PLAN

OUTLINE

ARKANSAS SMALL BUSINESS AND TECHNOLOGY DEVELOPMENT CENTER

TO THE POINT BUSINESS PLAN OUTLINE

A business plan is a vital tool that will help you organize and develop your ideas and goals.

The To the Point Business Plan Outline streamlines and simplies the process of writing a

business plan. Though every business is unique, the ve sections (points) in the outline are

essential to your business plan no matter what type of business you plan to start.

The questions in this outline are designed to guide you as you create your plan. The Arkansas

Small Business and Technology Development Center can assist you with compiling your

answers into narrative form as they will appear in your completed business plan.

Your Products/

Services

Your Market

The Industry

Operations

and Management

Your Budget

Summary

All Points

Summary

TO THE POINT BUSINESS PLAN OUTLINE

Your executive summary is exactly that: a summary. You want this section to be concise,

pinpointing the highlights – your goals, objectives, and monetary needs – in an enthusiastic

fashion that captures the interest of your audience. The rest of your business plan gives the

details; this section oers highlights of what to expect from the rest of the document.

Write your summary last. The summary customarily appears at the beginning of your

completed business plan. However, you will need information from the rest of the business

plan in order to write it, so be sure that composing the summary is your last step.

• What type of business are you planning to start (or expand)?

• Where will the business be located?

• Who will be the owner(s), and what will be the legal structure?

• What is the total cost to start/expand your business (include amount needed for

equipment, inventory, furniture/xtures, supplies, startup-related expenses, buildings

or improvements, and working capital)?

• How much money are you contributing towards the total project costs?

• How much are you trying to borrow?

• What are you oering as collateral for your loan?

Point 1

Your Products/Services

TO THE POINT BUSINESS PLAN OUTLINE

You must clearly identify the type of business as well as the products and services you will oer.

You may say “that’s obvious!” but in taking the time to collect your thoughts and write down

your ideas, you may discover problems you had not anticipated and advantages you had not

considered.

• What are the business’s products or services?

• Where are those products/services sold (storefront, online, oce space, etc.)?

• What is the pricing structure for your products/services and how do you determine

your prices?

• What problem or need is your product/service solving?

Point 2

Your Market

TO THE POINT BUSINESS PLAN OUTLINE

Without customers, you cannot have a business. Yet many companies know next to nothing

about the people or businesses that purchase their products or services. As a business owner,

you need to know two things about your potential customers: what characteristics they have

in common and how many of them are in your target area. Identifying competitors is the

next step in analyzing your market. Consider both direct and indirect competition. When

you know who your audience is, you can create a marketing strategy to best pinpoint that

particular demographic.

• Who are your target customers?

• How many potential customers are in your trade area?

• Discuss the competition for your product/service within your trade area.

• Who are your direct and indirect competitors?

• What sets your business apart from the competition? In other words, why would

someone choose to buy from you rather than the competition?

• What are the best ways to market to your target customers?

• List your main 5-7 marketing tactics. (Be specic.) How much will each cost?

TO THE POINT BUSINESS PLAN OUTLINE

Point 3

The Industry

As a business owner, you must know your industry. Regularly reviewing industry trade

journals, publications and websites is a good idea. Other possible sources of information

are national or regional trade associations for your type of business.

• What trends and issues are facing the industry as a whole?

• What are some of the biggest problems the industry is facing?

• What opportunities exist in the industry?

TO THE POINT BUSINESS PLAN OUTLINE

Point 4

Operations and Management

The operation plan details the day-to-day “whos, whats, and wheres” for eectively operating

the business and illustrates to investors and lenders that you know how to run the business

and deliver your product or service. One of the most critical, yet most intangible, requirements

for a successful business is the management skill to control and direct the business once it is

operating.

• What is the owner’s role in business operations?

• Identify the number of employees required, their basic job functions, and their wages.

• What operational issues aect the business?

• How and when do customers pay?

• For existing businesses, what have you learned about operating your business

successfully?

TO THE POINT BUSINESS PLAN OUTLINE

Point 5

Your Budget

Developing a12-month operating budget is critical, whether you are starting or expanding.

Business owners incur many costs. Some of these expenses are of a continuing nature, such

as rent, utilities, and insurance. Others will be nonrecurring, such as equipment purchases,

security deposits, and the like. Be conservative and realistic as you develop your operating

budget. It is much better to outperform your projections than to try to explain why you

didn’t meet them – especially if you must explain that to your banker.

Obtain reliable estimates wherever possible. For example, public utility companies can give

you estimates on monthly bills for your proposed location.

If you’re a startup, keep in mind that it typically takes longer than anticipated for sales lev-

els to reach expectations. In a startup environment, it takes time for customers to nd out

about your business, decide to give you the opportunity to sell to them, and nally make a

purchase. Existing businesses entering new markets may have similar experiences.

Project Cost Summary

Equipment ___________________

Furniture/Fixtures ___________________

Inventory ___________________

Supplies ___________________

One-Time Fees and Deposits ___________________

Building or Improvements ___________________

Working Capital ___________________

Debt Renancing ___________________

TOTAL ___________________

(Existing businesses only)

TO THE POINT BUSINESS PLAN OUTLINE

Point 5

Your Budget

Budget Explanation

• How did you determine your monthly sales projections?

• How did you determine your monthly expense projections?

• Discuss other factors in the business that are expected to inuence your budget and

cash ow.

• For existing businesses, explain any dierences between historical performance and

future projections.

Include Monthly Cash Flow and Income Statement Projections for at least one year.

TO THE POINT BUSINESS PLAN OUTLINE

Supporting Documents

• Personal Financial Statement

• Resumé

• Price Quotes or Estimates on Planned Large Purchases (if applicable)

• Collateral List

• Historical Financial Statements (existing businesses only)

• Tax Returns (existing businesses only)

ASBTDC Offices

Lead Center

LITTLE ROCK

University of Arkansas at Little Rock

College of Business

Donald W. Reynolds Center for Business

& Economic Development

Suite 260

2801 S. University Ave.

Little Rock, AR 72204

501.683.7700

asbtdc.org

Regional Offices

ARKADELPHIA

Henderson State University

School of Business

870.230.5184

FAYETTEVILLE

University of Arkansas, Fayetteville

Sam M. Walton College of Business

479.575.5148

JONESBORO

Arkansas State University

Neil Griffin College of Business

870.972.3517

MAGNOLIA

Southern Arkansas University

David F. Rankin College of Business

870.235.4007

MONTICELLO

University of Arkansas at Monticello

870.460.1910

RUSSELLVILLE

Arkansas Tech University

College of Business

479.356.2067

The Arkansas Small Business and Technology Development Center is funded in part through a cooperative agreement with the U.S.

Small Business Administration through a partnership with the University of Arkansas at Little Rock College of Business and other

institutions of higher education. All programs are extended to the public on a non-discriminatory basis.

We hope you nd this outline helpful. Be certain to also review our To the Point Business Plan Sample as

you work on your plan. Once you have a draft plan, contact the Arkansas Small Business and Technology

Development Center near you for an appoinrtment. Our sta can review your plan and provide guidance

as well as answer questions.

Call On Us

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