| A business plan doesn’t have to include fancy | | | | 5. Start-up costs |
| charts or perfect sentences to be effective. It can be | | | | Show much it will take to get the business off the |
| as simple as something drawn up on the back of a | | | | ground and to reach breakeven. Don’t merely |
| cocktail napkin or as complex as a 100-page | | | | quote a big number, break it down into smaller |
| document. | | | | categories of expenses, and detail how you’ll come |
| In either case, the business plan should contain the | | | | up with that money. For a simple start-up cost |
| following nine basic components. | | | | worksheet, visit and download the free form that |
| 1. A brief description of the business, the industry, and | | | | takes you through typical start-up costs, item by item. |
| trends within the industry | | | | 6. Cash flow |
| You don’t have to conduct hundreds of hours of | | | | Include a simple spreadsheet that shows how money |
| research to come up this. Simply focus on what your | | | | will flow in and out of your business. Project out at |
| business does, what industry it operates in, and what | | | | least one to three years (any further, and the figures |
| the major trends are within that industry that could | | | | tend to be wild guesses). For an easy-to-use cash |
| positively or negatively impact your business. | | | | flow worksheet, visit and download the free form. |
| 2. A mission statement | | | | 7. A brief description of what makes your product or |
| Short and sweet, this should include something about | | | | service unique |
| your top products or services, the people or | | | | Describe what makes your business stand out in the |
| businesses you’re targeting, and the primary goals | | | | marketplace. Demonstrate what you offer that |
| and values of your business. Here’s an example | | | | differentiates your product or service from the |
| for an upscale hair salon: At Hair Affair, we offer | | | | competition. |
| beautiful hair care and styles for those who work or | | | | 8. An analysis of competitors |
| live downtown. When creating a new look or | | | | Include a short blurb on your top direct competitors, |
| enhancing a familiar one, we are committed to building | | | | outline their strengths and weaknesses and show how |
| clients’ self-confidence and ensuring their | | | | you stack up against them. |
| satisfaction. | | | | 9. Marketing plan and strategy |
| 3. A bio of the owners, advisors, managers, and/or | | | | Sketch out the price points you’ve chosen, the |
| investors in the company | | | | types of marketing you’ll use to connect with |
| Don’t go crazy here. Just include the names of the | | | | potential customers and clients, and your overall |
| key players and a sentence or two about their skills | | | | strategy for bringing in and retaining business. Be as |
| and management experience. Later on, if need be, you | | | | specific as you can here. |
| can attach résumés to the business plan. | | | | That’s it! Those are the nine points you need to |
| 4. A brief description of the day-to-day operations of | | | | cover to craft a dynamite business plan. |
| the company | | | | Whether you’re starting a business, purchasing a |
| Describe how work will flow in and out of your | | | | business, or expanding a business, the moment you |
| business. If applicable, describe the key vendors | | | | start to plan, you begin to put structure and form to |
| suppliers you’ll rely on, the products and supplies | | | | your ideas and dreams. Don’t wait to write a plan |
| you’ll purchase from them, and the payment terms | | | | until a lender, investor or key partner asks for one. Do |
| you’ll set up with them and your customers or | | | | it today…do it for yourself! |
| clients. | | | | |