Whether you want to start a large consulting business catering to Toronto firms or a small home based business, a business plan is an important document that you will need to begin with. A business plan serves as a road map for your business so that you and others can understand where your business is headed and how you plan to get there.

If you are applying for a private commercial mortgage or other forms of loans you will definitely need a business plan. This is because your lender will want to see that you have a viable business idea and that they are likely to have the loan repaid. Similarly, investors and partners will also be more likely to get on board if they can see that you have a viable business plan.

A business plan generally contains three parts. The first part is an executive summary. The executive summary is an overview of the business that does not provide a great deal of detail. Its purpose is to give the basic information that a person needs in order to see if they are interested in the business.

The second part of the plan is the body of the plan. The body goes into the details of your business plan, explaining your financing structure, providing sales forecasts and market data. This section should give the reader a thorough understanding of how you will operate your business.

In the body of your business plan you should provide a clear picture of the market for your business. If you are operating a day spa in Atlanta, for example, you should show that there is an under-served market for this service by showing that there are people interested in your service -- this can be done through demographic data or market surveys -- and that there are insufficient businesses catering to this demand.

The final section is the appendix to the plan. The appendix is a section where you can attach the sources of your data. This will usually include graphs, charts and raw data. Its purpose is to give critical readers and potential investors the opportunity to find the complete details that they will be expecting in your plan.

When applying for commercial mortgage loans it is important that your business plan provides all the financial information that your lender will expect. Much of this data can be included in the appendix.

Whether your business is a financial brokerage firm or a manure handling business for farms, a solid business plan will greatly benefit your business. By having a clear, detailed plan you will be able to show others that you understand how to run your business and it will help you to keep on top of the necessary tasks to make your business a success.