| First off, a lot of people wonder why they even need | | | | place? |
| a business plan. It is understood in the business | | | | - Does the business have adequate cash flow? |
| community that it is a requirement for anyone seeking | | | | - What are the plans for future growth? |
| financing, wishing to attract investors or to pitch an | | | | Writing a business plan can be a huge undertaking. |
| idea to a partner or venture capitalist. As far as | | | | However, if the owner focuses on one section at a |
| everyone else is concerned, it is more than a | | | | time and keeps goals and ideas realistic, a great plan |
| document that conveys the business idea; it helps | | | | can be created. Most business owners need help with |
| shape the viability of a business. Future business | | | | the process and look to consultants and other outside |
| owners need to understand, especially in rough | | | | resources to help them put it all together. An ideal plan |
| economic times, that a business plan (or lack thereof) | | | | will be 25 to 35 pages and include attainable financial |
| can determine success or failure. | | | | projections. Focusing on objectives, realistic and |
| According to the Small Business Administration (SBA), | | | | attainable goals and completing a SWOT (strengths, |
| only 50% of businesses actually succeed during their | | | | weaknesses, opportunities & threats) analysis will keep |
| first five years. Additionally, approximately 75% of | | | | the document from becoming "marketing fluff". |
| business failures are due to financial reasons. A | | | | Once a business plan is completed, the owner can use |
| business plan should not only tell a story about the | | | | this plan as a guide to success. As the business |
| business and how it will attract customers, generate | | | | adapts to the marketplace and/or to achieve |
| income, achieve profitability, hire employees and gain | | | | customer satisfaction, the owner can continue to |
| market share, it also needs to include projected | | | | modify the plan. Additionally, the new owner can track |
| financial statements for a five year period. It is | | | | the financial results to compare actual financial data to |
| important for future business owners to understand | | | | the projected financial statements. Once again, the |
| the financial commitment needed to sustain their | | | | owner can make changes to these projections to |
| business and to be able to stay afloat during | | | | meet the business needs. Without a business plan in |
| seasonality lows or hard times. | | | | place, the business owner and management would be |
| Now with all that said, the hard part is actually putting all | | | | lost, similar to that of a ship that is off course with no |
| of these ideas and plans on paper. To start, the | | | | map or compass. You can just imagine how that |
| business owner should outline realistic goals and | | | | would end, right? |
| answer some tough questions. | | | | So, instead of dreading the work that is involved in |
| - What does the owner and management of the | | | | putting together a business plan, just jump right in and |
| business plan to achieve (other than profitability)? | | | | get those ideas down. Don't be afraid to ask for help |
| - What is the target market and how will this business | | | | and understand that "Rome was not built in a day". |
| differentiate itself from the competition? | | | | The best time to start planning your business idea is |
| - How will the business react to changes in the market | | | | now! |