Business Plan Table of Contents Tips

By: Eric Powers Click author's name for more of his/her articles

A business plan’s table of contents is presented just after the cover sheet, giving a full overview of the sections within the plan. Why, you might ask, is a table of contents needed if the plan is intended to be read straight through, from start to finish, by its audience of potential funders? The reality is that readers will often want to jump around during and after their reading of the plan if they become engaged enough to consider it an option for funding.

Looking at Strategic Fit

Readers will be concerned with the strategic fit of your business concept. Strategic fit is how the activities of your organization work in concert to contribute to your competitive advantage. For example, if the competitive advantage discussed in your competitive analysis describes building a premium brand based on high quality, discussion of coupons and rampant discounting in your marketing plan may not jibe. In a sense, all of the aspects of your business must build towards achieving the competitive advantage you mention. There is good reason for readers to flip back to this section as they examine the rest of the document.

Comparing Numbers

Another reason why readers may jump around is to compare the numbers you present in the financial statements and financial summary at the end of the plan with the methods and tactics you detail earlier. They will look to see that, in their understanding, you will be able to accomplish what you say you will within the level of expenses you describe. They will also want to check that your revenue projections are reasonable given the market size and specific customer target markets you detail in your industry and customer analysis sections.

Preferences of Individual Funders

Different individuals reading your plan will have different backgrounds and expertise. They may feel most comfortable evaluating the section of your plan related most directly with their expertise (such as marketing, operations, finance, or human resources). For this reason, your plan must make it easy for readers to jump to any section they see fit. While the section may build upon ideas discussed in previous sections, each should also stand alone to a certain extent.

Business Planning Templates: How to Get Started

A business planning template can be an invaluable tool for a first-time entrepreneur or any entrepreneur working in an unfamiliar business sector. Using a template that is specific to your business sector can shortcut the work and formatting you have to do significantly. Here are three steps to make the best use of a template.

Read Through the Entire Template

First, read through the entire business plan template to understand the guidance it gives which you may make use of. Read both the sample text and financials and all comments and instructions given by the creators to help you along. By reading the template through, you get a sense of what the finished product might feel like and what type of work you must do to get your plan to this level.

Adjust the Financials

Before you do any writing, work on the financials to make them consistent with your plans. Enter your startup costs (after you have researched them) cost of goods sold, operating expenses, and revenue projections. The financial model with the template should help by automatically updating the financial statements of the plan based on the changes in these basic drivers. Check that the financial results (profit, return to investors, and cash reserves on hand) are appropriate for your business before moving on to the next step.

Customize the Plan

Next, customize the text of the plan starting with the company overview, working through to the end of the plan, and ending with the executive summary. As the executive summary pulls from every other section of the plan it is always best written last. Be sure that the language you use is entirely your own. Use sample text from the business plan template only as guidance to the tone and type of content you should use. Refer to guidance within the template to be sure you are fulfilling the purpose of each section as you write.

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About The Author: Eric Powers is associated with Growthink, a business plan consulting firm. Since 1999, Growthink's business plan consultants have developed more than 2,000 business plans. Call 800-506-5728 today for a free consultation. Or, if you're writing your own business plan, Growthink's simple business plan template can help you finish it quickly and easily.