162 | HOW TO WRITE A BUSINESS PLAN
Finally, Antoinette writes a narrative
summary, which is shown below.
Section Introductions
When you look over your plan, you may
notice that some of the sections seem
incomplete or that one section doesn’t flow
into the next. If so, you have these options:
• write short introductions to those
sections that need more explanation
• rewrite the entire plan into a single
comprehensive narrative, taking care to
cover every important point, or
• leave the plan as is—it’s possible that
your circumstances make it appropriate
to use rough drafts and financial docu-
ments and nothing more.
Many of you will take a middle course
of rewriting some of your earlier work,
presenting some of it intact, and providing
written introductions and summaries for
others. If you write a narrative or introduc-
tion, keep your writing as short as possible
while presenting all your conclusions and
assumptions.
Sections that typically benefit by short
narrative introductions include:
• Profit and Loss Forecast. You don’t
need a lengthy treatise, but you
should describe the assumptions you
made about the significant numbers.
Explain how you derived the sales
volume forecast you used to create
the Profit and Loss Forecast; your
backers will be extremely interested
in those assumptions. Also list your
major assumptions about cost of sales
and fixed expenses that you used in
creating the Profit and Loss Forecast.
You may choose to make lists instead
of writing a prose narrative. Finally,
summarize the annual sales and profit
figures you forecast.
• Capital Spending Plan and Cash Flow
Forecast. This narrative should list
the major assumptions you made
in adjusting your monthly profits to
derive the monthly cash flow. Also
summarize the preopening costs you’ll
incur. Mention whether or not you will
sell on credit or seek extended terms
from your suppliers and how long it
will be before your customers pay you
and before you pay your suppliers.
(See Chapter 7 for more details.)Personal Goal Statement
You may include a statement of your
personal goals. It is a tricky part of
your plan, even though it’s a big help to
potential backers who don’t know you
personally. Your lenders and backers want
you to be happy in your new venture,
since you’ll be likely to work hard at it.
However, people who back you will also
want to be sure that you’re truly committed
to the financial success of your project.
For instance, they won’t back a beekeeper
who loves bees so much she can’t stand
to disturb them by removing honey from
the hive.