How to write a business plan?

• You are planning to raise capital for new business. 

• You want to expand your existing business.

• You need to pump in new investors into your business.

• You want to sell your business.

Based upon my experience and knowledge, one can write business plans on the basis of below mentioned outline. 

1. Executive summary: This is basically a one page write up about your business plan to give a brief idea to investors. Only important facts about the business plan are highlighted under this head.

2. Introduction 

a) Brief about your company

b) Mission and Vision statement of the company

c) About Management team: Mention the name of promoters / founders / partners along with brief about their past experience, educational qualification and major achievements. 

3. About business idea / plan

- Brief about product and business plan.

- Need Gap: What made you to think about this product / services?

- USPs: What is the unique selling proposition (USP) of goods / services? 

- Target market: Who will be the target customers and where are they located?

- Current Market Scenario: What is the existing market size of the proposed goods / services in terms of customer base? Mention demographic profile of the customers.

- Mention the list of similar products existing in the market and major areas in which it is currently available.

- What is the current growth rate / CAGR (compounded annual growth rate) of the industry & business segment? 

- SWOT analysis: Mention all possible Strengths, Weaknesses and Opportunities & Threats for your business idea.

- Do the “Five forces analysis” or “Competitive analysis” for your business and mention the same in your plan.

- Pilot testing: What was the response of pilot testing which was conducted in past (If conducted in past)?

- Goals / Milestones: What you are planning / expecting to achieve in 5 years of time frame in terms of market share, revenue and growth rate etc?

4. Marketing strategy 

a) Pricing strategy: What would be the pricing of the goods / services and reason behind the selection of pricing strategy?

b) Promotion tactics & strategies: What promotional / marketing strategies have you planned for promoting your goods / services? Mention the marketing tie ups (if any).

c) Marketing budget: What is the proposed marketing budget and how you are going to use the same?

5. Execution plan

- Under this head, you need to answer the basic question i.e. how you are going to execute this plan?

- What will be your preferred entry route (distribution network) into market? 

- In how many phases this plan will be executed?

- Mention the list of places / cities under each phase.

6. Forecasting & projections

- Most important of all is the financial plan and the assumptions behind financial projections. Take special care while assuming anything and try to justify those through some valid logic. This section will comprise of the following.

a) Major assumptions

b) Projected sales for 3-5 years

c) Projected PL & BS for 3-5 years

d) Key ratios and indicators

e) Capital structure

f) Human resource forecast

7. Future growth plans 

- You just need to highlight your future plans i.e. What next? 

8. Proposal for investors

- This section should cover below mentioned points.

a) Entry routes: JV, Partnership, Equity dilution or any other route (please specify).

b) Funds requirement and their utilization plan: How much fund is required and how you are going to utilize the same?

c) Valuation of business & Minimum stake offered with proposed investment. 

d) Projected Return on Investment - ROI

e) Exit plan: Formalities to be made during exit or minimum lock in period for investment.

9. Appendix

a) Definitions

b) Graphs / charts

c) References 

I think that most of the major questions will surely get answered through this format. You can write on discussion board regarding your view on this format. Your suggestions can guide me as well as my readers.