Business Plan

Your business plan will be the backbone of your business. While it’s a required part of many loan applications and other funding acquisition efforts, it can also be invaluable to the inner workings of your business, keeping you focused and organized.

It’s not just a document, it’s a “living” set of ideas that will grow as your business does. As your business grows, you may need to change some of the specifics in your business plan. But the overall goals of the document will serve to keep your growing staff working together to accomplish your original vision. And during your day-to-day operations, it gives you an overall view to see how you’re doing compared to your expectations.

Creating a business plan can be a daunting task. Focus on one section at a time so you can put your full attention to each section without getting overwhelmed at the large scope of the document.

Here is a business plan outline to start with:

Overview

Describe ownership and how the business is set up from a legal standpoint.
List and describe the skills and experience that qualify you for your business.
List your competitors and describe the advantages you have in competition.

Marketing

Describe the products or services you offer.
Identify the customer demand for your product or service. Include consumer benefits.
Detail your target market, the number of potential buyers in that market and where they are located.
Describe how your product or service will be marketed.
Describe your pricing.

Financial Management

List the amount and sources of your initial equity capital.
Show your monthly operating budget for the first year. Include cash flow and expected return on investment.
Show projected income statements and balance sheets for two years.
Estimate your breakeven point.
Detail your personal balance sheet and how you expect to be compensated personally.
Explain your accounting methods and who will perform them.
Show your preparedness for potential problems that may arise.

Operations

Detail the day-to-day management of the company.
Explain employee hiring and other personnel procedures.
List and explain insurance, lease or rent agreements.
List all the equipment that you will need to produce your product or perform your service. Include where you will obtain that equipment.
List all production, manufacturing, or performance steps, including delivery, of your product or service.

Conclusions

Write a summary of your business goals and objectives and a statement of how committed you are to success.