| There are thousands of new small
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| | the business plan are:
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| businesses created each year in the
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| | *Explanation of the source and amount of
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| United States; some are successful, some
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| | initial equity capital.
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| are not. There is one element that
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| | * Estimated start-up costs.
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| greatly influences whether a new small
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| | * Projected operating expenses.
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| business will have a successful outcome.
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| | * Development of a monthly operating
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| The factor is a solid business plan.
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| | budget for the first year.
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| The business plan should cover the
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| | * Development of an expected return on
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| business basics from goals to management,
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| | investment and monthly cash flow for the
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| from marketing to operations. A business
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| | first year.
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| plan is a map for success, so don't go
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| | * Projected income statements and balance
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| lightly on the details. A good business
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| | sheets for a two-year period.
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| plan should include the executive
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| | * Discussion of a break-even point.
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| summary, a definition of operations, an
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| | * Explanation the business owner's
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| outline of the marketing strategy, and
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| | personal balance sheet and method of
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| how the small business will be
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| | compensation.
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| financially managed.
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| | * Discussion of who will maintain the
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| The Executive Summary
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| | accounting records and how the records
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| The executive summary should give a
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| | will be kept.
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| overview of the business and should
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| | * A provision of a "what if" statements
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| include the following areas:
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| | that address alternative approaches to
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| * A detailed description of the
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| | problems that may develop.
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| business and its goals
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| | In addition to all of the essential
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| * Identification of the business
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| | elements of a business plan as outlined
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| ownership and the legal structure.
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| | above, other important areas to consider
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| * Discussion of skills and experience
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| | when starting a small business are legal
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| the potential owner and partners (if
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| | requirements as well as registration and
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| applicable) bring to the business.
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| | accounting requirements.
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| * Identification of advantages the
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| | Legal Requirements
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| business will have over its competitors.
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| | All small businesses must comply with
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| The Business Operation
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| | federal, state and local laws and
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| The business operation section should
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| | regulations. Small business owners need
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| cover the daily happenings of the
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| | to know the legal requirements affecting
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| potential small business and should
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| | their business. Talking with an attorney
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| include:
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| | can also be very helpful.
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| * An explanation of how the business
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| | Registration Requirements
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| will be managed on a day-to-day basis.
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| | One can't just start a business without
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| * Discussion of hiring and personnel
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| | approval from their state; in other
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| procedures.
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| | words, practicing without a license can
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| * Discussion of insurance, lease or rent
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| | result in all kinds of legal problems and
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| agreements, and issues pertinent to the
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| | can leave one vulnerable to law suits. It
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| business.
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| | is always important to obtain a license
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| * What equipment will be necessary to
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| | or work certificate, a sales tax number,
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| produce the products or services.
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| | and to open a separate business account.
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| * An Outline of the production and
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| | Once the business grows to the point
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| delivery of products and services.
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| | where employees are needed, then the
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| The Marketing Plan
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| | small business owner is responsible for
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| The correct marketing strategy is
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| | withholding income and social security
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| important for any small business. Getting
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| | taxes as well with complying with state
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| the word out and building a customer base
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| | laws covering employee health, safety,
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| is necessary and essential. Therefore,
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| | and minimum wage.
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| the marketing plan should include:
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| | The U.S. Business Advisor has a site at
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| * A description of the product or service
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| | that assists small business owners in
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| of the business specializes in.
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| | meeting the necessary requirements for
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| * Identification of the customer demand
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| | their particular state.
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| for products or services.
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| | Lastly, don't forget about zoning! Be
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| * Identification of the market, including
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| | aware of local towns and cities zoning
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| its size, location and demographics.
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| | requirements. If they are not followed, a
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| * An explanation of how the product or
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| | small business can easily be shut down.
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| service will be advertised and marketed.
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| | Careful planning by way of a business
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| * An explanation of the pricing strategy.
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| | plan and ensuring that all legal
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| Financial Management
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| | requirements are met are important
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| Effective financial management will also
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| | processes for any potential new small
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| help determine how successful a potential
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| | business owner. If done correctly, these
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| small business will be. Therefore,
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| | essential elements can greatly impact the
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| important elements of this to include in
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| | success of a new small business.
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