Writing A Business Plan

Before you invest money in buying expensive office equipment and stationary you should have a clear idea of what your goals are and the steps you will need to take in order to achieve them. This is called strategic planning. It would be nearly impossible to succeed without planning. Most companies and individuals clearly outline their objectives in a formal business plan. If you are planning to seek out investors or will need to secure a loan you simply must have a business plan.

Business Plan Outline

A business plan will include some general information regarding:

* The product or service.
* The target market.
* Marketing strategy.
* Available resources.

More detailed information would include:

* The current demand for the particular products or services that your company will be providing.
* Competitive analysis and the reasons why potential customers would buy from your company.
* Budget forecasts for proposed marketing initiatives and prospective return on investment.
* Assets and liabilities including available funds and projected investments if applicable.

This information will help you to assess whether or not the company can be successful and make some predictions as to how long it may take to become profitable.

General components of a successful business plan will include:

1. Table of Contents
2. Executive Summary
3. Management Structure
4. Business Description
5. Market Analysis & Sales Initiatives
6. Products & Services
7. Financial Information
8. Appendices


I. Table Of Contents

The table of contents is basically a reference to all of the sections contained in the business plan.

II. Executive Summary

The executive summary is a very important section of your business plan. It is basically the part of the plan that should capture the attention of the reader. In the executive summary you will present the company as it exists today, the history and the future projections of the company and how it is expected to grow.

It may make sense to write the executive summary last since it is basically a summary of your business plan, unless you already have a clear overview of your plans and are capable of presenting it in a clear and concise manner to your reader.


Contents of the Executive Summary

* The Mission Statement - A short explanation of your business initiatives.
* Start Date
* Name founders and their functions
* Number of employees
* Location of business
* Description of facilities/offices
* Products manufactured/services rendered
* Banking relationships and information regarding current investors
* Summary of company growth and development
* Summary of management's future plans


If you're just starting a business you can focus on explaining the market, the pros and cons and what sets your company apart from other companies. You should basically convince investors that your company has what it takes to compete successfully and that their investment will gain substantial returns.

III. Organization & Management

Important ownership information that should be incorporated into your business plan includes:

* Names of owners
* Percentage ownership
* Extent of involvement with the company
* Forms of ownership (common stock etc)

The strength of any organization lay in the capabilities of its people. You should make certain that you clearly identify who does what in your organization. Management profiles should include some background information on board members as well as the responsibilities of the management team.

If possible you should include resumes of those involved in the company.

* Name
* Position
* Primary responsibilities and authority
* Education
* Unique experience and skills
* Prior employment
* Special skills
* Past track record
* Industry recognition
* Community involvement
* Number of years with company
* Compensation basis and levels

If you are running the business yourself make sure you identify your strengths and how you plan to handle growth. In essence if you are planning to operate the business yourself then you must understand that your business plan will need to sell your business idea and more importantly, you capabilities.

IV. Business Description

In this section you should:

1. Describe the nature of your business and explain the needs that you intend to satisfy in the marketplace.
2. Identify the individuals and businesses that will purchase your products and/or services and how you will reach them.
3. Explain how you are different or better than other companies providing the same products and/or services.


V. Market Analysis

Effective marketing is essential to the success of any business. Although marketing strategies vary and in most cases evolve over time it would not be as important to detail any one specific strategy, rather you should, demonstrate your understanding of the various methods to identify and create your customers.

Your Marketing Strategy should include:

* Market penetration strategy
* Strategy for growing your business.
* Channels of distribution strategy.
* Communication strategy or basically.


Your Overall Sales Strategy should include detailed information on how you plan to execute your sales initiatives. Include some key selling points and the resources that will be utilized such as sales representatives, affiliate programs and methods.

VI. Service or Product Line

Describe your products and services and identify how your products or service will address the needs of your customers.

Include product life cycle, research and development and also include any information regarding patents and trade secrets that you feel are appropriate (if necessary).

VII. Financial Information

Detail your assets and liabilities. Include information regarding company investments and funding required. Also describe how funds will be dispersed (including funds not yet secured).