How to create a bussiness plan

It doesn't matter whether you have had a collegedemographics, etc. This section is where you want to
education, or years of entrepreneurial experiencemention a few pertinent numbers, including any market
under your belt -- Anyone can write a business plan!surveys.
We want to help you write a quality business plan. ThisSurveys can be very powerful tools in showing the
guide gives you a good background of knowledge.potential of your venture.
Business plans are needed for a number of reasons:The advertising section should not only describe the
To raise capital To have anyone take your venturemeans (direct mail, newspaper, cable, radio, internet,
seriously.etc.) but also cost analysis, your edge over the
To make sure you will have a viable enterprise.competition, public relations, guerilla tactics, etc. In this
To expand your existing business.section, you need to convince your reader of how you
To attain business loans To give you a guide forwill sell your product or service.
running your business.Having an 'in' with an established client base can be
Honestly, money is why we all write the businessextremely helpful.
plans! You already know how you are going to runThese days, just saying: 'Make it and they will buy'
your business, it's all in your head. But, as soon as youdoes not work. If someone is considering loaning or
realize you need money to do it right, a business planinvesting money with your venture, they must see that
starts to sound better.you can make sales. Whether you realize it or not, you
A few things before you get started: 1.Start your planare a salesman; from the moment you began talking
with the numbers. Plot out your sales versusabout your business idea to friends and family, you
expenses, projecting forward up to seven years.became a salesman! Your business plan is merely an
This is where spreadsheet programs come in handy.in-depth sales brochure. The more you think of it as
Don't be intimidated, we have the solution that givessuch, the better the plan.
you real business plan financial templates. More laterCompetition The Competition section will cover exactly
on.who you compete against. You want to compare
2.Don't get overwhelmed. Once you get going, youevery aspect of you versus them. You must know
realize that you already know what you need to say.your competition inside and out. This is where you
3.The business plan is a small part of what will get youmake or break your plan. And there is always
financed. A Private Placement Offering can be crucialcompetition- Maybe not in your town, but they are out
to money-raising in the venture capital world - We willthere. With the every increasing growth of the internet,
show you how to use our sample to create your own.competition can be a keystroke away.
4.This guide briefly describes the pieces you need toAlso, there is indirect competition.
put together your business plan. Use it as a referenceThese companies can include those that have similar,
tool in the writing process.but not the same as, your product or service.
This following is a brief description of each majorManagement Team This section is important for
heading required for a professional business plan:overall confidence in those who are to set forth the
Executive Summary This is your opening paragraph(s),actions described in your plan.
the most important part of your written plan! MostManagement can include, but not limited to, yourself,
readers of your plan look to the Executive Summarypartners and key employees.
to capture their interest, and entice them to read on.You want to briefly describe each person's
The Executive Summary will state your companybackground, position in the company and duties to be
name, nature of your business and what you need toperformed. Each person should fit like a piece of a
make it happen. This can be done in a singlepuzzle in the overall company structure, and be
paragraph, do not feel that you have to state yourinvaluable to the future success of the company.
entire case in this section. But, be specific...If there are key positions that have not been filled, you
Your plan is not the place for generalities. If you aremust mention them.
unsure about the name of your new venture, don'tDescribe the nature of the position and qualifications
worry, just pick something that sounds good. You willrequired. Don't worry if you have many openings, just
see that nothing you have in your plan is etched inknow the position and who you need to fill it.
stone; things change! Once you are up and running, goTry to limit each person's coverage to one half of a
with the flow.page. Make them powerful, noting key and positive
In closing your Summary, make sure you include thepoints.
amount of money needed, whether it be in the form ofRemember to back up this section, you must have
debt, equity or a combination of both. Generally, debtresumes as part of your attachments to the plan.
financing is in the form of a loan from a bank or otherYou may also want to list an advisory board. The
means. Equity financing deals with investors owning aadvisory board consists of friends or business
portion or shares (more on financing later in thecontacts who can offer advice for your business.
manual).These people do not have to have a stake in your
Background This section works both for newcompany, just offer experience in areas that
start-ups, and existing businesses looking to expandcompliment your venture.
operations.Financials/Operating Performance In the financial
With a start-up situation, you want to explain thesection, there is no need to be long winded. Mention
background of the type of business you want to startsome gross sales and profits that you anticipate, throw
and/or your new product or service. Do not take thein a graph or chart (samples are included in our
background literally, this is a catch-all section forsoftware package). You also want to re-iterate the
anything you want to say.money needed to be raised, and by which means.
This is not rocket science, it will all come naturally onceNow you are faced with the decision of the legal
you commit to writing your plan.structure of your company; Corporation, Limited Liability
Now if you have an existing business, the backgroundCompany, Sole Proprietorship or Partnership.
is self-explanatory. You want to describe yourToday, unless you are a one-man show, you need a
business to-date.Corp. or LLC. The main reason deals with liability: In a
This section can easily work as being listed as 'History'Sole Prop. Or Partnership, the person(s) involved can
instead of 'Background'. Be factual, not long-winded.be personally liable for anything attached to the
Always remember, you want to get your point across,company. Anything you own can be fair game to
but try to be concise. Too much 'blah, blah, blah' willrepay company debts and lawsuits.
bore your reader. You want the reader to haveCorp.'s allow you to defer some or most of the liability
questions after reading the plan, or else, he probablyto the Corp only; you are a shareholder and can loose
did not read it.only your shares in the company. Another benefit is to
Objectives The 'Objectives' section is not merely thereregister a Corp. in a state where taxes are fewer, like
to boast: "We will be the best widget company in theNevada, which has no state income tax.
history of widgets". In this section, you want to clearlyIn most cases, you will have a set Offering for your
state the goals for your company.venture. When you are dealing with a Corporation,
You want to start with some bullet points, for example:there are a total of shares outstanding and those you
Achieve $100,000 in sales by year's end Completeare offering for sale. The combination of all shares
marketing campaign in first two months Begindetermines each person's percentage of ownership in
construction by Summer 2006 Hire sales team by Aprilthe company.
2007 Once you give some bullet points, then expandThe description of the offering should be detailed in an
on them. Also, you will want to talk about other shortOffering Memorandum, which includes risk, share
term and long term goals. Generally short term is 2 - 5breakdown, dilution, etc. The Offering Memorandum
years out, and long term covers 5+ years.should precede the business plan, and in most cases,
It looks good to have a bigger picture in mind, althoughwill add more credibility to your venture. It also covers
an investor is always looking for that 'exit strategy'.the legal areas of your offering, a must for new
The exit strategy is the way out for your investor (exitventures seeking equity financing.
strategy is covered later in the manual).The exit strategy is important to some investors. List
The Experience This section may or may not bethe potential ways out of the deal once revenues are
appropriate. There are a number of different headingsgenerated.
you may use, but 'The Experience' allows you to paintYou may want to leave an option to buy out the
a picture of your service/business idea. It can be calledinvestor after a certain length of time. Or, you may
'The Product', "the Concept', 'The Service', etc. Simply,plan on a secondary offeringlater in the life of your
you are describing, in detail, what your business is allbusiness, using some of the proceeds to buy back
about. What makes your product or service betterexisting shares.
than the others.At the end of this section, you want to direct the
Marketing Analysis & Advertising Depending on thereader to your financial attachments.
scope of your venture and target market, you mayAttachments You must include the following
want to split this into two separate sections; oneattachments with your plan: Projected Profit and Loss
dealing with your market analysis, the other withStatement Break-Even Analysis Balance Sheet (if
advertising.applicable) Cash Flow Statement Return on
In the market analysis, you describe who yourInvestment Statement Marketing Analysis
customer is. This will entail everything you know aboutDemographic Report Advertising literature Photos and
who will purchase your product, your competition,or examples, clippings, diagrams Key person resumes