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.


So, how will you know what to write in your business plan? Do you know the first thing about writing a business plan? It may seem like an overwhelming task to try to figure out what to write for your personal business plan. You may have attempted to take out a few books at the library or even asked a friend to help you. 


But, are you satisfied that your business plan will be successful? Remember, you only get one chance to WOW people, so the first business plan they see will be the one they remember. What if it’s just not good enough?


Okay, that’s enough worrying! It is time to act! Your first order of business is to decide what your business goals are. Once you have a basic idea of what you need, you can then do several things to determine what type of business plan you need as well as where to get it. One of the best things you can do when in need of a business plan is to hire a qualified, experienced business plan service.


Not only will you obtain the best professional business plan available, but you won’t have to struggle over the words yourself. Now, how much better can that be? Using sample business plans from their website, you can see just how well their products can fit your needs.


 Sample business plans can be a great way to visualize the finished product. Using a sample business plan as a guide, you can determine if the product will fit your needs and plans. If not, perhaps you can see what is missing in your point of view.


Having a professional business plan will make all the difference during that trip to the bank. The trip to see if you qualify for funding is enough to worry about. Having a well thought out, professional business plan can give you the comfort and security you will need. 


The first impression you give the lender will be one of professionalism, attention to detail, and organization. That alone will help them realize that your business is worth the risk. What’s more is that there is just no real reason to not have a professional business plan. They are relatively inexpensive and pay for themselves when you secure that loan. Making a smart business choice begins with your business plan!