Putting together a business plan

Putting together a business plan

So you have a business idea but do you have a plan? Every business, whether small or large, starts with a rock solid plan. Regardless if your business plan is created and written on old pieces of scrap paper or produced on full color flow charts with power point presentations – it is vital in giving you direction and guidance on developing your company to it's fullest potential.

What does a business plan consist of? In a nutshell your business plan should be comprised of a mission statement, a detailed description of the products and/or services that your company provides, a projection of your financial earnings, an analysis of your market, and management strategies that explain just how your business will accomplish the goals set forth.

Let's start with the mission statement. Your mission statement should really set the entire tone for your business and its goals. People should be inspired when reading your statement and understand the outcome of your plan.

Next in the business plan you will want to describe the products and/or services that the company will provide. Make a complete description of everything that your business will provide both now and in the future. Be as descriptive and complete as possible. Anyone whom is reading your business plan should have a crystal clear picture of the product you will provide.

Now let's move onto the section in your plan where you list down the financial earnings that you expect (or forecast) to earn. You should also list down planned profit losses and expenses. There are financial statements that you must plan on putting together also; a profit & loss statement, balance sheet, and cash-flow forecast.

The analysis of your market is the next little piece of the business plan project. Have you researched your intended market? Do you know the number of your potential customers? Do you know the growth rate of the market? These are all factors your market analysis should be made of.

Last but not least, the business plan will list down exactly how you intend on accomplishing the goals that you have listed in your plan (above). Make the mechanics behind achieving your business goals as realistic as possible.