Write a Business Plan

Many new business owners wonder if they really need a business plan. If your staff consists of one person – you – and you aren’t in need of immediate financing, taking this step may seem formal and time consuming.

What exactly is a business plan? Basically it’s a document that describes what you plan to do and how you plan to do it. Realistically it’s impossible to reach goals if you don’t know what they are. Putting it down on paper is the first step on a path to success.

A business plan is a formal statement of a set of business goals, the reasons why you believe you can attain them and the steps you need to take to reach your goals. The amount of detail necessary depends on who will be reading the plan. If you’re writing it just to give yourself a sense of focus, a single page is probably sufficient. If you’re looking for a significant amount of financial backing, the plan will need to be much more detailed and can reach a hundred pages or more, since a lot of explaining and convincing may be necessary. A more detailed plan will not only convey your business goals and how you intend to reach them, but also the problems that may confront your business and the ways you plan to solve them. It may need to explore the amount of capital needed to fund your business and keep it going until it breaks even.

Most business plans contain some or all of the following parts:

• Business concept: discusses your business and how you plan to make it a success

• Business trends: This section identifies what industry your business is in and the trends of the industry

• Mission statement: a succinct statement defining the goals and values of your business

• A bio of the owners or managers

• Marketing plan and strategy: Describe and analyze potential customers and how you plan to attract and retain business

• Financial section: contains income statement, cash flow statement, financial analysis, etc. This section may require the assistance of an accountant.

• A description of what makes your business unique and how you plan to beat the competition

Before you have actually put together a business plan, it seems intimidating, but the process of creating a plan is more important than the document itself. It will help you clearly define your business and where you hope to go with it, as well as exactly what steps it will take to get there.

The first one is the hardest. After that, your business plan can be updated annually, quarterly or monthly. It can also be updated when you need additional financing or when there has been significant market changes affecting the industry you’re in.

Don’t just stop at writing a business plan. You need to follow it! Success comes to those who make a plan to attain it.

If you need assistance writing a business plan, visit http://www.sba.gov/smallbusinessplanner/index.html

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