Tax & Business Services
The Business of Planning: Your Business Plan
The positive is that your business is going to be a success, right? That's because you have fail-safe plans to get your start-up business going and keep it that way. Unfortunately, it's not enough to have it in your head; you need to write these plans down and figure out how to make your dreams come true.
The business plan is important not only for you, but for investors and lenders. If you want to get financing for your small business, you will need to show potential lenders a well-written and complete business plan. But don't panic yet. You may already know a lot more than you think.
Most successful small business owners start with a loose plan and revise it as more details become available. Some of the crucial areas to cover in a business plan are:
The positive is that your business is going to be a success, right? That's because you have fail-safe plans to get your start-up business going and keep it that way. Unfortunately, it's not enough to have it in your head; you need to write these plans down and figure out how to make your dreams come true.
The business plan is important not only for you, but for investors and lenders. If you want to get financing for your small business, you will need to show potential lenders a well-written and complete business plan. But don't panic yet. You may already know a lot more than you think.
The Written Plan
A business plan is a document that describes the nature of your business. It also outlines the future plans and strategies you're going to implement in order to reach your goals. You can't plan for everything, but investigating where you may have difficulty might help you down the road.Most successful small business owners start with a loose plan and revise it as more details become available. Some of the crucial areas to cover in a business plan are:
- Title Page - Include your company's name and contact information as well as a notice of proprietary information.
- Table of Contents - This will help you and readers find sections they need quickly.
- Executive Summary - Give a brief summary the nature of your business, as well as your current business situation.
- Business Description - Show the history and future plans for the company.
- Products and/or Services - Explain what the products and/or services are and what differentiates them from competition.
- The Current Market - Give an overview of the market where your business is going to reside.
- Marketing Strategies - Explain how you're going to establish your business and customer base.
- Management/Ownership - Name the people in charge and give an overview of their backgrounds and skills.
- Competitive Analysis - By describing your competition and their successes and failures, you'll be able to show how your small business will differentiate itself from the rest.
- Financial Statements/Projections - Provide your income statement, balance sheet and statement of cash flow.
- Appendices - This is a catch-all for more background information you want to provide: organization charts, résumés, etc.