Whats your plan?

In today's economy, many people are choosing to start their own business. Some people may see this as a bad time to start a business but it really depends on if you are a half-empty or half-full glass kind of person. With jobs being cut, people have found themselves starting businesses from either desperation of a dream that they feel they can finally make into a reality.

When starting your business, although it will not ever go perfectly, do as much of your homework as you can and learn as much as you can to become the success that you know you can be.

One of the important elements you will find as you go along is having a business plan. Some people do this before they start their business and some do it after they have already started. Either way, you will find that you will need one as you go along. There are many different reasons for having a business plan: finances (loans, grants, investors), goal setting (this makes your goals and your mission much clearer to yourself and other), purpose (it makes it easier for you to explain and identify your purpose as a business), etc.

WRITING A BUSINESS PLAN
(taken from the website of the Small Business Administration)
The body can be divided into four distinct sections.
1) Description of the business
2) Marketing
3) Finances
4) Management

Agenda should include an executive summary, supporting documents, and financial projections. Although there is no single formula for developing a business plan, some elements are common to all business plans. They are summarized in the following outline:

Elements of a Business Plan
1. Cover sheet
2. Statement of purpose
3. Table of contents

 

I. The Business
A. Description of business
B. Marketing
C. Competition
D. Operating procedures
E. Personnel
F. Business insurance

 

II. Financial Data
A. Loan applications
B. Capital equipment and supply list
C. Balance sheet
D. Breakeven analysis
E. Pro-forma income projections (profit & loss statements)
F. Three-year summary
G. Detail by month, first year
H. Detail by quarters, second and third years
I. Assumptions upon which projections were based
J. Pro-forma cash flow

 

III. Supporting Documents
A. Tax returns of principals for last three years Personal financial
statement (all banks have these forms)
B. For franchised businesses, a copy of franchise contract and all
supporting documents provided by the franchisor
C. Copy of proposed lease or purchase agreement for building space
D. Copy of licenses and other legal documents
E. Copy of resumes of all principals
F. Copies of letters of intent from suppliers, etc

The Small Business Administration has a lot of good information on starting a business and tips to help your business be successful. For more information you can visit their website at:
www.sba.gov