I have heard horror stories from people who, in the start up phase of their new business, have used software they purchased to create a business plan or worse – they paid someone who had no clue what they were doing to prepare one for them.
When you don’t know what elements actually belong in a business plan then usually what you’ll end up with is a bunch of worthless information spread out over tons of paper.
Before opening your doors, you need to be prepared for the many details involved in running a business.
Thinking through these details and putting them on paper helps you to be prepared. Every new business venture should begin with a plan.
The information below will take you through the steps of writing a successful business plan.
While your plan will be uniquely designed for your type of business, there are certain objectives contained within any good business plan. It must:
- Set forth goals and how they will be achieved.
- Define obstacles and outline strategies to overcome them.
- State the legal and organizational structure of the business.
- Quantifies financial needs and make financial projections.
The length of your plan depends on the purpose you will use it for. If you need to acquire venture capital for your business, you may need to provide extensive details for prospective investors.
If your plan is simply a roadmap for you to follow, it can be quite short. Whether it is one paragraph or 100 pages depends entirely on your objectives.
A good business plan will tackle three major areas. Look at the questions within each of the three areas below and answer them as they apply to your particular business.
The Business
What is the legal structure of your business?
Will it be a sole proprietorship, a partnership or a corporation?
What is the name of your business?
Who are the people in your business?
How your business is uniquely positioned to succeed?
What are existing conditions within your industry?
How do you intend to grow?
What is your product?
What does it do?
How will you handle and deliver orders?
The Market
Who are your customers?
Why are they customers?
What motivates your customers?
What need are you fulfilling for these customers?
How will you motivate them to buy from you?
How will you find and attract these customers?
Who is your competition?
What advantage do you have over your competition?
How will you position yourself to win market share?
Do you have technical data, surveys, or information sources to back up your claims?
Finances
How much money are you bringing to your business?
What are your start-up costs?
How will the money be used?
When will your business become profitable?
What are your financial projections for the next six months?
What are your financial projections for the twelve months?
What are your financial projections for the next five years?
I have listed a few key elements to include in your business plan. Keep in mind that your business plan is unique to your business, so don’t be afraid to beef things up as needed.
Executive Summary – This is a summation of the important points within your business plan. It should not be over three pages long.
This summary is of particular interest to potential investors that may be willing to invest in your business. It allows them decide if you are a worthy investment vehicle.
Company Summary – Describes your business, customer focus and your goals. This would include things such as your business structure, start-up projections and business location.
Products and Services – Describes what you have to offer, its advantage to the customer, your reasoning for the need of your product or service and a look into your place among the competition.
Market Analysis – This gives details on who, what, where, why and how within your market. This also includes an analysis of your industry and your strengths therein.
Marketing and Sales Strategies – The key to this section is your plan to operate in a competitive environment. Sales forecasts and marketing details give an in-depth look at actual customer acquisition.
Operations and Management – Fully details the structure and operation of your organization.
Financial Plan – Provides a comprehensive look at business cash flow, profit and loss, break-even analysis, and other financial indicators.
In conclusion, your business is less likely to fail if you are able to predict outcomes.
Your business plan sets realistic goals for success. The above information serves as general map.
You fill in the details. How many details? As many as are needed. Most assuredly, your efforts will be rewarded for years to come.
Remember, you are in it to win it so make sure you stay focused and keep your eye on the prize!
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Have an awesome day!
Pam Lawhorne
{ 8 comments… read them below or add one }
Pam,
Great blog. If we all had the space and the time to have you on our team, we would all be Mavens in our fields. Thank you for the amazing, info, clear and so helpful.
Peace
Micaela Cordoba
Rev. Micaela Córdoba
Traditional Healer/
Founder~ Catching the Spirit
Ms. Micaela -
Thank you for the vote of confidence! It always feels good to know that people appreciate you sharing your knowledge. I’m looking forward to working with you and your team as you launch some marvelous projects of your own!
All the best! Pam
After freelancing then being hired by a client to work full time, I am now thankfully back in the self employment seat. This time around, I have a website and an email marketing list. I am very knowledgeable in my field and know what differentiates me–I have a background in performing arts and am not afraid to think outside of the box and test alternative strategies. To help me further with the creative juices, I even recently took a stand up comedy class!
While being outgoing and networking are other strengths, what I’ve been missing is a full fledged business plan and I appreciate the way you have broken it down here! Given the bits and pieces I currently have, this blog post will allow me to gather what is missing and formulate a draft by the end of this month. I am excited! Feel free to check out my site http://www.jaclynmullenmedia.com and let me know what you think.
Jaclyn Mullen recently posted..Hello world!
Jaclyn -
Congrats! Glad to hear that you’re back in the driver’s seat! You’ve got a leg up because most people are not willing to try creative marketing strategies. there’s a reason why people hold signs outside dressed as a sandwich – because it works! One of the things I love most about what I do is when I write or post something that helps someone on their own personal journey. To me it makes it all the more worth while and let’s me know that my sleepless night are not in vain!
Thanks so much for posting. I will check out your site later today.
Pam
as I website owner I think the articles here is real excellent , appreciate it for your efforts.
Thanks Kercy for checking out my site. I appreciate the kind words and support!
Pam
Yet Another comrehensive share
Good shout !
Thanks Sedita! I appreciate the support! Thanks for visiting.
pam