What is a business plan?

A business plan precisely defines your business, identifies your goals, and serves as your firm's resume. The basic components include a current and pro forma balance sheet, an income statement, and a cash flow analysis. It helps you allocate resources properly, handle unforeseen complications, and make good business decisions. Because it provides specific and organized information about your company and how you will repay borrowed money, a good business plan is a crucial part of any loan application. Additionally, it informs sales personnel, suppliers, and others about your operations and goals.
Source: U.S. Small Business Administration

What goes in a business plan?

The body of a business can be divided into four distinct sections:

1) Description of the business
2) Marketing
3) Finances
4) Management

Addenda should include an executive summary, supporting documents, and financial projections.
Parts of a Business Plan

I. The Business


A. Description of business
B. Marketing
C. Competition
D. Operating procedures
E. Personnel
F. Business insurance


II. Financial Data


A. Loan applications
B. Capital equipment and supply list
C. Balance sheet
D. Breakeven analysis
E. Pro-forma income projections (profit & loss statements)


a. Three-year summary
b. Detail by month, first year
c. Detail by quarters, second and third years
d. Assumptions upon which projections were based
F. Pro-forma cash flow


III. Supporting Documents