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Business Plans Revealed - How to Write Your Plan and Why

A business plan is your vision of where you want your business to go and how you’re going
to get there. It’s a road map and, like a map, it helps to document the route on paper, rather
than simply commit it to memory. A coherent, written plan is as important to your success as a
set of blueprints is to a home developer. Without it, building becomes a chore.

As indispensable as it is, unless you’re using it to secure capital or financing, it needn’t be
overly complex and exhausting. So let’s make it easy. We’ll cover some basic guidelines,
enough to help you create one you can use.

Here are six sections you should write into your business plan.

COMPANY PROFILE

This is the first section you’ll write because it drives the remainder of your plan. What is your
company’s mission? What are you trying to do? This section describes why you’re in
business. If this section reads "I’m in business to make money", you’re in trouble. Any
company can say that. Instead, the profile section should describe how you’re going to meet
the needs of businesses or consumers in such a way that you can make money. You make
money by

1.meeting the needs of customers

2. at a price they’re willing to pay

3. at a cost at which you can make a profit

MARKET ANALYSIS

A critical component, this section should demonstrate your knowledge of the market in
general. It involves thinking about what you can do better than others in the same business,
and honestly acknowledging what can they do better than you. Look at your competitors,
compare them with your company. What you’re looking for is what Xerox called a USP, a
"Unique Selling Proposition" and what I call a JND, a "Just Noticeable Difference" that makes
you unique or different.

How is your industry doing? Is it growing? Shrinking? Are there barriers to entry that will
keep others from offering the same product (service)? Are the big boys moving into your
territory?

Also consider: Is your competition local, regional, national or global?

Consider external factors over which you have little or no control, such as the economy or
changing laws or regulations.

MARKETING PLAN

This section outlines your sales strategies. You’ve got something to offer. Here you describe
how you’re going to let people know about it. Advertising? Press releases? Direct mail? Word
of mouth? Flyers? A blimp?

Take whatever is unique about your business (your JND) and make it the hero. Use it to
develop a positioning statement, such as "I will be the cheapest source of this


product", or "I
will add more value to the customer relationship than my competitors", or "I’ll deliver it faster
than my competitors".

Consider how you’re going to obtain new customers and how you’re going to keep the ones
you get. What are your goals for new business development? How many customers do you
want? How many can you handle?

This section also encompasses new product (or service) development. What will you
introduce during the coming year? When and for how much?

FINANCIAL PLAN

This section addresses your short-term and long-term financial goals. It might be the least fun
but the most important section of your business plan. You don’t have to be an Excel genius to
do it. Here you determine your company’s start-up cost (if new) or overhead costs (if it is an
existing enterprise). You look at pricing and potential for profitability.

Your budget also is contained within this section. What are your fixed and variable expenses?
List the various expenses and estimate how much you’re going to need each month. How
much can you afford for advertising? You also outline equipment purchases, like a new PC or
printer, a Zip drive or a new telephone.

EXECUTIVE SUMMARY

The last part you’ll write, the first section to appear, it sums up the overall intent of the plan.
Write it as if you are going to show it to others to explain your vision.

There, we kept it simple. If you need a more complex, detailed plan, here are some resources:

Here you’ll find a business plan template

http://www.moneyhunter.com

This site has sample plans and some advice

http://www.morebusiness.com

Here are two software packages to help you create a credible plan.

BizPlan Builder Interactive ($90, www.jian.com) offers a template to make a fill-in-the-blank
plan.

Business Plan Pro 3.0 ($90, www.paloalto.com) uses a wizard like the tax or financial software
you’ve seen.

As you write your plan, think beyond what you’re doing today to what you expect to do (or
may be forced to do) tomorrow. Railroads failed because they thought they were in the
railroad business instead of the transportation business. And remember the six Ps: Proper
prior planning prevents poor performance.

About the Author

Mr. Beach is a marketing veteran and webmaster of award-winning BUSINESS-OPP.COM,
featuring a unique Three-Step Process to make money on the internet. All opportunities carry
a money-back guarantee. Free marketing reports, resources and an excellent e-zine, all at
http://www.business-opp.com/

 

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  • indie artist management economic realities insightful strategies

  • industry pro interview what is uncle sam really entitled to

  • inflation affects more than your money

  • influencing skills how to influence people

  • information technology consultants and professionals how to avoid being seen as just another salesperson

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  • interactive mapping brings information to life

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  • investigate before you invest

  • investorideas launches new investor portal rfidinvesting com to follow developments in radio frequency identification and wireless security applications

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  • i wasnt paying attention where does my money go and how can i get some back part 1

  • i wasn t paying attention where does my money go and how can i get some back part 1

  • japan a tiny leap forward

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  • mobile phones and communication

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  • online or offline business

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  • quality care options announces new employee benefit solution

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  • rapid culture change is possible part 1 of 2

  • rapport how to build it with your team

  • real estate agent or broker

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  • real story a hobo friend for my roommate

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  • reduce your debt how to use debt consolidation to get yourself out of debt permanently

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  • rfidinvesting com presents its first online investor forum for rfid stocks and industry

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  • save money and learn more about your finances

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  • secrets of a 6 figure freelance writer

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  • selling your home a fsbos guide to keeping it safe

  • selling your home a fsbo s guide to keeping it safe

  • seniors and family caregivers now have an advocate

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  • setting financial goals part 1

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  • seventy five years old and still counting henry dreyfuss associates still make an impact on american life

  • seven key tax deductions for the self employed

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  • shareholders meeting changing with times

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  • simple steps to project a professional home business image

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  • small business 101 deadly ignorance

  • small business ownership and whole business accommodations

  • small business q a how to handle the occasional oop see

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  • steps you can take to protect your financial information and personal identity from fraud

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  • stop your employee from becoming your competitor

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  • student credit cards 101

  • student credit cards 101 a students guide to credit

  • student credit cards 101 a student s guide to credit

  • success is out there waiting for you to join it

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  • survival on the road a resource for the on the road sales professional

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  • swipe age what is a credit card machine

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  • taxpayer casualty guide preparing for a disaster

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  • technology brings blackberry thumb to business

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  • the google adsense money checks or extra income checks part 1 of 3

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  • the holy grail of wholesale wholesale secrets revealed

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  • the little things you need to know if youre self employed

  • the little things you need to know if you re self employed

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  • the myth of rankings beyond search engine optimization

  • the organized job search

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  • the pros and cons of holding conferences

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  • the search engine of the future mobility has a pricetag

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  • the seven deadly tax sins commonly missed deductions

  • the seven essential elements to successful business communication

  • the smartest way to buy auto insurance part 1 of 4

  • the stale way to success

  • the student loan

  • the ten key competencies of personal productivity

  • the top 10 time termites and how to exterminate them

  • the top 10 ways for managers to build rapport through listening and stuff

  • the top ten worst work at home scams

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  • the vanishing mail

  • thinking beyond debt consolidation loans

  • thirteen more ways to save 100 a month

  • this is a no real estate guru zone

  • this real estate market about to burst

  • three questions you must ask your loan officer

  • three steps to a professional image

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  • thsi real estate market about to burst

  • time management how to make your meetings more productive

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  • tips for cell phone batteries and usage

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  • toll free virtual pbx systems level the playing field for small businesses

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  • top 10 consumer complaints list

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  • use a virtual office as a profitable alternative to paying high rent

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