HOW TO WRITE A KILLER BUSINESS PLAN
The most important document you will ever write for your business will be the Business Plan. No bank, governmental agency, grant provider or venture capitalist will look at your proposal unless you have written a Business Plan. The reason is that the primary cause of new business failure is lack of a Business Plan. It is not enough to have it in your head, because until you go through the exercise of writing it down in detail, you will not have examined fully the positives and negatives of operating your business.
The following is a good format to use:
Title Page
· Name of company
· Address
· Phone number, fax number
· E-mail address
· Name of contact person
· Table of contents
The Venture Summary
Also known as the Executive Summary (1 or 2 pages – prepared as a separate document)
This is a brief summary of the highlights of your Business Plan, so you may want to write it after you have completed your Business Plan. It is your most important marketing document and should be written with the goal of attracting interest but not providing too much information. It should elicit a request for your full Business Plan from those who are truly interested in your company, but it can also serve as a brochure or even as copy for your website.
The Business Plan
Company Description (1 page)
This is your description of what your company does and how that is accomplished. Go into operations details in the Build-Out section or if you are describing a mature company, create individual sections for Operations, Location & Facilities, Expansion Plan, etc.
· What is the legal structure? (sole proprietorship, partnership, LLC, S-Corporation, C-Corporation)
· Dates of formation and incorporation.
· Description of the general business.
· What does it do?
· What is the product?
· How does the business operate?
· Hours of operation.
· Facilities – storefront, home office, warehouse/office
· Who are the suppliers?
· Give a general description of your customers.
· What is your present situation?
· Pre-start up
· Start up
· Young operating company
· Mature company
Products & Services (1 page)
If your product or service is too complex to discuss fully in the Company Description section, add that discussion here.
· Patent, trademark, licensing or copyright information.
· What makes this product/service unique?
· What are the features your customers find most attractive?
Target Market (1 page)
· Who are your customers?
· Where are they located?
· What is your source of new customers?
· Why would they do business with you?
· Price.
· Customer service.
· Proprietary advantage.
Marketing Plan (1 or 2 pages)
· Define your target market/customer.
· How will you reach that customer?
· Advertising?
· Telemarketing?
· Internet strategy?
· Pricing strategy.
· How do price, distribution, sales figure into your plans?
Competition (1 page)
· Who are your main competitors?
· Where are they located?
· What share of the market do they enjoy?
· What do they do that makes them successful?
· How does your company compare with them?
· Why would someone do business with you, instead?
Build-Out (1 or 2 pages)
· Create a roadmap to the launch of your company.
· Key benchmarks – present in table form with explanations.
· How will this be accomplished?
· What professional services or products will you need to accomplish your launch or expansion?
Operations (particularly if you are describing a mature company)
Specialized Technology (1 page)
· Specialized equipment needed.
· Specialized software or other technology needed.
· Obsolescence.
· Estimated replacement dates and costs.
Location (1 page)
· Describe your facilities in detail.
· Parking considerations.
· Lease or rent provisions.
· Neighboring businesses.
· Zoning laws that apply.
· Traffic – foot traffic and walk-ins, no need for traffic, etc.
· Why is this location ideal for your business?
· Any plans to relocate?
Daily Operations (1 page)
· How many employees? Part time? Full time? Contract?
· What are their functions?
· Plans for future hires or layoffs?
· Briefly describe your daily operations.
Keys to Success or Contingency Plan (1 page)
· What are the top five risks that your company will be exposed to?
· Briefly state a plan to deal with each if it arises.
Management (1 page)
List the officers and key managers or employees of your company and their individual responsibilities – how they contribute to the company’s success. Include a brief description of their education and experience. If you have a Board of Directors or outside advisors, list them here with descriptions of their backgrounds/business and how they contribute.
Financial Plan (approx. 5 spreadsheets plus analysis)
· Financial Projections generally include the following spreadsheets:
· Sales Projections
· Personnel Projections
· P&L or Income Statement
· Cash Flow
· Balance Sheet
· Keep in mind the above discussions in creating your Financial Plan.
· Charts and graphs can be used for illustration purposes.
· Create three years of projections.
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You will have a very detailed Business Plan that can be used for obtaining financing or as the basis for an operating guide. However, it is a good idea to take it to a professional start-up consultant, accountant, banker, or your local SBA or SCORE office and sit down with a counselor to pick it apart just to make sure you are not deceiving yourself in any of your assumptions or projections.
Further suggestions:
· Talk about facts, do not talk about your dreams for success.
· Be conservative in your estimates.
· Take into consideration what happens to your industry during a recession, and talk about it in your Business Plan.
· Document your research.
· Consult a professional for assistance.
· Be as concise as possible, but try to avoid ‘legalese’.
