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Developing a Business Plan
The following outline of a typical business plan can serve as a guide:
- Introduction
- Give a detailed description of your business and its goals.
- Discuss the ownership of your business and the legal structure.
- List the skills and experience you bring to the business.
- Discuss the advantages you and your business have over your competitors.
- Marketing
- Discuss the product(s)/service(s) your business will offer.
- Identify the customer demand for your product(s)/service(s).
- Identify your market - its size and locations.
- Explain how your product(s)/service(s) will be advertised and marketed.
- Explain your pricing strategy.
- Financial Management
- Explain your source(s) and the amount of initial equity capital.
- Develop a monthly operating budget for the first year.
- Develop an expected return on investment and monthly cash flow for
the first year.
- Provide projected income statements and balance sheets for a two-year
period.
- Determine and discuss your break-even point.
- Explain your personal balance sheet.
- Explain your personal income needs from your business.
- Discuss who will maintain your accounting records and how they will
be kept.
- Provide "what if" statements that address alternative
approaches to any problem(s) that may develop.
- Operations
- Explain how your business will be managed on a day-to-day basis.
- Discuss hiring and personnel needs and procedures.
- Discuss insurance, lease or rent agreements, and other such issues
pertinent to your business.
- Account for the equipment necessary to produce your product(s) or
service(s).
- Account for production and delivery of the product(s) or service(s)
- Concluding Statement
- Summarize your business goals and objectives and express your commitment
to the success of your business.
Once you have completed your business plan, review it with a friend or
business associate or a Small
Business Development Center (SBDC) or Service
Corps of Retired Executives (SCORE) counselor in your area. This business
plan is a flexible document that should be reviewed at least annually
and updated as your business grows.
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