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Put it in writing [Sample Business Plan]

Developing your business plan is your road map to success in the business world. A business plan is a written document that outlines measures and actions to define where you want to go and how you will get there. Without a business plan, you have no written goals or objectives to measure your success. Starting a business is a full of uncertainties. Developing a thorough business plan helps minimize those uncertainties.

To help you figure out why you want to start a business check out Ideas for Your Business..

Before you begin writing your business plan, consider these questions:

What service or product does your business provide, and what need does it fill?
Who are the potential customers for your product or service, and why will they purchase it from you?
How will you reach your potential customers?
Where will you get the financial resources to start your business?
Do you really want to give up baseball, hockey, soccer, basketball, football, dance, piano and voice, or hanging out with or going to the mall with your friends to run this business?
Will you have to run your business every day or just sometimes?
Will running your business have an effect on school?
Will your family help you out?

The business plan is your guide. You can adapt it to your specific business. Dividing the plan into several components helps make drafting it a more manageable task.

Introduction

Give a detailed description of the business and its goals.
Discuss the ownership of the business and the legal structure.
List the skills and experience you bring to the business.
Discuss the advantages you and your business have over your competitors.

Marketing

Discuss the products/services offered.
Identify the customer demand for your product/service.
Identify your market, its size and locations.
Explain how your product/service will be advertised and marketed.
Explain the pricing strategy.

Financial Management

Explain your source and discuss the amount of initial equity capital you’ll need.
Develop a monthly operating budget for the first year.
Develop an expected return on investment and monthly cash flow for the first year.
Provide projected income statements and balance sheets for a two-year period.
Discuss your breakeven point.
Explain your personal balance sheet and method of compensation.
Discuss who will maintain your accounting records and how they will be kept.
Provide "what if" statements that address alternative approaches to any problem that may develop.

Operations

Explain how the business will be managed on a day-to-day basis.
Discuss hiring and personnel procedures.
Discuss insurance, lease or rent agreements, and issues pertinent to your business.
Account for the equipment necessary to produce your products or services.
Account for production and delivery of products and services.

Concluding Statement

Summarize your business goals and objectives and express your commitment to the success of your business.

Resources

For a more in-depth look at writing a business plan go to: www.sba.gov/starting_business/planning/writingplan.html

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