Cultural Enterprise Office

There are many possible layouts for a business plan, though banks, investors and funders may have their own preferred format. Here we cover standard contents for any plan and a couple of content checklists to help you form your own template.

Standard contents

We’ve put together a couple of checklists that will help you make sure you include everything you need for both a simple and more detailed investment business plan. First, though, let’s take a look at the five basic areas to cover in any plan:

• The business
• Marketing
• Finance
• The management team
• Executive summary (NB – you’ll write this section last, but it usually appears first in the final document)

Here’s what you should include in each area:

1.    The business

The business name, address and owner should appear on a cover sheet.

There should be a short paragraph outlining the business’s legal structure (e.g. sole trader, partnership, company etc.) and who owns it.

Describe your business, the product or services you’re providing and your proposed market. Explain how your product and business is sustainable. Who wants to see or buy your product and why?

Sell yourself. Explain how or why your product is unique, or better quality than others. If you feel your work is unique, you may want to consider protecting it through intellectual copyright or other means.

Include an analysis of the sector and its potential for growth and development. Use competitors and peers as an indication of the size of the market, and to show the size of audience you think you’ll be able to capture. Give a clear idea that you’re aware of your customers, and show how you’ll get them to buy or view your product.

Finish with a summary of your aims and objectives for the business, and how you plan to achieve them.

2.    Marketing

The key to marketing is understanding your audience. You must be able to profile target clients and customers, show their likes and dislikes, and demonstrate the changing trends and developments in your field of work.

That shows you’re aware of where and how to position your product, as well as how to price it. It also demonstrates that you understand how your audience is likely to change or develop over time.

Present a clear description of your target market, and an analysis based on your research. Charts and tables are strong visual aids to this process. Include a realistic SWOT analysis of each area – its strengths, weaknesses, opportunities and threats.

State any current competition. Don’t overlook potential rivals, and be realistic about your business’s prospects. It’s better for your business plan to be refused at this stage than for the project to fail later on.

3.    Finance 

Potential funders and backers often look at this section first. It’s a good indicator of how well you understand your market, and they can quickly assess how realistic you are about sales, audience and fees (yours and your competitors’). You should give detailed information about the financial situation of your business by including: 

• previous accounts, at least the previous year and up to three years if possible
• details of any outstanding loans or assets
• current management accounts, cash flow forecasts and a break-even analysis 

Ensure you outline realistic financial projections, and that you provide a range of different scenarios for sales, costs and long and short-term cash flow.

Be honest – exaggerating figures could prove damaging in the long run. Bear in mind that investors are used to examining business propositions in detail. Be realistic about your costs.

4.    Management

This section should outline your background and experience, as well as that of all key members of your management team. CVs for each individual should be included. Outline the strengths and weaknesses of the team as a unit.

Any lack of necessary skills can often be resolved through consultation. You may be able to recruit advisors or board members in a non-executive capacity, if your legal structure allows. Alternatively, you could investigate the possibility of recruiting volunteer advisers.

5.    Executive summary

The executive summary is the last section you should tackle, but the first to appear in your business plan. It’s an important section that will summarise, in about two pages, what is explained in detail in the rest of the document.

Describe your business’s current situation, and your aims and ambitions for its development.

The summary should also include your mission statement. That’s usually one or two paragraphs stating: 

• what your business does
• your intended market audience
• the business’s aims and objectives
• your aims for the business and its future
• your competitive edge.

Ensure the summary is clearly written, positive and persuasive. Balance sales talk with realism and a clear knowledge of your specialist area and art form.Don’t underestimate the importance of spending time on this section. It could be your best opportunity to sell your idea to investors.Here are those checklists – they’ll help you make sure you include all the information your business plan needs.

Checklist 1: contents of a simple business plan

Disclaimer: We want to keep you in the know, so we offer a wide selection of useful resources. But Cultural Enterprise Office isn’t responsible for the advice and information of external organisations in this document. So if you have any questions, please contact the specific organisation directly.