Business Plans

How to Write a Business Plan

A business plan generally projects 3-5 years ahead and outlines the route a company intends to take to grow revenues. Creating a business plan will help you achieve your entrepreneurial goals. A clear and compelling business plan provides you with a guide for building a successful enterprise focused on achieving your personal and financial goals. It can also help persuade others, including banks, to invest in what you are creating. Think of it as the road map to your business's future.

A finance provider will review any business plan submitted; it is essential that your plan relates to your business and you do not rely on a generic document.

Executive Summary

Company Description

Products and Services

Marketing Plan

Operational Plan

Management & Organization

Startup Expenses & Capitalization

Financial Plan

Appendices

REASEARCH

Analyze the potential markets for your business

Who are your customers ?

Is there a viable market for the product or service you want to sell?

How old are your potential customers?

What do they do for a living?

Is your product or service attractive to a particular ethnic or economic population?

Will only wealthy people be able to afford it?

Does your ideal customer live in a certain type of neighborhood or area?

Establish the size of your potential market

Identify your company’s initial needs.

Prepare product samples

Research possible locations for your business

Determine your start-up cost

Put yourself in the shoes of potential investors

Identify potential investors

DEFINE YOUR COMPANY

Identify potential investors

Choose a winning strategy

Design your company

issues of running a business

WRITE YOUR BUSINESS PLAN

Organize all the relevant information about your business

Title Page and Table of Contents

Executive Summary, in which you summarize your vision for the company. This plan includes this summary, and chapters on the company, products and services, market focus, action plans and forecasts, management team, and financial plan.

General Company Description, in which you provide an overview of your company and the service it provides to its market, What is a summary of your company. Ownership history., Include a balance sheet.

Products and Services, in which you describe, in detail, your unique product or service. Competitive comparison. Current products and future products. Include brochure.

Operational Plan, in which you describe how the business will be operated on a day-to-day basis. Strategy and implementation.

Management and Organization, in which you describe the structure of your organization and the philosophy that governs it

Financial Plan, sales forecast and sales strategy.

Write the executive summary last

Gather all the information together and prepare multiple drafts

Sell yourself and your business

Present and explain your financial data

Ideas to Improve Your Financial Health

Create a safety net. Plan to have a minimum savings balance to cover at least three months' of expenses (ideally, this should be six to 12 months). If your reserves are light, start saving now. Even if it is a little amount, it can get you on the right track.

Develop a budget. At least once a year develop a basic budget. Set goals and try to hit them. If this seems overwhelming, start simple. What is coming in and what goes out each month? Becoming aware is the first step to improving your financial health.

Make your spouse a financial partner. If you die, does your significant other know where everything is? Can he/she pay the bills? Does he know where account numbers are? Does your spouse know who you use to help with things? If not, it is time to start talking.

Review your beneficiaries. Once a year review beneficiaries on all accounts. This includes retirement accounts as well as names on wills and estate plans. The legal hassle created without this review can be devastating to your surviving family. This is especially important if you had a recent life event (marriage, divorce, birth or death).

Maximize your benefits. Make sure you review your retirement plans to maximize any employer match in your account. Also review your plan's administrative expenses. If they are too high they can cost you thousands of dollars over your lifetime.

Create a disaster plan. If your home burned down or was flooded, are your important records easily accessible and protected? If not, consider creating a disaster plan. This may include placing important documents in a safe deposit box in another location than your home.

Review your credit report. With the recent increase in identity fraud, plan to check your credit with the major credit agencies once a year. The agencies are legally required to make their report available to you annually without charge.

Review your insurance plans. Periodically look at your health, life, home and liability insurance. With the legal nature of our society, you might consider the need for an umbrella policy to cover against potential litigation. But also consider flood insurance and a replacement value homeowner's policy.

Manage your debt. Review your use of credit cards, loans, etc. Understand your net worth (assets minus liabilities). Make progress in reducing your debt load starting with the highest interest obligations first. Is your debt lower than it was last year?

Plan for fun. Just because you are taking steps to improve your financial situation doesn't mean that you can't have fun. Be smart about your entertainment spending. If you are planning a vacation, research money-conscience options and have a budget that fits in with your other financial goals.