BUSINESS PLAN

Every business needs a Business plan. When you reach this point you should have had time to conduct extensive research into the business you have chosen. Now, it time to evaluate and formulate this information. I have met some people that think a plan is strictly something that one uses to raise money for their business start up.

Although it is true that you will need a Business Plan to raise capital to start your venture, it is also true that you cannot or should never; enter into a business without realistic short and long-term goals. It will provide you with this, and can be a reference and a tool to measure your progress. Those of you who plan on financing your own business venture may feel that you can by-pass this area. This may be a crucial mistake. It is my opinion, that every business venture needs a Business Plan, regardless of the financing source. If you are fortunate to finance it yourself, you may not need some parts of the plan, but will still need and use some of its' main components.

How many pages are necessary? There is no correct answer. Your plan needs to be detailed, informative, and accurate. If it is your money, it will or should be 10 to 15 pages when all the major components are used. If financing is needed, as in most cases, all components will be used and the plan may be 15 to 30 pages in length, depending on the business and money needed. Just remember to keep it detailed, informative, accurate and to the point. Eliminate the gobblygook, don’t go off on a tangent.

Most lenders seldom read through a plan that exceeds 30 pages for a small business, much less a small home base business. Your plan should be a major project for you as you must capture their interests without being wordy.

What are the components of your plan? There are many articles and books on this subject, some vary in order, some vary a little in content as each plan is original and unique to the business and area you are in, and how you plan on financing your venture. Some things you will not need if you or your family members are providing the money for your home business. If the business requires outside financing, it is recommended the following components be included in your Business Plan:

Your Business Plan is a major accomplishment of its’ own and should not be taken lightly. If you need help, do not be afraid to find it. You may seek advice from a CPA with your analysis on financial matters, use your marketing research materials you found to help formulate your analysis in this area. Identify your competition. If you are purchasing a franchise, they can help with information and guide you in developing a business plan.

When your plan is assembled, burn good copies of them. Keep one for yourself, and a couple for potential loaners. Don’t be afraid to spend a few dollars for a folder, cover, or binder. This is an important step and should be treated as such. You must know the mechanics of the plan and be ready to answer any questions, and in some cases, you may have to present your plan. This valuable document will formally establish your short and long term goals.

For information on how strategy planning is different (and somewhat the same) than business planning, visit Kris Bovay's site at More for Small Business

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THE BUSINESS PLAN

"YOUR ROAD MAP TO SUCCESS"