Business Plan Outline

How To Write A Business Plan Outline: The Ultimate Step-By-Step Guide

Kurt GraverBusiness Plan, Business Start-up Advice

A business plan is an essential document that outlines your company’s objectives and how you plan to achieve them. However, crafting a comprehensive plan that attracts investors and sets your startup on a path to success can be daunting for first-time entrepreneurs.

This definitive guide breaks down each section of a business plan outline, providing actionable tips and examples so you can create a winning business plan tailored to your business goals.

Executive Summary

The executive summary should capture the essence of your entire business plan, almost like a trailer for a movie. Keep it short, sharp and compelling.
Key elements to cover:

  • Brief description of product/service
  • Founding team credentials
  • Target customers
  • Projections for growth and profitability
  • Funding needs and proposed structure

Aim for about a one to two page summary that gets investors excited enough to read further.

Company Overview

The company overview contextualizes what you are setting out to achieve.

Mission statement: The mission statement summarizes your company’s purpose for existing. It can inspire employees and provide direction in decision-making. Example: “To organize the world’s information and make it universally accessible and useful.” – Google

Vision statement: The vision statement outlines your ambitions for the future – where you envision your business being within 5 to 10 years. Example: “To be Earth’s most customer-centric company.” – Amazon

Values: List 4-5 core values central to your organizational culture and beliefs. Example values: integrity, quality, transparency.

Team credentials: Detail the key skills and past experience of founders and management. Demonstrating a capable team is vital for investor confidence. Share brief bios and LinkedIn profiles.

Legal structure and ownership: Explain your company’s legal structure – LLC, partnership, sole proprietorship etc. State the ownership percentages between founders.

Intellectual property: List any trade secrets, pending patents, trademarks or registered copyrights your business has. This information carries significant weight for investors.

Products and Services

This section catalogues your product suite or service offerings. Go in-depth into:

  • Where you are in the product cycle – concept, prototype, final testing, launch-ready etc
  • Benefits and features your product provides
  • What makes it distinct from competitive offerings
  • Any proof points regarding desirability from beta tests etc

Use images and graphics to effectively showcase the product and its usefulness. A short video demo can also capture investor interest.

Market Analysis

The market analysis examines the viability of your product by determining:

  • How fast the market is growing
  • Trends and developments driving growth
  • The competitive landscape

It answers a key question – will enough customers want to purchase what you are selling?

Total addressable market: Research the total market size your business can potentially target. Include monetary value. Cite projections from industry research firms like Forrester or Gartner.

Target market: Define the specific customer segments you will serve within the addressable market. Core demographics like location, income level, gender, profession, etc, can guide segmentation.

Competition: Determine 2 to 3 chief competitors. Analyze their product suites, pricing models and market shares to showcase gaps.

Competitive advantage: Given competitor analysis, highlight unique advantages your product has – this could be technology, enhanced features, pricing etc. Reinforce why you can acquire and retain target segments.

Traction: Reference customer testimonials, revenue from early sales or even intent from surveys to provide proof points.

Marketing and Sales Plans

This section focuses on how you will promote and sell your product. It can be divided into two parts:

I. Marketing plan

The marketing plan should define activities to:

  • Raise brand and product awareness in a cost-effective manner
  • Generate interest in your target audience
  • Craft a consistent brand voice and persona

Elements to detail:

  • Content strategy – blogs, videos, advertising campaigns
  • Social media and SEO optimization
  • Events, webinars and PR outreach

II. Sales plan

The sales plan aims to convert interest into paying customers.

Elements of an effective sales strategy:

  • Sales channels – direct, partnerships, ecommerce etc
  • Sales team structuring – roles, responsibilities, commission structures
  • Customer acquisition costs
  • Sales projections

Set realistic first-year sales targets based on average deal value, projected close rates and market size estimates.

Operations Plan

The operations plan serves as a blueprint for executing daily business functions.

Key operational needs:

  • Physical space and equipment
  • Legal and finance – contracts, accounting, payroll etc
  • Inventory, shipping and delivery management
  • Software, data and cybersecurity

Milestones: Provide timelines showcasing operational readiness for launch and beyond.

Partnerships that enable effective operations:

  • Key suppliers and partnerships – distribution channels, technology vendors, etc.
  • Outsourced expertise – specialized marketing agencies, legal counsel

Describe contingency plans for handling potential risks – supply shortages, system outages etc.

Management team: The founders and heads of divisions will shape future decisions. Assess your management team’s capabilities to steer operational growth.

Financial Plan

The financial plan converts all the market assumptions and operational resource planning into monetary projections. Core statements required:

I. Startup costs

Provide an itemized list totalling the full starting capital requirement. Components:

  • Product R&D expenses
  • Marketing budget allocation pre-launch
  • Staff salaries for the first few months
  • Office space and equipment purchases and deposits

Cite quotations and estimates from respective vendors.

II. Revenue forecasts
Leverage target market data and sales strategies defined earlier to construct 12 to 36-month revenue projections. Build in realistic growth rates for each product segment and channel.

III. Profit/loss statement
With projections for both fixed and variable costs included, lay out a P&L statement highlighting net earnings over time. Factor in elements like tax rates based on the legal structure chosen.

IV. Cash flow statement
While profitability determines success eventually, managing cash flow is vital early on. The cash flow projects bank balances – calculate this by adding earnings and subtracting real cash expenses.

Monitor for periods where costs overweigh revenues to avoid unplanned fund crunches. Provide plans to cover shortfalls if needed.

V. Key ratios
Standard ratios like gross margin, operating margin and customer acquisition costs substantiate financial assumptions further.

VI. Exit strategy
Describe potential exit strategies for founders and investors for the long run- IPO, acquisition, leadership change or even liquidation.

Funding Requirements

With financial planning clarity, summarize key funding needs and stage-wise utilization plans.

Information to include:

  • Type of funding – debt, equity etc
  • Total capital requirements
  • Use case for capital injected.
  • Proposed investment terms – valuation caps, interest rates, etc

Contextualize funding needs as investments for future growth. Offer preferential terms for early investors.


Wrap up by recapping core parts of your business plan – the problem identified, your solution and projections for market dominance.

Summarize the value proposition to get investors fully bought into the vision.


Include research reports referenced from reputed sources to back up claims.

Attach founder profiles and credentials. Supplement with pictures of prototypes, product screenshots or customer presentations.

The appendix adds further evidence and helps convey information easily for quick reference.

With this guide on structuring an effective business plan tailored to your context and audience, securing the funding to turn vision into reality is within reach.

The comprehensive outline covers all key areas investors assess for risk and scalability. Personalize each section further using the templates and tips provided.

Stay nimble in implementation while adhering to the long-term goals outlined herein. Get an accountant, expert advisors or a mentor to review drafts.

Have confidence in your thorough strategic planning, and avoid getting intimidated in pitching conversations. Back up financial assumptions with number crunching – but focus more on conveying the passion to succeed.

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