PLANNING

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who are they? what can you do about it? when can you take action? where are they? why they buy from you? how to reach them effectively?

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Importance of a Business Plan

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he format of a business plan will vary from one to the next. By providing a preset format, we have simplified this process giving you an easy platform to build upon. We will give you the tools necessary to start your plan, which will allow you to design it particularly for your business needs. Just as a city grows so will your business, so it is imperative that your business plan stays up to date to overcome any unpredictable changes that may occur.

Creating a strong business plan is one of the most vital steps an entrepreneur can take when creating a business, no matter how big or small. Often times this crucial step is skipped simply due to uncertainty of the process. Think of a business plan as the written roadmap to your business. No matter the direction your business will take, your plan will offer assistance to guide you along the way. A strong business plan serves as a clear explanation of your business venture, economic viability and future prospects.

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Importance of a Business Plan

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How a Business Plan is Used

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As a clear, concise analysis of your business objective. To reveal oversight/weakensses within the planning process. A visual aid when presenting to important people such as potential bankers/investors/lenders.

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How a Business Plan is Used

Commonly people forget to utilize experts within their desired fields when creating their business plan. Getting the input from others who have previously walked in the shoes you wish to fill can be found quite beneficial.

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Things to Avoid

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Avoid long-term, future-projections. Since businesses will inevitably undergo unpredictable changes, it is best to set shortterm goals and adjust the plan as you advance.

Avoid optimism. If it can go wrong, plan that it will. It is rare that a business plan will have calculated a precise measurement of time and money that will be spent in the building process. It is best to over plan.

Avoid overlooking a game plan when disaster strikes. Clarify what move you make should your business be in risk. Avoid getting lost in creating the most unique business plan. The main objective is to simply put your business venture into a clear, concise, and easy to read format.

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Things to Avoid

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Formatting a Business Plan

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The business plan format is the way in which you represent all the critical factors pertaining to your business goals and ventures.
The following topics have been recommended for majority of business plans: Business Objective: The stated, measurable targets of how to achieve business aims. Know your personal strengths/weaknesses as well as opportunities/threats. Product/Service: Describe the business, product, or service. How does your product/service differ form those who are currently in the industry. Know what materials will be needed (both on a regular basis as well as start-up). Market: Focus on the intended demographic you wish to serve. Know your competitors strengths/ weaknesses. Also, know your competitive advantage and how your business is going to provide better service than the competitors in your industry. Profits/Loss: Make a spreadsheet showing your future projections on business profits/losses, as well as expenses. This also needs to include a start-up cost expense including all necessary materials/equipment, as well as emergency funding for unexpected situations. Always prepare for the worst.

As a business owner is essential that you understand and acknowledge your own personal strengths/weakness. If you lack the ability to perform a task it is of great importance that you recognize how you are going to compensate for this deficiency. Should you choose to add people to the process, it is key you add a profile for them in your business plan.

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Formatting a Business Plan

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6 Key Steps to Writing a Business Plan

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Writing a business plan is one of the most difficult tasks for a beginning business owner to try and do. However, this highly beneficial tool is going to serve a great purpose so, no matter the difficulty, it is imperative you do not skip this step. The following are six steps to help you along the way:
Write out a simple explanation of your business idea. 

Do your research to gain specific knowledge in key areas of your idea. Based on your research, refine your explanation of your business idea. Using the analysis of who, what, when, where, and why you can form more specific information of your business.

Use a format that will highlight key data in a clear and concise manner. Keep in mind your plan will be presented to important people. You want to make sure key details will be easy to read. Review and fill out the sample plans we provide and download the blank format to a MS Word document. Use this documents as your advance.

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6 Key Steps to Writing a Business Plan

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Key Elements to Include

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A Clear Business Concept:

Too often new businesses fail because they lack a clear direction. It would be highly beneficial to intern for someone within your desired industry to get a realistic perspective of the day-to-day activities.

Market Knowledge:

The best way to collect market data concerning your product/services is to experiment with actual potential clients. Based off reactions off prototype products/ services you can determine the based route to take within your desired market.

Industry Stability:

Focus on a business with great economics more so than an ultra unique business. In order for a good business to succeed, there has to be a need. Instead, try a unique selling point as opposed to an ultra unique business. An idea that is too far out of the box may not serve an economic purpose. Think of your own unique twist on businesses that are currently in good standing.

Management:

Think of skills and traits that you may lack and consider hiring people that can compliment your weaknesses with strengths. Acknowledging your weakness opens opportunity to fill the void with proper managing skills.

Financial Awareness:

Product Specialty:

If you try to be good at everything, you cant be great at anything. Focus on what you do well so your competition doesnt become limited to price. Understand that your plan is always under construction. Be open to making changes based on unexpected events that inevitably will arise. By preparing yourself for the worst, you can assure yourself of a possible solution.

Subject To Change:

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Key Elements to Include

Skills most often overlooked by new business owners are those relating to finances. Yet, money is the main purpose surrounding the ownership of a business. As a successful business owner, it is viable that you learn at least the basics in accounting, computer software and cash flow management.

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Development of a Business Plan

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Assemble the prototype for your product/service and test it out on a small group of potential clients to assist in approval of the final product/service. Finetune each element of your plan and trial run until all potential kinks have been B  e open to adaptability. Your first plan ironed out. is a rough draft that will need revision

over time. By committing yourself too soon, you may miss the chance for greater opportunity up the road.

R  ecognize where you stand within your industry based on your experience and acknowledge your place within it. You may be owner of a business, but you can still learn from those who have more experience within your specific industry. A  cknowledge potential threats to your business and incorporate solutions to their threat. Being optimistic in a business plan is not suggested. I  dentify essential elements contribute to your business success. Know what do you have to gain/loose. A  cquire funds that are ample to finance the trial period or possible next predicted venture, with room for the unexpected. S  ave the hiring of employers until the preliminary process has been concluded and a better understanding of how things will run has been established.

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Development of a Business Plan

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Top 10 Dos

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Top 10 Dos

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Top 10 Donts

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Top 10 Donts

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Creating a Business Plan

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Description
What is the name of your company? Legalities (do you need patents or Trademarks)?

List the owner (including all invested)

What are your hours of operation

Where is the prefered location of your business?

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Creating a Business Plan

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Products/Services
Description of Product/Services

What are your unique selling points?

Manufacturing of Product/Services

Estimated Start Date

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What benefits do your products or services offer?

What are your required Materials/Inventory?

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Products/Services Cont.
Who are your key suppliers? (name/address)

Backup Suppliers (name/address)

How do you intend to sell your Products/Services? (retail, wholesale, phone, mail orders, telemarketing, internet)

What is the prices of your Product/Services?

Do you require any licenses.

Do you have any restrictions/regulations?

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Creating a Business Plan

What, if any, are your terms of sale? (discounts, coupons)

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Market
What market trends can you find in the industry? (Include source of information)
Who is the target demographic? (Consumers: age, sex, income, profession, lifestyle, education, size of family; business: type, sales, size, number of employees, years in business, be as specific as possible)

Where is the location of your consumer?

What is the size of your consumer base? (One out of 10 or 1 out of 100)

Who are the largest and most profitable consumers?

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What competitive advantage do you have that your competitors do not?

What competitive advantage do you have that your competitors do not?

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Advertising/Promotion
Who will sell your product/services? (include people in sales team)

How will you advertise/promote your business? (include names and time frames)

What marketing material will you need to acquire (flyers, brochures, ads, catalogs, etc) who will design these materials?

What other extra benefits will you offer through your advertising? (Discounts/coupons)

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Creating a Business Plan

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Management
Identify persons in management/personnel positions

Attach resume per person (list attributes, education, & experience)

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Business Space
Describe the location of your business, building and parking,

Do you lease or own?

Are you accessible to major highways?

What is your location in comparison to wholesale consumers?

What are some strength and weakness of the location?

What is your ideal location? (get quotes)

Do you intend to have major machinery or equipment to be used in the business space?

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Creating a Business Plan

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Retail/Wholesale
Research and describe the market need in desired location of business.

What competitors or other business will impact your business?

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Community
How can your business benefit the community?

Are there ways to work collaboratively with your community or already established foundations?

How do you plan to create awareness in your community about your products or services?

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Important Documents to Include

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Important Documents for your Business Plan Sources and Uses of Funds Statement Listing of Items to be Purchased Cash Flow Statement Below is a list of typical documents needed in a loan proposal  Fiscal year-end financial statements including income statements and balance sheets for the last 3 years (if expanding or acquiring a business) and/or last 3 year tax return.  Interim financial statements, listing & aging of accounts receivable & notes payable.  Personal financial statement from all persons on the loan. Last 3 years income tax returns. Sources and Uses of Funds Statement.  Projected income statements, balance sheet, and monthly cash flow statement for 2 years. Statement of Collateral Offered. Deeds of all real estate pledged as collateral.  Sales contract on real estate to be purchased (contingent upon attaining the loan. Detailed preliminary construction contract or bid/ estimate. Copy of existing or proposed lease for building premises. Machinery and equipment quotes/ bids. Franchise agreement and FTC disclosure.  P ersonal one page resume of all principal owners and key employees Copies of business brochures (if any) Local map pinpointing business location

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Creating a Business Plan

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