Creating your own business planBy
plan defines your business strategy. It is an
important document because it is like a map,
showing the path your business will take in the
future. It needs to tell exactly what type of
business you have and how you plan to run it.
All business plans are unique to a particular
type of business, but they all must contain
certain consistent objectives. Without a good
business as a guide to future success, your
business will go by the wayside quicker than you
need a business plan
plan serves two purposes. (1) It is your guide
to running your business and (2) It is extremely
important and required should you try to get
addition funding for your business. It provides
a clear picture of which direction your business
is headed to both you and potential lenders and
offers a strategy for marketing your business.
In addition your business clearly defines:
1. Established goals and strategy to achieve
2. Any obstacles and solutions for overcoming
3. Both the legal and organizational structure
of the business.
4. Financial need and offers future financial
Should Your Business Plan Be?
So how long
does any good business plan need to be? Well it
all depends on how you will use it. For
instance, if you are looking for funding, you
will need to create a more extensive business
plan that you would if it were created for your
personal use as a business map. Lenders are
sticklers for information. They will want a
great deal of detail in the business plan before
they agree to give you money. It depends
entirely on its intended use.
Uniqueness of Your Business Plan
business plan is unique to your business alone.
No two-business plans are the same, they vary
based on the type of business. The main focus of
any business plan is to make sure that it
presents an accurate picture of your business,
now and in the future. Search the Internet for
sites that offer business plan templates to save
a lot of time and effort. Be sure to find a
template that most closely resembles your type
of business then modify it to your needs.
Your Business Plan
areas are always covered in any good business
plan. They are the business, the Market and the
When evaluating your business, you need to
address and document in your business plan
various aspects such as the legal structure i.e.
sole proprietorship, partnership, or
corporation. You need to make sure that you have
chosen a good name for your business and list
all the people who will be staffing it.
Statements of unique positioning for your
business, existing market conditions and what
steps you intend to take to grow your business
will be included as well. Equally and probably
the most important element will be defining your
product or service and how you manage to produce
it and deliver it.
As with anything else, you have to know your
audience. In this case your who your customers
will be and what service or need are your
fulfilling for them. You need to lay out in
detail just how you intend to motivate your
customers to use your service or buy your
product. Also important is defining what medium
you intend to use to attract customers. Knowing
your competition is extremely important in any
circumstance, but it too is an important element
that needs to be included in your business plan.
You unique position strategy to win market share
and what percentage of market share you intent
to target should be discussed in detail. Include
any backup documents to support these claims.
Finally it comes down to money. A detailed
financial plan both currently and for future
financial projections must be included in your
business plan. The cost of starting a business
and how the money will be used are of key
interest to lenders. Lenders will also be
curious to see a timetable on your businesses
projected profitability plan, which should
include projections for at least 5 years out.
following elements are considered key to any
business plan and must be included. Expand on
certain details wherever possible to provide as
clear a picture as possible.
Summarize important points in this section. Keep
it to 3 pages or less. This part of the business
plan will be of particular interest to investors
and lenders. It will help them decide if your
business is a worthwhile investment. Include
your business Mission statement defining exactly
what type of business it is, what activities it
performs and why it is unique to compared to
your competitors. List all business goals and
objectives of your business. Quantify them and
include a timeline for achieving them. Make sure
they are realistic and attainable. If your cant
measure your plan your business will certainly
be destined to fail.
Summarizes the details of your business
including how you will handle customers,
business goals, the structure of your business,
start up costs and the location of your
Products and Services
This section discusses what you have to offer by
way of products or services. It will focus on
why your offerings are of interest to customers
and what benefits they will gain. You will also
show any competition to your business here and
how you rank compared to them.
Market Analysis An
in-depth analysis of current market conditions
for your business to compete in is detailed here
and the strength of your business in it. It
describes the 5-Ws, who, what where, when and
why of your market. and your strengths therein.
and Sales Strategies Your detailed plan of
how you intend to compete in a competitive
market and win market share.
forecasts and marketing - Defines how you
intend to attract customers.
Operations and Management Listing of all
management personnel and operational structure
of your business. List all strengths,
weaknesses, opportunities, and potential threats
to your business through in-depth analysis of
your business operations.
Plan - Provide a detailed analysis of your
businesses cash flow, P & L statement, break
even analysis and all necessary financial
indicators. This offers a complete look at the
financial health of the business. All incoming
and outgoing cash flow should be included. It
gives a good assessment of how much money is
available to meet you obligations.
easy steps discussed here, and you will be well
on your way to creating a solid, sound business