The business plan is the most important aspect your business. Whether your business is just starting or is a veteran in the industry, the business plan is what will keep your business running smoothly. Your business plan clearly communicates your business's intentions to lenders and financing companies. It tells who you are, what you do and what you will become. It maps your business's journey and intent. Therefore, your business plan should be well thought out and detailed.
Brainstorm
Before you can write a business plan, you must first analyze the aspects of your business. Decide what type of business you want, and what your business's specialty will be. Immerse yourself in your industry and get a clear understanding of what will make your company special and how you will stand out in the crowd. Decide on the type of business entity you will become (proprietor, partnership, corporation, etc.) and what type of business it will be (retail, service, wholesale, etc.). Take the time to consider these aspects and how they will affect your company and its business processes.
Team Players
Once you have determined your basic business structure, decide on your staff. Outline your business structure and determine how many staff members your business will require to run smoothly. Determine how many managers you will need to oversee the activities and what qualifications are important for these employees. Outline the job descriptions for each employee. Determine salary, benefits and required work hours for each employee.
Location and Operation
Determine your business's operational and geographical aspects. These aspects of the business are greatly affected by your company's industry and purpose. If you plan on targeting only Internet customers, then your company's location is not as important as a business whose focus is on-location retail. The details of your operation should also be considered when determining your location. If you are a business that will have many employees with few walk-in clients, you will need a larger location with ample employee parking and a smaller waiting room or lobby. If you will produce products with machinery, you will need to consider the size of the equipment as well. Make every effort to determine each specific before finalizing any location contracts.
Marketing
Powerful marketing can propel a company toward excellence while poor marketing can consign a company to failure. Marketing is the portion of the business plan that shows how you will attract your customer base and keep them coming back. While developing your marketing piece, consider who your customers are, what type of things they are seeking and why they will do business with your company. Analyze this customer base in detail.
Analyze your competition. What is their specialty? How do they maintain their customer base? What will it take to compete with their businesses? Successful companies understand not only their own strengths but their weaknesses. Analyzing your competition will allow you to understand your weak points, as well as those of your competition. When the information is used effectively, it will help you to shine.
Balance Sheet and Income Statement
Balance sheet and income statements within the business plan provide a snapshot of your business's finances. This information provides lenders with an overview of your business's past income, current income and future projections. This information reviews the inventory, overhead and expenses in an orderly and easily viewed manner. This information will provide your lender with a clear view on how their funds will help to improve the business and how you will be able to repay a loan. It is important that these statements be clear and accurate. If you are uncertain as to complete these statements, you should speak with an accountant or financial professional for assistance.
Executive Summary
Although the executive summary appears as the first section in the business plan, it should be the last section that you complete. The executive summary provides a short summary of the various aspects of the business. It should be no longer than two pages and should inform the reader as to what they should expect in the overall business plan. It should include specific highlights of your business in which you would like to bring immediate attention. Additionally, it should include the name of your business, any partners, your competition and your marketing strategy. If you are seeking a loan, the summary should include the amount of funding you seek, and how and when you intend to repay the loan. If you have successfully analyzed and researched your plan, the executive summary will be the least difficult part of the business plan to write.
