What Exactly is My Business Plan?

Seven Steps to Your Business Plan Success

Think of your business plan as your agenda. 

Your business plan should typically be intended to be amended. It’s perfectly fine to change your mind. 

You may have to present your Business Plan to your financial institution. The financial institution will use the information for the purpose of making you a loan. There are no set formats or formulas to create a successful business plan. You can use your imagination here.

However, there are some basic elements that are required for almost all funding and operating solutions. Already got money? Good. You still may want to create a plan to define your organization's direction.

As you move through these seven steps, make notes. Take out a blank piece of paper for each step. It doesn't really matter which step that you complete first or which step that you complete last. For example, Step three should be your very last. You can jump around through the steps in any order that you like.

During this business planning process, you will gain immeasurable insight into the concepts and possibilities of your business. This stage of your planning will be the most important step toward your success. You will likely end up with a substantial document. 

This document will have, Front Matter--the beginning stuff-- ,a Body--the middle stuff-- and,  End Matter--the final stuff.

Front Matter--

The beginning stuff

Step 1

Your Business Plan will be a professional reflection of your business. You will want to include a Covering Sheet. Make it simple. Center your document's name and include your contact information.

Step 2

Create your Executive Summary. This will be your statement of purpose. Answer these questions in your Executive Summary:

What will be your businesses main goal?

Who will benefit from your product or service?

Who will be your partners?

Where will your business be located?

Step 3

Include a Table of Contents. This will allow your readers to quickly find the specific page with the information that they need.

Body--

The middle stuff

The body of your business plan can be divided into these distinct sections. These sections can be used to describe the different aspects of your business. You can move through these sections in any order or fashion that you like. It is simply impossible to effectively complete these steps in one draft. For example, you may choose to work on one section a day until you have that successful first draft.

Step 4

Create a Description of your business. Ask yourself some general questions.

Am I supplying a product or a service?

Is this a large or a small business?

What type of clients I you work with?

What times of the day or night will I operate?

Use this section to provide information about your businesses key personnel. Include background information of key personnel. Describe their knowledge, skills and abilities. Describe their experience and their qualifications.

Step 5

Take advantage of your Marketing Analysis. This will give you a chance to study your competition. What does your competition provide in comparison to yours? What do they charge for their services or products in comparison to yours? What type of market is there for your business? Where will your business fit in? How will customers know about your business? Will you advertise?

Step 6

During your business planning process, you will find that your business will need some type of Financial Analysis. This section of your Business Plan should begin with a breakdown of your business's assets.

Make a list of the things that you already have.

Make a list of the things that you don’t have.

You will want to include the expected salaries of individuals. You will want to determine how much you will need for your initial inventory, building rent, utilities, and supplies. You can create 3-year profit and loss projection statement.

End Matter--

This is the end stuff.

As you work through these previous six steps, you will probably collect legal papers, rental receipts, resumes and many other supporting documents.

Step 7

Create an appendix. Include important relevant proof of your business plan claims. You may have created spreadsheets for your budget analysis and charts for your marketing plan. Use this section as your proof of your efforts. This section will serve to back up your claims, and illustrate to financial or granting organizations your overall business development.