Components of a Business Plan - Part V

Don't fall in love with the idea of your business. Youbusiness you are in. It should also list your services and
may have dreamed about the idea of this business forproducts. This where you will describe your market,
years and are just acting on it. You must still treat it ascompetencies, and distinctions. Lastly, it will define your
a business and not let the thought of if prevent youkeys your success business.
from viewing your business realistically! You must thinkOwnership and Management
strategically and be objective about your chance ofThis section will describe your personal qualifications
success.for this type of business. It will list your experiences in
Your business plan should enable you to put youryour business field and what strengths plan to bring to
ideas into a workable plan or feasible blueprint. It willyour business. This is where you will include your
manage all of your business elements and allow youresume and reviews that highlight your strengths and
to develop a game plan for where your business isexperience.
headed. As you develop your business plan, youProducts and Services
should know what it contains and not just fill in theThis section will list the products and services you plan
spaces of a blank business plan template.to sell. It should be description since they will be the key
Components of A Business Planto your success.
Here are the simple components of a business planFinancial Plan
that you can use as a guide:This section will track the expected cash flow in and
* Executive Summaryout of your business. There should be month by month
* Mission Statementand annual comparisons. Use this plan as your blueprint
* Company Descriptionmonthly while you are conducting business. You can
* Ownershipcompare where you budget funds and where the
* Operationsmoney was actually spent.
* Financial PlanThis section should contain the following:
* Marketing Plan or Sales Plan* Balance Sheet
Executive Summary* Profit and Loss Statement
Your executive summary should emphasis the high* Statement of Cash Flow
points of your business. It will state the purpose and* Sources of Funds
marketing potential of your business. It should also* Uses of Funds
contain the milestones, products and services, and* Vendors and/or Suppliers
financial results of our business. Focus on what makesThe key to successful cash management is how you
your business unique and draw attention to the bestmonitor the flow of your cash flow. You want to
parts of your business. In general, you will write thisremember the basics: Slow cash flow going out while
part last as you is developing your plan.speed up the cash flow coming in. Slowing the flow of
Mission Statementcash flow out can be done by developing terms with
Your mission statement should clearly state youryour vendors and suppliers. This allows you to
company's long term vision. It will illustrate how you plantemporarily delay payment while you are actively bring
to grow and develop your company in the years toin cash flow from your business sales.
come.The last section (part six) of this series will finish the
Company Descriptionfinancial plan section and go into the marketing plan.
Your company description will describe type of