What Matters in a Business Plan

Quick Insight

What to include in your business plan is based on who is going to read it. Banks will be focused on cash flow. Investors are more focused on profitability and company value. Business plans are still useful if you are the only one who will read them. Taking ideas out of your head and onto paper (or a computer screen) allows you to assess your ideas more objectively.

What to include in your business plan is based on who is going to read it. The audience and purpose of the plan determine the content.

Banks will be focused on cash flow. Your focus for the plan is showing that you have solid cash flow to pay back the loan. Show different sources of cash flow and the financial strength of the owners. You could include an alternate scenario showing you can repay the loan even if reality is less rosy than your plan. Banks also lend based on collateral, so include information about whatever you plan to pledge as collateral.

Investors are more focused on profitability and company value. Spend more time on how you will create a profitable and valuable company. Show that you have an experienced management team in place. If you are a startup, include your burn rate and expectations for future funding. 

Business plans are still useful if you are the only one who will read them. Taking ideas out of your head and onto paper (or a computer screen) allows you to assess your ideas more objectively. Explore and eliminate ideas while planning.  

I wish you a business plan that helps you build a better business. I wish you well.

- Rob Stephens

Further Insight

CFO Perspective Resources

  • Video: The Business Growth Checklist - Business growth provides many benefits, but you must be ready for growth to capture those benefits. Growth can also come with many drawbacks, especially if you aren’t ready for it. Business owners are often surprised by some of these drawbacks. I’ll walk you through the critical questions you must ask to make sure you are ready for profitable growth.
  • Course: Entrepreneurial Finance - Small Business Financial Management Basics - Get a financial overview of the entrepreneurial journey from startup to operational decisions to exit planning. You’ll hear from a business banker guest speaker who explains what lenders look at when deciding whether to make a loan to a small business.

This simple PDF template allows you to quickly define in one page the key items for a strategic plan.

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