Writing a Business Plan

Preparing To Write Your Business Plan

Your business plan will take time to prepare because in it, you are not only defining what your business is and does; you are providing financial information for a potential lender or buyer of your business. Adequate planning for research and documentation is necessary.

There are many types of software to help you in preparing to write your business plan. In addition, there are many helpful guides and resources on the internet that will teach you how to write a business plan.

Consult with Others While Writing a Business Plan

Often we forget that other people may not fully understand what they read. It is extremely helpful to consult with others who are knowledgeable about business, especially if you are writing a business plan for the first time.
You can also consult with people in your private circle.

Ask a friend or partner to read over your business plan as you complete phases of it. If those people have questions, make sure you address them in your plan. Nothing should be taken for granted---or assumed will be understood.

Prepare to Include Financial Information in your Business Plan

Your business planning will contain specific financial information, including personal financial records. It is critical that your financial records, in particular, are accurate in your business plan; using software such as Intuit’s Quckbooks make this process easier. Even if you have not yet started a business, you must be able to realistically evaluate what money is going into capital and the business’ expenses.

Prepare to Include your Business’ Market and Industry Information in your Business Plan

You also need to research your business’ market and industry. This includes evaluating similar types of businesses and showing how your business is better or different from your competitors’.

This information should include what similar types of businesses are in your area of operation. Using Google or other online search methods, document your findings using an editor such as Microsoft® Word®.

Prepare to Include Advertising and Marketing Information in your Business Plan

Your business plan will also contain marketing methods you are or will be using. Is the advertising for your business based on offline advertising, online marketing, or a combination of both? You need to investigate advertising options and provide this information in your business plan.

Prepare to Include Operational Information in your Business Plan

A schedule of operational activity and personnel must also be included in your business plan.

How many people contribute to the running of your business and what do they do?

Even if you are the sole owner of the business, a breakdown of activities needs to be included in your business plan.

Hierarchical charting, using software such as Microsoft® Visio®, is a valuable tool to show a breakdown of how your business operates.

Prepare to Outline your Business Plan

A simple outline for a business plan consists of addressing the above in a format that is easy to read and understand. Microsoft® Word® provides business plan formats and templates you can download to use as a guide.

Remember and Prepare for These Important Business Plan Elements:

1. An Executive Summary that is a short overview of what your business plan contains (you can write this last).

2. A General Company Description that explains what your business is about and what you do, along with a mission statement, goals and objectives, business philosophy, and industry description.

3. Products and Services. Describe your company’s products and/or services and why your business can compete in its market.

4. A Marketing Plan. How do you plan on effectively getting the word out about your business? How do you plan to advertise and to whom?

5. An Operational Plan. How is business conducted on a daily basis? How many people and types of equipment are used or needed for a smooth-flowing work environment?

6. Management and Organization. Does your business have employees with defined responsibilities and titles? You will want to specify who each person is and what he or she does. You may also include third-party designations as well, such as your accountant or business consultant.

7. Personal Financial Statement. What are your personal liabilities and how much and how often do you use your personal funds to invest into the business? Do you personally have credit worthiness?

8. Startup Expenses and Capitalization. Expect the unexpected here if you are trying to get a business loan. Include your startup expenses and how much capital you and any partners or stockholders have contributed to the business.

9. A Financial Plan that shows the profit and loss over a one and four-year period along with expected cash flow.

Links to Help You Prepare a Professional Small Business Plan:

Learn How to Write a Business Plan and Download Free Templates:
http://www.bplans.com/

Bookkeeping and Expense Tracking Software:
http://www.thesoftwarenetwork.com/Bookkeeping-Software/

Small Business Software:
http://www.business.com/directory/small_business/software/

Business Planning Templates from Microsoft®:
http://office.microsoft.com/en-us/templates/TC010175201033.aspx