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It All Starts With a Plan
A business plan is necessary in all stages of a business--it is your blueprint for success. It sets down your goals for the business, assists in analyzing the feasibility of new ventures, explores the expansion of an existing business, defines your customers and competitors, and points out your strengths and weaknesses. It also details your plans for the future. Use your plan, update it regularly, and refer to it often.
Develop the business plan yourself. After all, it's your business. In some areas you may want to consult professionals for advice. Once the plan is developed, it should also be updated at least once a year.
Use the following basic outline to organize your own plan. There should be a separate paragraph with a heading that identifies each area you are discussing. It should be concise, factual, and easy to read. Excellent sample business plans show how this is done.
Business Plan Outline
- Summary
- Business Description
- Name
- Location and plan description
- Product/service
- Market and competition
- Management experience/expertise
- Business goals
- Summary of financial needs and application of funds
- Earnings projections
- Market Analysis
- Description of total market
- Industry trends
- Target market
- Competition
- Product or Service
- Description of product line or service
- Proprietary position
- Comparison with competitors' products or services
- Marketing Strategy
- Overall strategy
- Pricing policy
- Method of selling, distributing, and servicing products or services
- Management Plan
- Form of business organization
- Board of Directors/Advisors composition
- Officers, organization chart and responsibilities
- Resumes of key personnel
- Staffing plan/number of employees
- Facilities plan/planned capital improvements
- Operating plan/schedule of upcoming work for two years
- Financial Data
- Personal financial statements (previous 2-3 years), if seeking a loan
- Two-year financial projections
- Explanation of projections
- Key business ratios
- Explanation of use and effect of new funds (loans, etc.)
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