How to : Create a Business Plan

Why do you need a business plan?

•  A business plan helps you clarify the exact nature of your business                                                   and how you plan to develop it . It is a road map from where you are                                            now to where you want to be in business. It helps you mark out your                                          objectives and stay on course as you move toward them.

•  A business plan is a tool to attract investors. Your well thought                                                               out business plan can stimulate potential investors to provide you with                                                                    the seed money you may need to launch your business.

What is a Business Plan?

While Business plans vary in format , the four parts below I have found to be basic to all.

1. Summary : The first part of a business plan summarizes the three parts that are to follow :
    The business  (operations) , The Marketing  Plan  , and relevant Financial Data.

2.  The Business : This section describes your business  operations, including : The goods and 

     services you will provide, the legal entity ( Partnership, coropration , etc) , the management 

     team, including resumes of the key players, your staffing plan , your professional support team, 

     the physical facilities of your business , the process and procedures by which your business will 

     run, and an over all scheme of your goals and objectives.

       

           3.  The Market : This section contains your marketing plan, the most essential part of your     

                business plan. Your marketing plan will include a description of the market ( what’s out there )  

                and your place in it, observable trends in the market, forecasts for the future , and the specific 

                individual ,   groups , or organizations that you intend to sell to your target markets.

                Additionally , you will describe pricing policies , sales terms, customer service policies, methods of  

                sales and distribution, advertising and promotional strategies, and all other relevant marketing data.

4.  Finances : This section includes a budget for implementing the plans you have made in your  

     business and marketing sections. It details where you expect to get your dinero from m how much 

     you expect to make, where the proceeds of your business will go , and how much your business 

     would need to make in order break even. This section will also include a proposal to your 

     investors: what you want from them, what they can expect to gain , and exactly where they would

     fit in your plans.

Tips:

- You may want to seek the help of professional business consultants, lawyers, tax accountants, and market research firms in the preparation of your plan so you are not set for failure.
- While it is helpful to consult experts , I recommend that you do the bulk of the work yourself.

- Before you start your own business make sure you have experience first. The knowledge I have is based on real life businesses .
-The effort you put into making your business plan the best it can be will pay off both when you approach potential investors an dwhen you finally get down to business !!!!