Developing a Business Plan

The following outline of a typical business plan can serve as a guide:

Introduction

• Give a detailed description of your business and its goals.
• Discuss the ownership of your 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.

Marketing

• Discuss the product(s)/service(s) your business will offer.
• Identify the customer demand for your product(s)/service(s).
• Identify your market - its size and locations.
• Explain how your product(s)/service(s) will be advertised and marketed.
• Explain your pricing strategy.

Financial Management

• Explain your source(s) and the amount of initial equity capital.
• Develop a monthly operating budget for the first year.
• Develop an expected return on investment and monthly cash flow for the first year.
• Provide projected income statements and balance sheets for a two-year period.
• Determine and discuss your break-even point.
• Explain your personal balance sheet.
• Explain your personal income needs from your business.
• Discuss who will maintain your accounting records and how they will be kept.
• Provide "what if" statements that address alternative approaches to any problem(s) that may develop.

Operations

• Explain how your business will be managed on a day-to-day basis.
• Discuss hiring and personnel needs and procedures.
• Discuss insurance, lease or rent agreements, and other such issues pertinent to your business.
• Account for the equipment necessary to produce your product(s) or service(s).
• Account for production and delivery of the product(s) or service(s)