Key Components of a Business Plan

Balanced Scorecard Strategy For Dummies

Writing a business plan is a big task, and no two business plans are alike. But most effective plans include the following major elements. As you write your business plan, come back to this list of key components to make sure your plan is complete and thorough.

Company overview: Your mission, vision, values, products, unique attributes, and the business opportunity you plan to seize
Business environment: An analysis of your industry, your marketplace, your customers, your competition, and how you stack up
Company description: The capabilities that give you a unique advantage over your competitors — including your management, technology, operations, distribution, service, finances, and marketing
Company strategy: Your roadmap to the future (including how you'll seize opportunities and avoid threats), your growth plans, your marketing plan, and even your exit strategy
Financial review: The state of your finances, including your income statement, balance sheet, cash flow statement, profit projection, and budget
Action plan: Steps you'll take to implement your business plan to meet your goals and objectives

About This Article

About the book author:

Steven Peterson, PhD, is the founder and CEO of Strategic Play and an Executive Education Lecturer at the Haas Business School.

Peter Jaret is a frequent contributor to The New York Times, Reader’s Digest, and AARP Bulletin.

Barbara Findlay Schenck is a nationally recognized marketing specialist and the author of several books, including Small Business Marketing Kit For Dummies.