Now that you have identified the type of business opportunity you want to pursue, it’s time to prepare a business plan. While you have identified the type of business you want to start, there are still questions that need to be answered.

Your probability of being successful when you start a new business is directly related to the degree that your business plan is accurate, complete and reflects certain realities. Therefore, preparing a useful business plan takes considerable time and effort. Your plan needs to be deliberate and in writing. Most people, who say they have businesses, have nothing more than a loose compilation of ideas.

Anyone who tries to build anything without a blueprint is courting disaster. A good business plan will (1) help you secure the financing you need, (2) help keep you and your employees focused and (3) reflect your ability to manage effectively.

Most business plans have three basic components: (1) a general overview of the business, (2) a discussion of how it will create and maintain customers and (3) a set of financial projections. The following business plan topics identify most of the items that should be addressed in a start up:

• Executive Summary
• Table of Contents
• Overview of Business Concept
  • Give a detailed description and purpose of the business and its goals
  • Describe the advantages you and your business have over your competitors
  • List the skills and experience you bring to the business
  • Identify the market opportunity
  • Define the growth and financial objective for the business
  • Discuss the legal form of the organization and ownership
  • Profile of the management team and organization chart
  • Provide a description of the market(s) to be served
  • Identify the basis for financing the business
  • Outline the timetable for establishing the business
  • Provide the exit strategy
• The Marketing Plan of the Business Plan
  • Overall description of the industry, it’s trends, history, influences
  • Analysis of immediate and potential competitors
  • Profile of the target market(s) and geographic area to be served
  • Presentation of the marketing mix for creating a competitive advantage
  • Product-service strategy
  • Price strategy
  • Promotional strategy
  • Physical distribution and location strategy
  • Projected sales and market share
  • Identification of any patents, licenses, copyrights, franchise rights, exclusive agreements, etc.
• The Financial Plan
  • Projected initial capital requirement
  • Projected opening-day balance sheet
  • Projected first-year income statement
  • Projected first year-end balance sheet
  • Projected income statement for years 2 through 5
  • Key operating ratios
  • Description of the sources of financing
  • Projected return for the owners and investors
• Operations
  • Explain how the business will be managed on a day-to-day basis
  • Discuss hiring and personnel procedures
  • Discuss insurance, lease or rental agreements, and pertinent issues
  • Account for essential equipment to produce products or services
  • Account for production and delivery of products and services
  • Supplemental factors
  • Operational issues
  • Identification of risks and insurance coverage
  • Identification of legal factors, including licenses, taxes, zoning, and other reporting requirements

Once you have completed your business plan, review it with a friend, business associate or a Service Corps of Retired Executives (SCORE) or Small Business Development Center (SBDC) counselor. When you feel comfortable with the content and structure make an appointment to review and discuss it with a financial consultant, your banker or a professional. The business plan is a flexible document that should change as your business grows.

Additional details are provided in our Be Your Own Boss business development package. click here to order your copy today.