Guidelines For Developing a Business Plan

People who are thinking of starting a business should5. A business plan does not need to be lengthy in
also think about developing a business plan. It is like aorder to have depth, although it has to discuss what
mental exercise but one which is based in reality. It canthe business is about and how it will make money.
help in make it clear to you if the business you areWhen writing down a plan for business, first look for
planning would be successful or not, or if the productan outline or template which allows you to make a plan
or service you are thinking of offering would have highin the format preferred by many investors. Writing a
demand in the market.plan is not an intuitive task so an outline or a template
A business plan basically should include two mainis a nice place to get started. Many beginning business
points:people use specialized business plan software which
• A brief introduction of yourself (including yourhas sample business plans in various industries. Some
personal and professional background) and your ideaof which may be similar to your proposed business.
(including its origins or how it came about); andOther entrepreneurs even hire people to write
• An overview describing the proposed businessbusiness plans for them.
including the location and the costs that would beThis is understandable because business plans are
involved in the setup.difficult to write down and most potential lenders want
Think about these when developing a plan for bus:a particular structure for such documents. However,
1. Write down your proposal, what you want to do, andhiring other people to write a business plan ignores the
the reasons behind it. This would help in clarifying yourfact that your business idea is different from the
ideas and in outlining the rest of the plan.others, and you would have a different company
2. Write down your plans for the proposed businessdescription, products, strategy, and or even financial
and what new idea you can offer to people. Theseinformation.
can form as the basis for your business mainIf you are really planning to start a business, get advice
structure.from organizations meant to assist entrepreneur, such
3. Do some basic market research (in real settings andas a local Small Business Development Center
on the Internet) and use the information you gathered(SBDC).
in your plan. Even for beginning business owners whoBeginning business owners should keep in mind that
are not looking for additional funding, market researchtheir business plan can be altered if necessary. This
can help in knowing what to sell and at what prices todocument should reflect developments in a business,
offer them.and with a business that is just starting, a business plan
4. Even if you are not seeking additional financing,should not be seen as something set in stone. When
include your financial information like profit and lossdeveloping a business plan, the document should be
forecasts, financial forecasts, or cash flow projections,seen more as a guide than a set rule.
in the business.