| Why write a business plan? There are several | | | | 1. Cover sheet |
| reasons why you might want to write a business plan. | | | | 2. Statement of purpose |
| 1. It is a tool for obtaining financing. | | | | 3. Table of contents |
| 2. It will help unite venture partners in a common goal. | | | | I. The Business |
| 3. It can serve as a feasibility study. | | | | A. Description of business |
| 4. It will serve as a goal and blueprint for your new | | | | B. Marketing |
| business. | | | | C. Competition |
| Of all of the purposes listed, the last one is the most | | | | D. Operating procedures |
| important. According to the Small Business | | | | E. Personnel |
| Administration, 95% of all businesses started, fail within | | | | F. Business insurance |
| the first 5 years. One of the main reasons for failure is | | | | II. Financial Data |
| a lack of direction or goals. A business plan will give | | | | A. Loan applications |
| you that direction or goal, if it is used properly. | | | | B. Capital equipment and supply list |
| The Foundation For Writing A Business Plan | | | | C. Balance sheet |
| There are several things you need to consider before | | | | D. Breakeven analysis |
| beginning to write: | | | | E. Pro-forma income projections (profit & loss |
| 1. Consider whom you are writing the plan for. | | | | statements) |
| 2. Have a firm idea of what product or service you | | | | Three-year summary |
| are offering. | | | | Detail by month, first year |
| 3. Do market research to determine the demand for | | | | Detail by quarters, second and third years |
| your product or service. Learn who your potential | | | | Assumptions upon which projections were based |
| customers are. | | | | F. Pro-forma cash flow |
| 4. Decide how you are going to sell your product or | | | | III. Supporting Documents |
| service to your potential customers. It does not matter | | | | Tax returns of principals for last three years Personal |
| how good your product is unless you are able to sell it | | | | financialstatement (all banks have these forms) |
| for a profit. | | | | For franchised businesses, a copy of franchise |
| 5. Determine where you are going to get the money | | | | contract and allsupporting documents provided by the |
| necessary to start your business. You must have | | | | franchiser |
| enough financial reserves to pay the expenses until | | | | Copy of proposed lease or purchase agreement for |
| you pass the breakeven point and start making a | | | | building space |
| profit. | | | | Copy of licenses and other legal documents |
| Writing Your Business Plan | | | | Copy of resumes of all principals |
| After you have finished your research and | | | | Copies of letters of intent from suppliers, etc. |
| background preparation, it is time to list the reasons | | | | Summary |
| why your business will succeed. You are essentially | | | | The suggested research is the basis for writing your |
| writing a report to yourself. Your report must address | | | | business plan. The business plan you are writing will be |
| all the areas that are obstacles to business success. | | | | the blueprint for your new business. Consider what a |
| Your business plan must be able to convince a | | | | house would be like if the builder did not use a blueprint. |
| reasonable person that you can succeed. It is also | | | | You want your business to be well built like the house |
| your goals for success. Without a goal, your aim is | | | | you live in. Just as a carefully planned house will last |
| haphazard and prone to failure. | | | | many years into the future, you want no less for your |
| Business Plan Outline | | | | business. If you do not take the time necessary to |
| The following is an outline suggested by the US Small | | | | develop your business plan, then you still have a plan. It |
| Business Administration: | | | | is a plan for failure. |
| Elements of a Business Plan | | | | |