Financial statements and projections. The body of the plan should include a summary of the key aspects of the financial forecasts, which appear in more detail in appendices. These may include total cash requirements, the time frame for positive cash flow and the anticipated growth in sales and profits.

The financial forecasts appendices should have more detail: balance sheets, income statements, and cash flow projections for a three- to five-year period, with the information presented monthly for the first year and quarterly in following years. The projected income statement is probably the most important projection.

The most significant aspect of the forecasts is the set of assumptions supporting your numbers. Make sure your discussion sufficiently communicates the basis of your assumptions — they must be realistic, logical, and attainable.

If you're not a financial statement guru, get help. Credible financial forecasts are so important — if you're not familiar with financial statements, you should seek help from an accountant or other reliable source.

Reality check. After you complete your draft business plan, circulate it for comment to friends, professionals, and other trusted advisors. Ask for their blunt assessments. Even better, ask them to give you a "markup" of the plan with specific recommended changes.

Write a Mini Business Plan

A two- or three-page business plan can also be useful at times. This condensed plan helps introduce the company to prospective investors, lenders, or employees. If the party is interested, you can follow up with the complete business plan.