Skip to main content

Writing the Essential Business Plan

It's tempting to jump in with both feet when starting a business. There's so much to do, from choosing a company name to finding employees. Before adding too many items to your to-do list, though, take a deep breath, sit down at your computer and write out a business plan. A business plan serves two main purposes.
  1. It is a resource for leaders within your company to follow throughout the life of the business.
  2. It is a resource for others such as investors and creditors to learn about your company.
Each business plan is unique to the company that creates it. Length and content may vary based on the audience that will view the plan. If you are writing for investors, focus on the financials. If you are writing for creditors, include information that explains how they will be repaid. Because your company is a growing and changing business, your business plan will also change, but by including key information about your company you will always have a jumping off point for making key decisions. Some common elements of a business plan include the following:
  • The Executive Summary--The executive summary is a short overview of your business plan that entices readers to read the entire plan. It describes your business concept including a description of your product or service, the market you will serve, your unique business attributes and financial highlights.
  • Business Profile--In this section of the business plan, provide detailed information about your company’s history, ownership structure, company locations and your start-up costs. Start-up costs could include costs to develop your product, license fees, insurance costs, rental fees, and marketing costs. You can also include capital you have available when you launch the business.
  • Products or Services--Tell readers what you sell and why it would be a benefit for them to purchase your product or service. If you have developed a product or service to meet a market need, mention that here. Explain what features of your product or service make it different from the competition and why those differences are important to consumers.
  • Market Analysis--Define the market characteristics where you will be offering your product or service. List industry trends, past growth rates, current sales and industry size and growth forecasts for the future. Also include any regulatory restrictions on your industry and costs involved with abiding by those restrictions. Also include information about your target market. The target market is specific segments or niches of the market you will sell to. Don’t forget to include a list of your competitors.
  • Financials--It is important to have a good grasp on the financial health of your company even if you are in the early stages of your business launch. Investors, potential partners, creditors, even future employees want to know what capital you have available and what you will need to operate. In this section include balance sheets, income statements, and cash flow statements for a 12-month period. If you’re business is just getting off the ground, supply realistic forecasted financial information. An accountant can help prepare these documents if you don't feel comfortable doing so.
Keep your business plan concise by only including relevant information--no filler. Bullet points, headings and short paragraphs make for easier reading.




Labels:

Comments

Post a Comment

Popular posts from this blog

A Moment in the Life of a Homepreneur

I was at home preparing for a big meeting when I noticed my flash drive was missing--and with it, my presentation. I had put the drive on my kitchen counter next to my portfolio and cell phone--but it had disappeared. I looked everywhere. It wasn't under the bread bag on the counter, or the pile of refrigerator letters on the floor. I checked the kitchen table which was still covered with breakfast dishes. Nothing. Then I went up to my child's room. She was in the middle of imaginative play and I rudely interrupted her by opening her bedroom door. "Have you seen my flash drive?" I asked in a panic. "No," she said. I was nearly in tears. This was the biggest meeting of my career. I had five minutes to get out the door, and the tiny drive was missing. Then I looked at my child's toy. She was galloping a horse through a field of blocks and string. Around the horse's neck was a bridle made of bright blue ribbon. At the end of the ribbon was my fla
Post a Comment
Read more

Organization Will Save Your Organization

In the office, you had a small corner of the corporate world from which to ply your trade. You may have had a cubby in cubicle city or an office with a window. Either way, your space was compact, standardized, and vacuumed by the night cleaning crew. Not so at home. Unless you live in a studio apartment, you home has multiple rooms to spread out your stuff. And stuff can make a mess. Receipts, contact business cards, and paperwork all pile up quickly. Mix in your personal bills, magazines, and junk mail and you have business paper chaos. Searching through stacks of paperwork reduces productivity and can lead to errors. Organization isn’t complicated. It just requires a little extra effort and a method to sort through the madness. Step 1: Set aside space for a filing cabinet. In today’s electronic business world much is done through e-mail, fax and phone, but paper still exists and needs to be stored. Create a file for bills, customer documents, and receipts. You may need these docume
Post a Comment
Read more

Responsible Record-Keeping

Maintaining your businesses financial health is a combination of planning, organization and financial management. Many businesses have been sunk by bad record keeping. Here’s an example. A dear friend, who happens to be an accountant, hired a furnace expert to solve a heating problem. He came to her house, identified the problem and quickly got to work. The repair took a short time and her furnace worked marvelously. She thanked the repairman profusely and sent him on his way. He told her the bill would arrive in the mail. Two weeks passed. No bill arrived. Another week passed and no bill. She called his office to remind him to send a bill. Another week passed and she called again. The bill never came. Bad business? Yes. Rare? No. Ask a dozen people and you are likely to hear similar stories. If a client has to ask you multiple times for an invoice, your business is doomed. A few simple steps when you start your business will save you headaches and lost business down the road. First,
Post a Comment
Read more