We could (and maybe we will) write a series just on this topic; but let’s start with an overview. A business plan may seem like a huge, tedious undertaking with little return results, especially when you have so many other things to do as a new entrepreneur. But don’t make the mistake of thinking that way. You will gain so much by going through this process!
All business plans describe the business in detail and show
financial calculations/budgets projecting income. Beyond that, different business plans serve
different purposes. If you are planning
to obtain business loans or attract investors, a business plan is usually a
requirement. This type of plan should be
written to sell investors on your business vision. A plan to persuade potential
investors/money-lenders to support your business must include thorough market
research, a management plan, and detailed financial information including
projected revenue and expenses. This
plan must be written clearly and professionally.
If you are not planning to apply for loans or entice
investors, your business plan is a tool to make sure you have thought of
everything. This type of plan can be
much more informal, because it is for internal use only; however, don’t do
yourself the disservice of thinking you can just throw something together. You will get out of it what you put into it,
and you may save yourself the heartbreak and financial distress of learning
much too late that your business isn’t viable.
A good business plan is comprehensive, and should include
the following information at a minimum:
·
A thorough description of the business including
its purpose, mission, and vision, and how it will work
·
A market analysis
·
Detailed financial projections, including
start-up costs
·
A competitor analysis
·
Resumes of the key players in the business
·
A marketing plan
What other items would you include in your business plan?
___Kim Luedke is Co-owner of ProfessionalEdge Associates, offering a wide range of marketing and support services to businesses that want to increase their success, but aren't in a position to add to their staff.
