• A Business Plan is your road map to success. It is a formal document explaining in some detail your plans to develop a financially successful business. A business plan precisely defines your business, identifies your goals, and serves as your firm's resume.

• Preparing a business plan forces you to think through every aspect of your business. If you need outside capital, the business plan will be one of the first things the lender or investor wants to see.
• A business plan serves as an assessment tool for the owner. As you work your way through the points of the plan, you will have to reaffirm the viability of your ideas. As you grow your business, a plan will help you keep track of the details and make sure the business is progressing as you intended.

Plan Your Work!

• The importance of a comprehensive, thoughtful business plan cannot be overemphasized. The business plan is a necessity! Much hinges on it - outside funding, credit from suppliers, management of your operation and finances, promotion and marketing of your business, and achievement of your goals and objectives.
• What goes into a business plan? Before you begin your plan, consider these items:
  1. Description of the business - What service or product does your business provide and what needs does it fill?
  2. Marketing - Who are the potential customers for your product or service and why will they purchase from you? How will you reach your potential customers?
  3. Finance - Where will you get the financial resources to start your business?
  4. Management - Your management plan sets the foundation for and facilitates the success of your business.
• The process of developing a business plan will help you think through some important issues that you may not have considered.

Steps to consider when preparing your business plan:

Introduction
Marketing
Financial Management
Operations
Concluding Statement

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 products/service.
• Identify your market, its size and locations.
• Explain how your products/service will be advertised and marketed.
• Explain the pricing strategy.

Financial Management

• Explain your source and the amount of initial equity capital.
• 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, balance sheets for a two-year period.
• Discuss your break-even 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, 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.
• Express your commitment to the success of your business.