Your Business Plan
The business plan is the most important part of the process as you start own business. Think of it as your blue print. You will look closely at your industry, your customers and competition to determine your opportunities and any obstacles. A business plan defines your business and identifies your goals. You will need a business plan if you decide to seek a loan. It should provide specific information about how you will repay borrowed money. You’ll answer questions such as:
What services or products you will provide and what need does it fill?
Who are your potential customers and why?
How will you reach potential customers?
Where will you get the finances to start your business?
Some helpful business plan resources include the Small Business Administration (SBA) website and books like the Dummies series’ Business Plans for Dummies, published by Hungry Minds. Your local library or bookstore will provide a wide variety of books from which to select.
If you are doing an MLM Business Plan or Multi Level Marketing Business Plan you may follow the standard outline. Growing your business will require the same basic efforts.
The following outline should serve as a guide. This is a business plan sample. Simply adapt it to your own business. Remember it is a flexible document, your small business business plan should change as your business grows.
Executive summary
- Provide a detailed description of the business and goals.
- Describe the ownership of the 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.
- Create a mission statement.
Business Environment
- Describe your products or services.
- Discuss the customer demand for your product/service.
- Describe your market, its size and locations.
- Explain how you will advertise and market your product/services.
- Explain your pricing strategy.
Financial Review
- Explain how much initial start-up funds you’ll require and your source for funding.
- Create a monthly operating budget for the first year.
- Detail expected return on investment and monthly cash flow for first year.
- Provide projected income statement and balance sheets for a two year period.
- Explain your personal balance Sheet and method of compensation.
- Discuss who will maintain your accounting records and how they will be kept.
Action Plan
- Explain how the business will be managed on a day to day basis.
- Discuss hiring and personnel procedures.
- Discuss insurance, lease or rent agreements, and issues pertinent to your business.
- Account of the equipment necessary to produce your products or services.
- Account for production and delivery of products and services.
Once you have completed your business plan, review it with a friend or business associate. We found SCORE (Service Core Of Retired Executives) very helpful when it came to reviewing our business plan. They are an SBA partner.