Skip to main content
mail

What to Include in a New Business Plan

A well-crafted business plan isn’t just a blueprint for establishing and growing your business — it’s also key to obtaining funding from financial institutions.

Creating a plan on clipboard

Utilizing data relevant to your industry, your business plan should lay out the unique edge your business will bring to its target market, how it will generate consistent income, and your initial risk assessment and management plans.

Whether a venture is new or established, lenders assess business plans to ensure they’re viable, sustainable and consistent, often focusing on a set of standard sections.

Business Plan Essentials

  • Executive Summary: Serving as your first impression, the business plan’s executive summary should be brief, compelling and realistic as it demonstrates how your business serves its customers and how you will define success. Include a clear, convincing mission statement, a unique selling proposition and a summary of all following sections.
  • Business Description: The business plan’s description must establish credibility by going into specifics about how the firm will solve a customer problem (for example, by providing an innovative product feature or filling an unmet demand in the marketplace) and including relevant data to support why the solution is valuable. This section should illustrate why customers will respond positively to your business and how you will accomplish your objectives.
  • Market Analysis: Lenders evaluate your business plan’s market analysis to determine whether you’ve incorporated all appropriate market data: the size of your target market, industry trends, competitor statistics, etc. Your research should reflect deep knowledge of your business’ industry, consideration of developments in the landscape and an assessment of competitors’ advantages and disadvantages when compared to your offering. The analysis should convince a reviewer that you understand the industry and can set your business apart.
  • Structure and Management: A business is only as strong as its leadership. To demonstrate your credentials, the business plan’s management description should include well-drafted curriculum vitae (CVs) and an organizational chart that illustrate who is responsible for — and capable of — achieving all objectives outlined throughout the rest of the plan.
  • Service or Product Details: Provide specifics about your service or product, such as a description of your value proposition, how your service or product will reach customers (your delivery system or area of operation), how you will determine pricing and how your prices compare to competitors. If applicable, also include research and development plans, copyrights or any resources that add value to your offering.
  • Marketing and Sales Plan: Do you have a sound strategy for identifying, reaching and retaining your target clientele? Detail every part of the customer experience, from your unique brand message to the sales process to how you will encourage customer loyalty.
  • Funding Request: Explain how much financing is needed and each expenditure in terms of how it will help reach business goals — whether that be salaries, marketing, equipment or expansion opportunities. Also, outline preferred terms, a description of proposed collateral, how the loan will be repaid and the planned actions if the business is unable to repay the lender.
  • Financial Projections: Provide best- and worst-case scenarios for two to five fiscal years, along with data that assures your bank that your projections are practical. For established businesses, support future objectives with two years of historical data, including balance sheets, cash flow projections and income statements. New businesses should support forecasted earnings and anticipated expenditures with more market data, pre-orders or contracts, or questionnaires with potential customers in your target market.

Throughout Your Business Plan

  • Be realistic. Overly idealistic projections can weaken credibility.
  • Provide charts, graphs, organizational graphics and other illustrations that help clarify and visualize your information.
  • Stay consistent with your objectives and mission statement. Lenders will cross reference each section of the business plan to ensure you have one cohesive and plausible vision for a successful business as well as the capacity to repay the loan.

Overall, your business plan should demonstrate both your knowledge and your commitment. Clear dedication to your business and its plan signals a greater chance you will effectively manage your loan and guide your venture to success.

Visit FNB’s Knowledge Center, Lending Options or SBA Solutions for more information to help you meet your business goals.

0 items in your cart

Cart Proceed to Checkout

Product video