How To Write A Business Plan And Make It Your Blueprint For Success

Why write a business plan? There are several
reasons why you might want to write a				3. Table of contents
business plan.
				I. The Business
1. It is a tool for obtaining financing.
				A. Description of business
2. It will help unite venture partners in a
common goal.				B. Marketing

3. It can serve as a feasibility study.				C. Competition

4. It will serve as a goal and blueprint for				D. Operating procedures
your new business.
				E. Personnel
Of all of the purposes listed, the last one
is the most important. According to the Small				F. Business insurance
Business Administration, 95% of all
businesses started, fail within the first 5				II. Financial Data
years. One of the main reasons for failure is
a lack of direction or goals. A business plan				A. Loan applications
will give you that direction or goal, if it
is used properly.				B. Capital equipment and supply list

The Foundation For Writing A Business Plan				C. Balance sheet

There are several things you need to consider				D. Breakeven analysis
before beginning to write:
				E. Pro-forma income projections (profit &
1. Consider whom you are writing the plan				loss statements) Three-year summary Detail by
for.				month, first year Detail by quarters, second
				and third years Assumptions upon which
2. Have a firm idea of what product or				projections were based
service you are offering.
				F. Pro-forma cash flow
3. Do market research to determine the demand
for your product or service. Learn who your				III. Supporting Documents
potential customers are.
				Tax returns of principals for last three
4. Decide how you are going to sell your				years
product or service to your potential
customers. It does not matter how good your				Personal financial statement (all banks have
product is unless you are able to sell it for				these forms)
a profit.
				For franchised businesses, a copy of
5. Determine where you are going to get the				franchise contract and all supporting
money necessary to start your business. You				documents provided by the franchiser
must have enough financial reserves to pay
the expenses until you pass the breakeven				Copy of proposed lease or purchase agreement
point and start making a profit.				for building space

Writing Your Business Plan				Copy of licenses and other legal documents

After you have finished your research and				Copy of resumes of all principals
background preparation, it is time to list
the reasons why your business will succeed.				Copies of letters of intent from suppliers,
You are essentially writing a report to				etc.
yourself. Your report must address all the
areas that are obstacles to business success.				Summary
Your business plan must be able to convince a
reasonable person that you can succeed. It is				The suggested research is the basis for
also your goals for success. Without a goal,				writing your business plan. The business plan
your aim is haphazard and prone to failure.				you are writing will be the blueprint for
				your new business. Consider what a house
Business Plan Outline				would be like if the builder did not use a
				blueprint. You want your business to be well
The following is an outline suggested by the				built like the house you live in. Just as a
US Small Business Administration:				carefully planned house will last many years
				into the future, you want no less for your
Elements of a Business Plan				business. If you do not take the time
				necessary to develop your business plan, then
1. Cover sheet				you still have a plan. It is a plan for
				failure.
2. Statement of purpose

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How To Write A Business Plan And Make It Your Blueprint For Success