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9 Essential Elements of a Good Business Plan

A business plan should be a work in progress. That’s because your business will evolve over time, and be influenced by outside factors such as the economy and local conditions. Even successful business owners should maintain a current business plan to ensure they remain knowledgeable on the elements that can affect continued success.

  • Business Plan Executive Summary
    The executive summary is Part 1 of the business plan and is the most important section of your plan. It provides a concise overview of the entire plan, along with a history of your company. This section tells your reader where…
  • Market Analysis
    The market analysis section is Part 2 of the business plan. This section should illustrate your knowledge about the particular industry your business is in. It should also present general highlights and conclusions of any marketing…
  • Company Description
    The company description is Part 3 of the business plan. Without going into detail, this section should include a high level look at how all of the different elements of your business fit together. The company description section…
  • Organization & Management
    Organization and Management is Part 4 of the business plan. This section should include: your company’s organizational structure, details about the ownership of your company, profiles of your management team, and the…
  • Marketing & Sales Management
    Marketing and Sales Strategies is Part 5 of your business plan. Marketing is the process of creating customers, and customers are the lifeblood of your business. In this section, the first thing you want to do is define your…
  • Service or Product Line
    Service or Product Line is Part 6 of your business plan. What are you selling? In this section, describe your service or product, emphasizing the benefits to potential and current customers. For example, don’t tell your readers…
  • Funding Request
    The Funding Request is Part 7 of your business plan. In this section, you will request the amount of funding you will need to start or expand your business. If necessary, you can include different funding scenarios, such as a best…
  • Financials
    Financials is Part 8 of your business plan. The financials should be developed after you’ve analyzed the market and set clear objectives. That’s when you can allocate resources efficiently. The following is a list of the…
  • Appendix
    The Appendix is Part 9 of your business plan. This section should be provided to readers on an as-needed basis. In other words, it should not be included with the main body of your business plan. Your plan is your communication tool…

    The Comprehensive Business Plan Workbook

    A Step by Step Guide to Effective Business Planning



August 30, 2011 Short URL
Articles

Business Planning: Starting a Business

In this section, we have brought together the resources you need to get your business started. Whether you’re sitting down to write your business plan, wondering about your legal obligations, or researching your financing options, you’ll find the information you need right here.

  • Thinking About Starting

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August 30, 2011 Short URL
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Who Needs Business Plan

The only person who doesn’t need a business plan is one who’s not going into business. You don’t need a plan to start a hobby or to moonlight from your regular job. But anybody beginning or extending a venture that will consume significant resources of money, energy or time, and that is expected to return a profit should take the time to draft some kind of plan.

 

So if you fall in any one of the following, I bet you need to grab your business plan to ensure your profit.

  •  You need a business plan if you’re running a business.

A business plan is like a map and a compass for a business. Without it you’re traveling blind. With a plan you set objectives, establish priorities, and provide for cash flow.

  • You need a business plan if you’re applying for a business loan.

Most banks require it, and even those that don’t strictly require it expect it. They expect it to be a summary of the business, with some predictable key points.

  • You need a business plan if you’re looking for business investment.

The plan won’t get you the investment, but not having a plan will mean you won’t get investment. Investors require a business plan. They invest in the people, the idea, the track records, the market, the technology, and other factors; but they look to the business plan to define and explain the business.

  •  You need a business plan if you’re working with partners.

The business plan defines agreements between partners about what’s going to happen.

You need a business plan to communicate with a management team.

The day-to-day business routine is distracting, problems come up, opportunities appear, and commitments should be followed and tracked. How do you know where you are in business without establishing where you started and where you intended to go? How can people commit to a plan they can’t see?

  • You need a business plan to sell a business, or to set a value on a business for tax or other purposes such as estate planning, or divorce.

 

Sadly, many of the people who need a plan don’t know they need it. They get trapped by the myths of business planning. They don’t realize that plans are not just for start-ups, loans, or investment. They don’t realize that business plans are easier to develop than most people think. To succeed in business you simply must plan the steps, set priorities, allocate resources, and manage the cash. Sure, some people say they don’t plan, but if they’re successful then they’re actually always planning in their heads. And you can keep that plan in your head if your business is very simple, cash flow is always adequate, you don’t work with other people, and you don’t need to communicate your business plan with other people either.

Don’t accept disadvantages in business. Don’t try to run without a plan. Doing a plan is probably much easier than you think, and much more valuable.

 

Resources:

http://en.wikipedia.org/wiki/Business_plan

http://articles.bplans.com/writing-a-business-plan/who-needs-a-business-plan

 

Need Business Plan? Click Here for the largest business plan database in the world. They supply OVER 2500 business plans in more industries than any other company from  A2Z listing…

August 24, 2011 Short URL
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Creating a Business Plan

This is an outline of a basic business plan.

1) Mission Statement and Executive Summary

What is your goal for this business?

Give a 2-3 sentence summary of what your business will do.

2) Business Description

Write several paragraphs describing how you will make money, the market you are targeting, and what makes your business unique.

3) Operations Plan

a) Location

b) Physical Facility

c) Supply and Labor

What will your office look like, where will it be located, will you need any special facilities for loading and unloading or storing inventory. What is your plan for supplying your business and what labor skills will you need to get started. How many workers?

4) Market Analysis

a) Industry Trends

b) Description of Total Market

c) Target Market

d) Demand for Product/Service

e) Analysis of Competition

f) Product/Service Differentiation

This is where you need to make sure you understand your marker thoroughly. What are the market’s current trends? If businesses in your market are shutting down, why are they closing? Describe what the total market looks like; the size, type of consumer, and geographic area are all important here. List the specific part of the market you will be targeting. If you are selling custom gardens, the larger market is home and garden, but your specific market is landscaping in your geographic area. What does the direct competition look like, how much do they make. How many people want to buy your product and what makes it different from everyone else’s version. Differentiation can be as simple as being more convenient, cheaper, or higher quality.

5) Sales Strategy

a) Pricing Policy

b) Distribution/Hours of Operation

c) Promotional Efforts

How much will you charge, and when is your business working? If you run a janitorial service, your hours are much different from a clothing store. How will you get your first customers in the door?

6) Management Profile

a) Personal History of Key Participants

b) Duties and Responsibilities of Key Participants

c) Compensation

d) Available Resources/Talents

Who are you going into business with and how long have you known them? Are there clear areas of responsibility? Make sure you know who is in charge and look at everyone’s talents and background to see if there is a skill you will need to get elsewhere. Perhaps you need to find an accountant or make sure you hire someone with an advertising background.

7) Financial Analysis

a) Project Costs

b) Source and Use of Funds

c) Capital Equipment List

d) Income Statement Projection

e) Monthly Cash Flow Projection and Assumptions

f) Balance Sheet Projections

g) Personal Financial Statement

h) Personal Income Tax Returns (3 Years)

This is where you dig into the numbers on what your business can make. How much will it cost to get started, where are the funds coming from, and what do you project the business will make 2, 6, and 12 months down the road. Personal financial information is especially important if you are starting the business with a personal loan. If the business fails, that loan will be yours to repay.

8) Supporting Documents

a) Floor Plan and Overhead View

b) Market Research

c) Remodeling Cost Estimate and Equipment Bids

Extra documents that are important are the layout of your store, any applicable market research, and bids or estimates you have received for getting your store into working order.

Good luck

 

 

July 28, 2011 Short URL