Every new business venture begins with a plan. Before
opening your doors for business, whether virtual or physical,
you must be prepared for the many details involved in running
a business. Thinking through these details and putting them
on paper helps you to be prepared.
OBJECTIVES OF YOUR BUSINESS PLAN
A business plan lays out the future of your business. It is a
written document which tells what you do and how you plan
to do it. While your plan is a unique document designed for
your type of business, there are certain objectives contained
within any good business plan:
1. Sets forth goals and how they will be achieved.
2. Defines obstacles and outlines strategies to overcome them.
3. States the legal and organizational structure of the business.
4. Quantifies financial needs and makes financial projections.
LENGTH OF YOUR BUSINESS PLAN
The length of your plan depends on the purpose you will
use it for. If you need to acquire venture capital for your
business, you may need to provide extensive detail for
prospective investors. If your plan is simply a roadmap for
you to follow, it can be quite short. Whether it is one
paragraph or 100 pages depends entirely on your objectives.
YOUR BUSINESS PLAN IS UNIQUE
Business plans vary from industry to industry and from
business to business. No two plans are alike. Your emphasis
should be on providing an accurate and realistic presentation
of your business. Your plan is about you and your business -
this makes it a unique creation.
That said, you can still benefit by studying sample business
plans - like those at Bplans.com. Notice the various formats
and styles used by the authors. Do you see categories you
should include in your plan? How did the author structure
their writing to conclude a point? Take the lead from sample
plans to capture the tone and refine your own plan.
QUESTIONS TO ASK YOURSELF
A good business plan tackles three major areas. Look at
the questions within each of the three areas below and
answer them as they apply to your business.
1. The Business
What is the legal structure of your business? Will it be a sole
proprietorship, a partnership, or a corporation? What is the
name of your business? Who are the people in your business?
How is your business uniquely positioned to succeed? What
are existing conditions within your industry? How do you intend
to grow? What is your product? What does it do? How will you
handle and deliver orders?
2. The Market
Who are your customers? Why are they customers? What
motivates your customers? What need are you filling for these
customers? How will you motivate them to buy from you? How
will you find and attract these customers? Who is your
competition? What advantage do you have over your
competition? How will you position yourself to win market
share? Do you have technical data, surveys, or information
sources to back up your claims?
3. Finances
How much money are you bringing to your business? What
are your start-up costs? How will the money be used? When
will your business become profitable? What are your financial
projections for the next five years?
ELEMENTS OF A BUSINESS PLAN
Here are the key elements to include in your business plan.
Keep in mind that your business plan is unique to your
business, so don't be afraid to beef things up as needed.
Executive Summary - This is a summation of the important
points within your business plan. It should not be over three
pages long. This summary is of particular interest to potential
investors in your business, and allows them decide if you are
a worthy investment vehicle.
Company Summary - Describes your business, customer
focus, and your goals. Includes things such as your business
structure, start-up projections, and business location.
Products and Services - Describes what you have to offer, its
advantage to the customer, your reasoning for the need of
your product or service, and a look into your place among
the competition.
Market Analysis - Details the who, what, where, why, and
how of your market. Includes analysis of your industry and
your strengths therein.
Marketing and Sales Strategies - Key to this section is your
plan to operate in a competitive environment. Sales forecasts
and marketing details give an in-depth look at actual customer
acquisition.
Operations and Management - Fully details the structure and
operation of your organization.
Financial Plan - Provides a comprehensive look at business
cash flow, profit and loss, break-even analysis, and other
financial indicators.
In conclusion, your business is less likely to fail if you are
able to predict outcomes. Your business plan sets realistic
goals for success. The above information serves as a general
map. You fill in the details - as many as are needed. Most
assuredly, your efforts will be rewarded for years to come.
About the Author
Brett Krkosska provides 'how-to' advice on family and
home-based work issues. Get start-up guidance, business
ideas and inspiration at: http://homebiztools.com
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