Rob went to the bank to apply for a loan to start a new business. The bank officer requested a business plan from Rob. Rob did not know the purpose of a business plan nor what it contains. Provide Rob with an explanation of a business plan. What are the basic elements that Rob must include in his business plan to present to the banking officer?

A business plan describes all the details necessary to set the direction for a new business and to obtain the necessary financing to operate it. The items listed below are elements that should be incorporated into a business plan:
Executive summary - overview of business purpose and highlights of key elements of the plan.
Industry analysis - nature of the industry, including economic trends, important legal or regulatory issues, and potential risks.
Company description - mission, owners, and legal form.
Products and services description - major goods or services, with special focus on uniqueness vis-à-vis competition.
Market description - size of market, competitor strengths and weaknesses, and five-year sales goals.
Marketing strategy - product characteristics, distribution, promotion, pricing, and market research.
Operations description - manufacturing or service methods, supplies and suppliers, and control procedures.
Staffing description - management and staffing skills needed and available, compensation, and human resource management systems.
Financial projection - cash flow projections for one to five years, break-even points, and phased investment capital.
Capital needs - amount of funds needed to run the business, amount available, and amount requested from new sources.
Milestones - a timetable of dates showing when key stages of the new venture will be completed.