Why Develop a Business Plan?
In the book The Entrepreneur’s Manual, Richard M. White, Jr. states that
business plans are “road maps” for business creation: “You identify your origin, select a
destination, and plot the shortest distance between the two points.”
True, a business plan is essentially a blueprint for a business. However, it also
serves many other purposes:
 A business plan is a detailed blueprint for the activities needed to establish a business
(i.e. the details of a product or service, the market for that product or service, and the
management of the business providing that product or service).
 A business plan is also the ‘yardstick’ by which a business owner measures success in
meeting stated goals and objectives.
 Also, a business plan is a tool for obtaining a loan from a lending agency, or for
attracting venture capital.
What Does a Business Plan Look Like?
There is no standard format for a business plan, but there are many common
components of a business plan:
 Executive Summary (providing a general overview of the plan’s main points)
 Table of Contents
 (Brief) Background and History
 Business Goals and Objectives
 Description of Products/Services
 Market Description/Assessment
 Competition Assessment
 Marketing Strategies
 Manufacturing Plans
 Pro Forma Financial Analysis
 Contingency Plans
Many business plans will also include appendixes with additional information
related to the business, its operations, its owners/managers, marketing/promotional plans,
etc.
Of course, the best way to illustrate a business plan is to provide one. The
following plan for a completely fictional business is used for a monthly entrepreneur
workshop at Oklahoma State University’s Food & Agricultural Products Center, entitled
“Food Business Basics: A Guide to Starting Your Own Food Business.” This mock
business plan focuses on a whipped topping business, but the format is appropriate for
any small food business.