If the purpose of your business plan is to attract debt financing or a Small Business Administration loan, you will want to follow the model business plan format. Business plans for private equity investors will vary but should still include tables and charts, and give an overview of the business’s history and overall financial goals. The sections below describe the key elements of a business plan for private equity investors.
Business plan for established company
An existing business may use a business plan to, update the business plan: The company’s situation has changed and they need to update their plan. This can be done by changing the key assumptions or variables in the plan, such as sales growth, operating costs, and cash flows.
raise capital: The company wants to raise additional capital by selling equity or debt securities, or both. To do this, they must provide potential investors with an overview of the company’s past performance and its future prospects. In this case, the company has already completed a full-blown plan but needs to update it for potential investors.
plan for change: The company may want to grow into new markets or take advantage of new opportunities. For example, if a company is considering opening up a small chain of stores in another country, it will need to develop detailed plans for each store location and then determine how many stores it can afford to open at any one time.
Business plans are important tools for established businesses, too. An existing business may use a business plan to:
Plan for growth and expansion.
Develop a marketing strategy.
Set goals and objectives.
Establish financial goals and benchmarks.
Prepare for a loan or other financing option.
A business plan is a written document that provides information on the nature of the business, its objectives and strategies, and its financial requirements. A business plan is also a tool to help you make decisions.
A business plan can be used by an existing company to:
establishing goals and objectives;
developing strategies for achieving those goals;
assessing the company’s strengths and weaknesses; and
identifying risks, opportunities and threats (ROTs).
This is the most common type of business plan. It’s designed for a company that already has a track record, has been in operation for at least a year and has some sort of sales or revenue. It may also be used by companies that want to expand their existing product line or service offering.
The sample below is for a company that sells organic food products and operates through two retail locations in San Francisco. The owner wants to expand into other cities by opening additional stores, which requires capital investment and hiring more employees.
When writing a business plan for an existing company, remember:
Start with your mission statement (see below). This is where you’ll describe why you started your business in the first place and what makes your company unique compared to others in your industry. Then explain how your company makes money — its revenue model — so investors can understand why they should invest in you and not another company offering similar products or services.
An existing business may use a business plan to,
Plan for growth. If you’re already in business, a business plan can help you set goals and strategies for the future. Think of it as a road map that guides you as you grow — and helps keep you on track.
Business plans are also used by lenders and investors to assess the viability of your business idea. A well-written business plan can help make their decision easier.
An existing business may use a business plan to,
update its current plan
verify that goals are being met
evaluate progress to date, or
assess new opportunities.
This sample business plan for an existing business includes:
An executive summary outlining the company’s purpose, strategy and goals.
A market analysis including a discussion of competition and how the company will compete in the marketplace.
A description of the company’s products and services, including pricing strategies and customer demographics. This section also includes a financial forecast containing sales and expense projections along with detailed breakdowns of anticipated costs by category.
Appendices containing information such as product samples, press releases and other marketing materials as well as legal documents such as contracts with suppliers or customers.
A business plan can be used to help you build a business from the ground up. But what if you’re looking to start a business in an existing industry?
Business plans are used by existing businesses to expand their operations, whether they are looking to open a new store or branch office, or add additional services. Even though your company may already have customers and revenue, a good business plan will help you get financial backing for your expansion efforts.
A sample template for an existing business plan is included below. The sample includes all the basic elements found in a traditional business plan: executive summary, marketing plan, financial projections and more. Use this template as a guide for creating your own unique business plan for an existing company.
A business plan is a written document that describes the nature of the business, its products and services, its location and facilities, the amount of capital needed to get started, how much money can be made, and how it will make it.
A business plan serves as a road map for your business. It helps you determine if your business idea is viable and if you are prepared to succeed. It also helps you determine how long it will take to achieve your goals, how much investment capital will be required, what type of financing to seek, whether or not you have enough resources to successfully implement all aspects of the plan and when you can expect to break even financially.
A good business plan should include:
An executive summary of about three pages that gives an overview of the company’s products and services, markets and growth potential;
A description of the company’s operations;
A description of the company’s management team;
Target market analysis (location);
Marketing strategy;
Financial projections (income statement/profit & loss statement);
Cash flow projections;
Writing a business plan is the best way to organize your ideas and thoughts, and to make them more concrete. It also helps you to think about your goals and how they might be achieved. Writing a business plan is a lot like writing an essay or report, but with a few additional elements.
What’s in a Business Plan?
A good business plan should include:
Executive summary: This is where you describe what you’re selling, who you’re selling it to and why they should buy it from you instead of someone else. It’s also where you provide detailed information on what the business is all about — its mission statement (why it exists), its products or services (what it does), its target market (who buys from it), its strategies for success (how it will earn money) and its financial projections for the next three years or so.
Business description: This section describes what your company does in more detail than the executive summary does — for example, how many employees are involved in providing the service or product(s). You may want to include some background history here as well (for example, how long has the company been in operation?).
Marketing plan: This part of your business plan should discuss how much money you expect to.