A comprehensive business plan will prove invaluable whether you’re in the research phase or close to finalising a purchase. A thriving business will always have a detailed business plan, supporting its longevity and profitability and assisting in obtaining finance for the initial purchase or future expansion.

By putting this document together, you’ll view your prospective business through a new lens and be able to identify its past, present, and future with a vision for success. You’ll find yourself referring back to your plan frequently, and it will evolve alongside your business growth.

Your business plan leads with your Executive Summary and Business Background, a place for you to define and expand on the ‘elevator pitch’ of the business you’re interested in purchasing.

The Executive Summary & Your Business Plan

Your Executive Summary establishes the what of your business plan, and this section should illustrate a snapshot of what your (soon-to-be) business offers the market.

Remember that if you share this document with potential investors, the Executive Summary will be read first. You want to capture the pertinent business details, showcase what makes it viable and profitable, and encourage viewers to read on.

Think of your Executive Summary as the teaser blurb of a book – you may only have a paragraph or less to spark interest in the reader, so keep your wording punchy, to the point and clear.

You’ll also want to discuss your business’s current phase, such as whether it’s a startup that’s recently launched or in the process of expanding.

Next, you’ll detail your growth plan. How do you plan to grow the business, and what are the key drivers that will allow you to move forward with increased capacity and capabilities? This segment of your document is also where you’ll drill down on the business’s unique selling points and identify the factors that will ensure future growth after you’ve purchased it.

Your Executive Summary should distil your business down to the essential points. If you struggle to articulate this part of your Business Plan, you may wish to progress further along with the document. Once you’ve had time to deep-dive into other business areas, you can circle back to your executive summary with a clearer view of the need-to-know points.

The Business Background 

The second section of your Business Plan is your Business Background, the area where you’ll set out the specifics of the business. Depending on the business you’re considering, there may be a lot of information to get through, so keep your writing lean and factual, as much of your Business Background section will be reporting the critical details.

To start, you’ll want to include the specific type of business (retail, manufacturing, or service-based), business facilities and location, the number of employees and their roles, and the organisational and operational structure.

Next, summarise the business’s track record and what has happened to get it to where it is today. You may like to lay out a chronological list highlighting major business points, e.g., launch date, relocation, or new ownership. You’ll also want to note any key business pivots that have occurred up until this point.

Once you have this critical information written, it’s time to identify your short-term and long-term goals for the business and the date you aim to complete them. These may be revenue-focused goals that target new additions to your team of employees or increase your marketing reach. Short-term goals will keep you on track across the business’s day-to-day success, while well-considered long-term goals will ensure that you stay on your trajectory to hit key business milestones with a vision for big-picture growth.

Finally, your business background should include the products and/or services, locations and outlets, and any I.P. the business owns. Clearly outline all relevant details if you’re describing a service or product.

Conclusion

By now, you’ve completed the first segment of your Business Plan. A foundation on which you can build the remaining sections of the document. Remember, your business plan is an important safeguard. When purchasing a business, you build one as a blueprint for your future success.

Read the next part of the series Your Business Plan Part 2: Business Strategy.