Format of a Business Plan

A complete business plan is arranged in a set format so that it is easy to follow. Each section explains one important aspect of the business.

Main sections

• Executive summary — a brief overview of the whole plan. Although placed at the beginning, it is usually written last.
• Marketing plan — states the target market and the 4Ps strategy (product, price, place, promotion).
• Operations plan — describes the production process, premises, machinery and suppliers.
• Financial plan — shows the capital needed, sources of financing and projected profit.

Role of each section

The executive summary helps a reader such as a bank officer understand the idea quickly. The marketing plan identifies the target customers and competitors. The operations plan focuses on the day-to-day work of producing goods or services. The financial plan shows whether the business is able to earn a profit.

Additional sections and why format matters

Besides the four main sections, a business plan often includes a business background stating the name, form of ownership (such as sole proprietorship or Sdn. Bhd.), location and SSM registration status. The administration plan describes the organisational structure, the number of employees and their duties. Some plans also include a SWOT analysis and an appendix containing supporting documents such as supplier quotations.

A tidy arrangement matters because the reader can find information easily. Each section is connected; for example, the projections in the financial plan must match the targets stated in the marketing plan. A standard format makes the plan easier to read and evaluate for a bank or an investor.