A business plan summarizes what will be accomplished by being in business and how those accomplishments will be attained. It is only one step in establishing a business, however it is one of the most important ones. There are many factors as to why a business plan must be documented. The following is a list of some of those factors:
A business plan:

• Documents business objectives and how these objectives will be attained within a specific period of time,
• Describes who you are, what you plan to achieve, where your business will be, when you expect to get underway, how you will overcome any risks and provide anticipated returns,
• Identifies customers, market, pricing strategy, marketing strategy, sales, operating costs, products/services, materials,
• Helps identify overlooked opportunities,
• Aids with the overall ability to manage the business improves with a business plan,
• Is a sense of realism.

• Updating of the plan only improves the operations
• Most forms of financial assistance require a business plan upon application
  • It identifies the amount of financing/investing required,
• A well organized plan makes a great first impression,
• The ability to manage the business will only improve with commitment to the accomplishments documented in the business plan.
  
  
• The following are the contents of a business plan:
  • Executive Summary/Business Description
    • Describes the highlights of the business plan
  • Business Concept
    • Identifies the market potential
      • Description of Industry
        • Industry trends, new products and developments
      • Description of Business Venture
        • What products/services are being offered, target market, business location and size
      • Business Goals
        • Over one year and then the longer term
      • Marketing Plan
        • Sales strategy, distribution, promotion, guarantees
      • Sales Forecast
        • A monthly forecast for the first year, then an annual forecast for 2-4 years
      • Production Plan (Manufacturing) or (Retail or Service)
        • Description of production process or purchasing plans, inventory control, physical plant requirements (if manufacturing), space requirements (if retail or service)
      • Corporate Structure
        • Partnership, Sole Proprietorship, Corporation, share distribution, list of contracts and agreements
      • Risk Assessment
        • The 'what if' list
      • Action Plan
        • Steps to accomplishing the first year's goals
      • Financial Plan
        • Financial Statement
          • Previous years' balance sheet
      • Financial Forecasts
        • Projected income statements
      • Financing and Capitalization
        • Loans, owner's equity
      • Operating loan
        • Lines of credit, maximum operating cash requirements
      • Present Financing
        • Term loans
      • References
        • Name of present lending institution
      • Appendix
        • Could include letter of intent, list of inventory, list of fixed assets, accounts receivable, accounts payable, appraisals