1.

Here are some suggested topics you can tailor into your plan:

A vision statement: This will be a concise outline of what your business purpose and goals will be. The people: By far the most important ingredient for your success will be yourself. Focus on how your prior experiences will be applicable to your new business. Prepare a resume of yourself and one for each person who will be involved with you in starting the business. Be factual and avoid hype. This part of your business plan will be read very carefully by those with whom you will be having relationships, including lenders, investors and vendors. Templates for preparing resumes are available in your library, Kinko's, bookstores and the Internet under "resumes." However, you cannot be someone who you are not. If you lack the ability to perform a key function, include this in your business plan. For example, if you lack the ability to train staff, include an explanation how you will compensate for this deficiency. You could add a partner to your plan (discussed in Section 4) or plan to hire key people who will provide skills you don't have. Include biographies of all your intended management.

Your business profile: Define and describe your intended business and exactly how you plan to go about it. Try to stay focused on the specialized market you intend to serve. Economic assessment: Provide a complete assessment of the economic environment in which your business will become a part. Explain how your business will be appropriate for the regulatory agencies and demographics with which you will be dealing. If appropriate, provide demographic studies and traffic flow data normally available from local planning departments. Cash flow assessment: Include a one-year cash flow that will incorporate your capital requirements ( covered in Lesson #7). Include your assessment of what could go wrong and how you would plan to handle problems. Include your marketing plan and expansion plans. Refer to helpful government websites such as the Small Business Administration. See "Resources" on the home page of this website

2. Six

Steps to a Great Business Plan

Start-up entrepreneurs often have difficulty writing out business plans. This discipline is going to help you in many ways so don't skip this planning tool! To make it easier, here are six steps for how to write a business plan: 1. Write out your basic business concept. 2. Gather all the data you can on the feasibility and the specifics of your business concept. 3. Focus and refine your concept based on the data you have compiled. 4. Outline the specifics of your business. Using a "What, where, why, how" approach might be useful. 5. Put your plan into a compelling form so that it will not only give you insights and focus but, at the same time, will become a valuable tool in dealing with business relationships that will be very important to you.

6. Review the sample plans we furnish and download the blank format to a MS Word document. Fill this in as you progress though the course 3. The business plan is a major exercise in demonstrating your managerial competence. A plan is a list
of activities, a "to do" list. The business plan identifies everything which must be done to achieve the mission at a profit. It identifies with clarity the names of all the people who will carry out each part of the action plan. Your business plan will define your business, identifies your goals, and serves as your firm's resume. The basic components include a current and pro forma balance sheet, an income statement, and a cash flow analysis. It helps you allocate resources properly, handle unforeseen complications, and make good business decisions. Because it provides specific and organized information about your company and how you will repay borrowed money, a good business plan is a crucial part of any loan application. Additionally, it informs sales personnel, suppliers, and others about your operations and goals. Step 1

Research, your business opportunity in detail The purpose of research is for the you to make informed choices and decisions. As a business owner you will be asked to make all the crucial decisions about every part of your business. You are responsible for everything that happens in your business and you will be the one held accountable for the success or failure of your business. Having the right information on which to base your decisions is thus the first step that you should take in making any choice regarding your business. The importance of a comprehensive, thoughtful business plan cannot be overemphasized. Much hinges on it: outside funding, credit from suppliers, management of your operation and finances, promotion and marketing of your business, and achievement of your goals and objectives. The business plan is a necessity. If the person who wants to start a small business can't put a business plan together, he or she is in trouble. Despite the critical importance of a business plan, many entrepreneurs drag their feet when it comes to preparing a written document. They argue that their marketplace changes too fast for a business plan to be useful or that they just don't have enough time. But just as a builder won't begin construction without a blueprint, eager business owners shouldn't rush into new ventures without a business plan. Before you begin writing your business plan, consider four core questions: What service or product does your business provide and what needs does it fill? Who are the potential customers for your product or service and why will they purchase it from you? How will you reach your potential customers? Where will you get the financial resources to start your business? Step 2 Consider the basics

The business plan identifies everything which must be done to achieve the mission at a profit. It identifies with clarity the names of all the people who will carry out each part of the action plan. The business plan starts with the mission statement along the lines "to enrich the lives of our customers by ...". For help with creating a mission statement go to our Start-up Resources section or Ask Your Coach. A standard business plan will include sections on the following: The plan includes a complete industry analysis, identifying all the benefits of the product or service, and all its potential competition. The part of the plan identifying the business strategy can be summarized under the headings specialization, differentiation, segmentation and concentration. Our specialization is our area of excellence, our core business. It describes our history and identifies our areas of expertise. Our differentiation is our competitive advantage, the way in which we are better, cheaper, faster and nicer than the competition. This section identifies with crystal clarity the reasons why customers will buy the benefit from us. We should then be able to identify our market segment or market niche, those people who care that we are better, cheaper, faster or nicer. Finally, we identify the resources we will need to concentrate hitting our market segment with our competitive advantage in our area of excellence. We need people, creativity, an advertising plan, plant and machinery, motor vehicles, finance etc. We shall need the co-operation of our partners, other shareholders and directors, customers, suppliers, employees, the bank manager, and even members of our own families. Eventually, we shall be able to put together a sales plan. Our forecast level of sales will determine our purchases, our need to manufacture, productive wages, etc. We shall need an investment in working capital, i.e. an investment in raw materials, work in progress, finished goods, debtors, and a minimum cash balance. We should be able to finance this in part by the use of trade credit, but no doubt we may well have to borrow, and raise equity. At this stage, we should now be able to compile our cash flow forecast, one of the critical documents required in the business plan. We can also forecast the profit and loss account for the first three months, six months and for the first year. We should also be able to forecast the statement of financial position, the balance sheet, at the end of the first trading period. These forecast financial statements reflect our business plan, our list of activities. The business plan must also include a list of the key players in the management team. This list should include names, qualifications, previous experience, and a very precise statement of the contribution each person will make to carrying out the action plan. Finally, we always recommend that business people examine at least three comprehensive business plans put together by their reference group, business mentors, mastermind alliance, or even somebody recommended by the bank manager. Step 3 Writing the Business Plan The body can be divided into four distinct sections: 1) Description of the business 2) Marketing 3) Finances

4) Management Addenda should include an executive summary, supporting documents, and financial projections. Although there is no single formula for developing a business plan, some elements are common to all business plans. They are summarized in the following outline: If you want to go straight to our Free Online Business Plan Writer, click here. We do recommend that you complete this micro module first before doing so. Elements of a Business Plan Cover sheet Statement of purpose Table of contents The Business A. Description of business B. Marketing C. Competition D. Operating procedures E. Personnel F. Business insurance Financial Data A. Loan applications B. Capital equipment and supply list C. Balance sheet D. Break even analysis E. Pro-forma income projections (profit & loss statements) Three-year summary Detail by month, first year Detail by quarters, second and third years Assumptions upon which projections were based F. Pro-forma cash flow Supporting Documents A. Tax returns of principals for last three years B. Personal financial statement (all banks have these forms) C. For franchised businesses, a copy of franchise contract and all supporting documents provided by the franchiser D. Copy of proposed lease or purchase agreement for building space E. Copy of licenses and other legal documents F. Copy of resumes of all principals G. Copies of letters of intent from suppliers, etc. Step 4 Using and Reviewing the Business Plan

A business plan is a tool with three basic purposes: communication, management, and planning. As a communication tool, it is used to attract investment capital, secure loans, convince workers to hire on, and assist in attracting strategic business partners. The development of a comprehensive business plan shows whether or not a business has the potential to make a profit. It requires a realistic look at almost every phase of business and allows you to show that you have worked out all the problems and decided on potential alternatives before actually launching your business. As a management tool, the business plan helps you track, monitor and evaluate your progress. The business plan is a living document that you will modify as you gain knowledge and experience. By using your business plan to establish time lines and milestones, you can gage your progress and compare your projections to actual accomplishments. As a planning tool, the business plan guides you through the various phases of your business. A thoughtful plan will help identify roadblocks and obstacles so that you can avoid them and establish alternatives. Many business owners share their business plans with their employees to foster a broader understanding of where the business is going.