The Executive Summary consists of a one-three page overview of the total business plan. Written after the other sections are completed, it highlights the significant points and, ideally, creates enough excitement to motivate the reader to go on.

General Company Description-Explains the history of the Company.

Products Plan-Explains the products and points out any unique features. Explains why customers will buy the product.

Marketing Plan-Shows who the customers are and the type of competition. Describes marketing strategy over a period of time and specifies what gives the Company a competitive edge.

Management Plan-Identifies key managers, investors and directors. Cites the experience and competence they possess.

Operating Plan-Explains the manufacturing or operating system in use. Describes facilities, labor, materials and processing requirements. The operating plan needs to coordinate with marketing plan.

Financial Plan-Specifies financial needs, reviews historical financial statements and then projects income statement balance sheets and cash flows.

Guideline Contents-The following questions should be used for self examination.

Market Analysis

1. What is your target market?
2. What is the size of your market?
3. What is the profile of your target customer?
4. How will customers benefit by using your product?
5. What share of market do you expect to get?
6. What are the reactions of prospective customers?
7. How will your location benefit your customers?


Competition

1. Who are your strongest competitors?
2. Is their business growing or declining?
3. How does your business compare with your competitors?
4. On what basis will you compete?
5. What is the future outlook of your competition?

Marketing Strategy

1. How will you attract customer?
2. How will you identify prospective customers?
3. What type of selling effort will you use?
4. What channels of distribution will you use?
5. In what geographic areas will you sell?
6. What type of sales force do you need?
7. What special selling skills will be required?
8. What selling procedures will be used?
9. How will you compensate your sales force?
10. What types of sales promotion and advertising will you use?
11. What pricing policy will you follow?
12. What credit and collection policy will you follow?
13. What warranties and guaranties will you offer?
14. How do your marketing policies compare with those of your competitors?
15. How will you handle seasonal peaks in the business?

Management Plan

1. Who are the members of the management team?
2, What are the skills, education and experience of each?
3. What other active investors or directors are involved and what are their qualifications?
4. What vacant positions exist and what are the plans to fill them?
5. What consultants will be used and what are their qualifications?
6. What is the compensation package of each key person?
7. How is the ownership distributed?
8. How will employees be selected and rewarded?
9. What style of management will be used?
10. How will personnel be motivated?
11. How will creativity be encouraged?
12. How will commitment and loyalty be developed?
13. How will new employees be trained?
14. Who is responsible for job descriptions and employee evaluations?
15. What time frame has been developed to accomplish the Company¹s objectives?

Operating Plan

1. How will you produce your product?
2. What production will be accomplished by subcontracting?
3. What production or operating facilities will be used?
4. What is the capacity of these facilities?
5. How can capacity be expanded?
6. What methods of production will be used?
7. What type of plant layout will be used?
8. What production control procedures will be used?
9. What quality control system will be used?
10. How will inventory be controlled?
11. What is the environmental impact of the business?
12. What are the advantages and disadvantages of the location?
13. What production and operating advantages exist?
14. What are the labor requirements?
15. What is the supply of labor?
16. What are the training requirements of labor?
17. Is the business union or non-union?
18. When is the next contract due for negotiation?
19. Are there any special plans for the next negotiation?
20. What are the major production costs?
21. What plans are there for automation?
22. What efforts are made at manufacturing systems review and improvement?
23. What are the major raw materials?
24. What sources of supply exist?
25. What will be the cost at each level of operation?

Financial Plan

1. What assumptions are used for financial projections?
2. What revenue is projected by months and years?
3. What expenses are projected by months and years?
4. What profits are projected by months and years?
5. What cash flow is projected by months and years?
6. What financial position exists now and what is anticipated at various points during the next 3-5 years?
7. What is the break even?
8. What additional funds are needed?
9. What financial resources are required now?
10. How will these funds be used?
11. What is the business worth?
12. What type of participation is being offered?

Not every one of these questions may be applicable and these should be used as a guideline. Most of this information was taken from the MIT Sloan School of Management. We would be happy to critique the business plan once a draft is completed.