How to Write a Business Plan Book

            Introduction   1

1          The structure of the plan   17

                        Using appendices 20

2          Summery    23

3          The business background    27

The business 27; What is the product or service? 28; The markets 28; Supply 29; How did you get here? 30

4          The market    33

Overviews 33; Market structure 34; Competitors 35; Customers 36; Distribution 37; Trends 39; Competitive advantage 40; Market segmentation 42; Differentiation 43; Pricing 43; Barriers to entry 45; New technologies 45; Mixed strategies 46

5          Operations    47

Differences 48; Processes 49; Control 50; Experience 50; Supply 51; Systems 53; Location and environment 53; Regulatory control 53

6          Management   55

The essential difference 60; What skills are required? 60; Organization structure 61; Demonstrating control 62

7          The proposal   67

Explain 67; The proposition 68; Why will you succeed? 69; Closing the deal 72; The exit 73

8          The forecast    75

The sales forecast 75; Costs 77; The five-year forecast 78; Reviewing the plan 79; Sensitivity 80; Key assumptions 83; Explain important points 86

9          Financial information   89

Profit and loss account 90; Cash forecast 93; Sensitivity 95; Break-even 95; Funding 96; Reconciling and checking 98; Timing 98; Balance sheet 100; Some important terms 106

10        Risks    109

11        Legal issues and confidentiality  113

                        Confidentiality 113

12        Selling your business     117

Explain why you are selling 118; Emphasize the great opportunities for the business 118; Don’t waste time illustrating that sudden upturn in business expected imminently 118; Do you include a forecast? 120; Who is the buyer? 120; Holding back information 121; Due diligence 121

13        Improve performance with a business plan    123

Planning is not budgeting 123; Strategic vision and action 132; Planning for people 144; Practicalities 147

Appendices   159

Glossary   165

Brian Finch is an independent consultant with considerable experience preparing and delivering effective business plans, as well as advising others on their business plans.