7 Easy Steps To Writing A Business Plan

 

Creating a business plan will help you achieve your entrepreneurial goals. A clear and compelling business plan provides you  with a road map to business success.  There are seven main steps to writing your business plan, but there are many smaller steps in between that should not be overlooked.

1. Business Name. What is the the legal name of your business.

2. Owner(s) Names. Who are the principle owners and what percentage do they own.

3. Information on the Business

  • You want to specify the type of business that you have as well as what product or service that you are selling.
    • Industry – Clothing, Food Service, Auto, etc…
    • Business Type – Wholesale, Retail, B2B, B2C
    • What is your USP (Unique Selling Position)
    • Talk about your products and/or services.
    • Give a high level view of who your customers are…you will add more information in your Market Analysis
    • How will you sell your good/services to your customer… how (website, store front, kiosk ,sales reps,  catalogs, phone orders, etc.).
    • What is the quality of your product (High End, Affordable, Low Quality)
    • List your average price point.

4. Market Analysis

  • Customers (Market)
  • Environment
  • Competition
  • Competitive Advantages and Disadvantages
  • Projections

5. Market Strategy

  • Sales Strategy
  • Promotion Strategy
  • Internet Marketing Strategy

6. Management

  • Why have you chosen this type of business?
  • List your key management personnel, include the following: resumes, personal financial statements, tax returns for the last three years, and personal family budget.
  • Describe prior experience that qualifies management to run this type of business.
  • State why you feel you can run this business.  State how much time management will devote to running this business.  Discuss local contacts who may assist you in your business.

7. Financial

  • a. Sources and Uses
    • Describe the project to be financed.
    • State where the money to pay for the project will come from (sources) and show in detail how it will be used (uses).  The most common uses are equipment, leasehold improvements, inventory and working capital.
  • b. Statements – Historical and Projected
    • If business is an existing one, include business tax returns and financial statements for the last 3 years.
    • Financial statements should include:
      • Balance Sheet
      • Income Statement
      • Accounts Receivable and Aging
      • Accounts payable and Aging
      • Debt Schedule
      • Reconciliation of Net Worth
    • For both existing and new business, project the following financial statements for the next three years (monthly for first year, annual for second and third):
      • Operating (or Income) Statement with explanation (sales, expenses, profit)
      • Balance Sheet
      • Reconciliation of Net Worth
      • Cash Flow with explanation
      • Break even Analysis
By | 2017-05-19T00:09:55+00:00 July 7th, 2015|Business Planning, Start Up|0 Comments

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