BUSINESS PLAN

Updated on:  12/12/2010

Writing The BusinessPlan

Note:  You most need it when getting a bank loan.  Most people need it but if you can organize everything in your mind, then save some time and don't write it.

                I. The Business ( what type is your business?)
               A. Description of business  ( is it a retail, a service?)
               B. Marketing  ( how you will market your business?)
               C. Competition: Do you know it?
               D. Operating procedures:  How exactly will you contact business?
               E. Personnel: Who will Help you?
               F. Business insurance: Do You Need It?

tc.

What goes in a business plan? The main part can be divided into four distinct sections:

BODY OF BUSINESS PLAN

1) Description of the business
2) Marketing
3) Finances
4) Management

Agenda should include an executive summary of what business you are starting.  The get all  supporting documents, and financial projections. Although there is no single formula for writing, planning and developing a business plan, some elements are common to all kinds of businesses for their business plans. They are summarized in the following outline:

Indispensible Parts of a Business Plan

1. Cover sheet
2. Statement of purpose
3. Table of contents

II. Financial Data
               A. Loan applications: Are your applications ready?
               B. Capital equipment and supply list
               C. Balance sheet
               D. Breakeven analysis
               E. Pro-forma income projections (profit & loss statements)
               F. Three-year summary
               G. Detail by month, first year
               H. Detail by quarters, second and third years
                I.  Assumptions upon which projections were based
               J. Pro-forma cash flow

C. Copy of proposed lease or purchase agreement for building space               
              

D. Copy of licenses and other legal documents:  you can get these here online.
              

III. Supporting Documents: such as individual tax returns etc.
               A. Tax returns of principals for last three years Personal financial
                   statement (all banks have these forms)
               B. For franchised businesses, a copy of franchise contract and all
                   supporting documents provided by the franchisor
              

E. Copy of resumes of all principals: if you are alone, don't worry about this one.