Start Your Business Off Right with a Business Plan Outline

A business plan outline provides the framework for the business plan that will act as your small business blueprint. Answer these questions as you create yours.

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Sandra Beckwith

Sandra Beckwith has been writing for traditional and online publications since she sold her first magazine article while still a journalism student. Her articles in business, consumer, trade, and custom magazines; in corporate, alumni, and nonprofit organization publications; and on websites and blogs help readers learn more about successful initiatives and interesting people, or about how to do something better, faster, or smarter.The author of three traditionally published nonfiction books and a past contributing editor of three trade journals, Beckwith writes frequently on small business, logistics, supply chain, and work-life balance topics.She is also a national and regional award-winning former publicist who teaches authors how to market their books. Her book marketing website, BuildBookBuzz.com, has been recognized for excellence by four organizations and is ranked in the top 10 globally for book marketing blogs. She has served on the board of directors of the American Society of Journalists and Authors, where she remains an active volunteer and member. She is also a member of the Association of Ghostwriters. Beckwith is a graduate of Utica College of Syracuse University, a past member of its Raymond Simon Institute board, and a recipient of its Outstanding Public Relations/Journalism Alumna Award. A resident of a sweet little Erie Canal village in Western New York, Beckwith listens to audiobooks every evening while walking along the canal's original towpath for exercise. Her hobbies include eating, sleeping, and spending time with friends and family—but not necessarily in that order.

Start with standard business plan elements

Most business plans include the following elements. Use each as an outline section.

Executive summary
Company description with mission statement
Products and services
Target audience
Market analysis
Competitive analysis
Operations and management
Sales and marketing strategy
Financial plan

How each of these applies to your business, and how in-depth you'll be in your outline and plan, depends on your answers to the following questions.

Who will read and use your plan?

Your business plan will look different depending on whether you write it to secure investors, form a business alliance, or hire contractors, says Nishank Khanna, chief financial officer of Clarify Capital.

If you'll be approaching banks and investors, your outline and resulting plan will be more detailed than one you'll only use internally with your team.

"Investors will value your business based on the details and data, so it's important to be comprehensive and thorough. Your investors will be looking for holes in your assessment and plan to determine whether or not your business is viable and to what extent it's profitable," Khanna says.

How new is your business?

Business plan outlines aren't just for startups. Small businesses with months or years of experience also use them when they change direction or need to secure funding.

Startups can begin the outlining process with fewer details because they don't have the in-house data needed to document presumptions or projections. But a business relying on its track record to seek outside funding or a partner needs to go deeper to make the case for success.

"As the business matures, the outline can change. A highly detailed outline in the very early stage would most probably go to waste as the business might look nothing like what's in the outline after a few months," says Gian Moore, a partner at MellowPine, a home DIY blog.

Are you a solo entrepreneur?

If so, you still need an outline and a plan, but you can skip the management team, funding requirements, and exit strategy components, says Daniel Seeff, CEO of sock retailer Foot Cardigan.

"My advice to small business owners is always to include an executive summary, industry analysis, customer and competitive analyses, marketing, and operation plans in the outline. Outlining your revenues, expenses, and forecast of net income for the next three to five years is crucial for understanding where your business is going," Seeff says.

Brian Cairns, CEO of ProStrategix Consulting, agrees that the financial component is important, even for sole proprietors. "Without that piece, if you hire because you expect an increase in demand, for example, you might not realize that you pay for the labor before you get the payment from the client, which could cause an unexpected cash flow crunch," he says. If you've included financial statements in the outline, you'll expect and plan for this.

Fill in the blanks

With the outline in place, expand each section by adding bullet points documenting what you know now and what you need to research. Think of it as a living document that grows as you add new information, one step at a time.

Some sections will have more bullet points than others, depending on your situation.

When your research is complete, and each section has the facts needed, you're ready to write a business plan that will be your small business success blueprint.