Like many successful businesses have done, you can launch your business idea without the benefit of a formal business plan—but this applies only if you have all the funds you need or you are just testing the business waters to see how it turns out. Why You Need a Business Plan for your Small Business Writing your business plan is not the end of your business planning process because business planning is a never ending process. If you are just starting a business, having a well-written business plan shows that you have really done your homework.
A business plan is a road map that helps navigate a company to success.
It describes all aspects of your business, including history, products, services, marketing and finance. The plan indicates that a qualified management team exists.
It communicates information to those interested in your business, such as an investor who reviews your plan to determine the likelihood of receiving a good return on an investment. Without a plan, a business will likely fail.
Create a mission statement about why your business exists. Define a vision of what your business wants to become. Define the market that your business will serve. Include the business outlook for your industry, what customer needs are addressed and a profile of targeted customers.
Describe products and services, including their pricing.
Include what makes the products and services competitive. Explain how business activities are accomplished. Indicate what permits and licenses your business maintains.
Include biographies of key managers. Define marketing strategy, including pricing and promotion.
Include customer groups whose needs are met by your products and services. For an existing business, this should cover the past three years. Provide an income statement, which indicates the profit or loss over a period.
For an existing business, cover the past three years.
Provide a cash flow statement, which indicates revenue, expenses and available cash. These are projected amounts if the plan is for a startup business. For an existing business, provide amounts for the past 12 months.
Actual and projected amounts are used to project working capital. Append miscellaneous information that helps define your company.
Include marketing materials, contracts and key employee resumes, for instance.Oct 23, · How to Write a Business Plan [Updated for ] by: Good business plans are living documents that you return to on a regular basis and update as you learn more about your customers, sales and marketing tactics that work (and don’t), and what you got right and wrong about your budget and forecast.
a great step in the business /5(). A complete business plan outline, with an article for each section to guide you through the process: The Balance Small Business Writing a Business Plan - Step-by-Step . We would like to show you a description here but the site won’t allow us.
“Step one: write a business plan. Step two: hire a good attorney. In addition to helping me build a smart, sustainable business structure, my attorney was also a great resource for reviewing my business plan because she’s read thousands of them.
Step-by-Step Guide to Writing Compare and Contrast Essays. If you're a student enrolled in English classes, compare and contrast essays may not be your favorite thing in the world.
Getting Started. There are many articles and resources available on the Internet explaining how to write a business plan, but writing a business plan is more than merely following a business plan template or copying someone’s business plan examples.