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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. |
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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
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 small business and home-based work issues. His
site, http://www.HomeBizTools.com, helps small
businesses reach their fullest potential. He is also the publisher of Straight Talk, a
fresh and original newsletter that offers a unique perspective on today's business issues.
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| Real-world, common sense strategies
for small and home based business success. Your issues... real answers. |
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