Writing Your Business Plan

A business plan is basic to your entrepreneurial success. Therefore, the importance of a comprehensive, thoughtful business plan cannot be overemphasized. 

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.

It precisely defines your business, identifies your goals, and serves as your firm's resume. The basic components include a current and pro forma balance sheet, an income statement, and a cash flow analysis.

It helps you allocate resources properly, handle unforeseen complications, and make good business decisions. Because it provides specific and organized information about your company and how you will repay borrowed money, a good plan is a crucial part of any loan application. Additionally, it informs sales personnel, suppliers, and others about your operations and goals.

Despite the critical importance of having a plan, many entrepreneurs drag their feet when it comes to preparing a written document. They argue that their marketplace changes too fast for a written plan to be useful or that they just don't have enough time. But just as a builder won't begin construction without a blueprint, eager business owners shouldn't rush into new ventures without long range planning.

Ninety percent of new businesses fail. Most do so because they lack specific direction. In one survey, out of 29,000 businesses started, 26,000 of them failed. Of the failures: 67 percent had never written a business plan; 57 percent had no outside guidance; and 71 percent hadn’t taken any business courses.

Use your written business plan as a tool for refining your business concept and presenting it to the people who can back you.  View sample business plans for a template for your plan.

Begin your planning by answering these core questions:

What service or product does your business provide, and what needs does it fill?

Who are the potential customers for your product or service, and why will they purchase it from you?

How will you reach your potential customers?

Where will you get the financial resources to start your business?

A formal Business Development Plan includes

 Business Plan Forms are available.

When the process is completed, your answers will have created a focused, well-researched business plan that serves as a blueprint for business operations, management and capitalization. 

Once completed, review your plan with your business associates.

Once the content and structure are decided on you can begin to implement your plan. Read "Starting A Business".