Writing your Business Plan

Even when a business plan is successfully drawn up remember that it will evolve as a work in progress.  A business that is growing should update the business plan in order to keep it current.

This outline can serve as a guide to writing a common business plan.  Based on the specific needs of your business you can adapt it to meet those needs.  The task of writing your business plan is made easier by breaking the task down into its smaller components.

The introduction

• Furnish a description of your business in detail along with future goals.
• Address both the legal and business ownership structure.
• Make sure to mention what you bring to the business in terms of skill and experience.
• Address any competitive business advantages your business has over competitors.

Marketing

• Discuss the various services and lines of products which will be offered.
• For your products and services you should identify the consumer demands.
• Recognize and identify where your market is. Both its location and size.
• Address your advertising and marketing plans for your products.
• Identify the pricing strategy for your products and services.

Financial Management

• Disclose your starting equity capital and the source of it.
• Work through the business’s first years operating budget.
• Project cash flow on a monthly basis and investment returns for the first year.
• Develop balance sheets and project income for a period of two years.
• Calculate out your breakeven point.
• Disclose your compensation, the method of compensation and explain your personal balance sheet.
• Address various approaches to “what if” situations for potential problems which may come up.
• Explain how your accounting records will be kept and who will maintain them.

Operations

• Develop and explain how the day to day operation of the business will be managed.
• Explain your human resources policies with hiring employees and employee relations.
• Explain any rental or lease agreements pertaining to the business.
• Cover any insurance issues for your business.
• Explain how production will be carried out and address the delivery of those goods or services.

Concluding Statement for Business

• Offer a summary of the objectives and goals for the business.
• Emphasize the importance of the success of the business.
• Review the completed business plan with a business associate or friend.
• After you have reached a comfort level with the business plan make an appointment with your financial representative to review it.
• Remember that your business plan is not written in granite. It is a document that should change as your business grows or market conditions change.