| It is always said "If you Fail to Plan, you Plan to | | | | You might want to break this chapter down into |
| Fail" | | | | sections such as..publicity and promotions, |
| | | | advertising plans, direct sales force, and dealer |
| Success in business comes as a result of planning. | | | | distributor programs. Each section would then be |
| You have to have a detailed, written plan that | | | | an outline of your plans and policies. |
| shows what the ultimate goal is, the reason for | | | | |
| the goal, and each milestone that must be passed | | | | Moving into the next chapter on competition, |
| in order to reach your goal. | | | | identify who your competitors are--their |
| | | | weakness and strong points--explain how you |
| A business plan is written definition of, and | | | | intend to capitalize on those weaknesses and |
| operational plan for achieving your goal. You need | | | | match or better the strong points. Talk to as |
| a complete but success tool in order to define | | | | many of your "indirect" competitors as |
| your basic product, income objectives and specific | | | | possible--those operating in different cities and |
| operating procedures. YOU HAVE TO HAVE A | | | | states. |
| BUSINESS PLAN to attract investors, obtain | | | | |
| financing and hold onto the confidence of your | | | | One of the easiest ways of gathering a lot of |
| creditors, particularly in times of cash flow | | | | useful information about your competitors is by |
| shortages--in this instance, the amount of money | | | | developing a series of survey questions and |
| you have on hand compared with the expenses | | | | sending these questionnaires out to each of them. |
| that must be met. | | | | Later on, you might want to compile the answers |
| | | | to these questionnaires into some form of |
| Aside from an overall directional policy for the | | | | directory or report on this type of business. |
| production, sales effort and profit goals of your | | | | |
| product--your basic "travel guide" to business | | | | It's also advisable to contact the trade |
| success--the most important purpose your | | | | associations and publications serving your |
| business plan will serve, will be the basis or | | | | proposed type of business. For information on |
| foundation of any financial proposals you submit. | | | | trade associations and specific trade publications, |
| Many entrepreneurs are under the mistaken | | | | visit your public library, and after explaining what |
| impression that a business plan is the same as a | | | | you want ask for the librarian's help. |
| financial proposal, or that a financial proposal | | | | |
| constitutes a business plan. This is just a | | | | The chapter on management should be an |
| misunderstanding of the uses of these two | | | | elaboration on the people operating the business. |
| separate and different business success aids. | | | | Those people that actually run the business, their |
| | | | job, titles, duties, responsibilities and background |
| The business plan is a long range "map" to guide | | | | resume's. It's important that you "paint" a strong |
| your business to the goal you've set for it. The | | | | picture of your top management people because |
| plan details the what, why, where, how and when, | | | | the people coming to work for you or investing in |
| of your business--the success planning of your | | | | your business, will be "investing in these people" as |
| company. | | | | much as your product ideas. Individual tenacity, |
| | | | mature judgement under fire, and innovative |
| Your financial proposal is a request for money | | | | problem-solving have "won over" more people |
| based upon your business plan--your business | | | | than all the AAA Credit Ratings and astronomical |
| history and objectives. | | | | sales figures put together. |
| | | | |
| Understand the differences. They are closely | | | | People becoming involved with any new venture |
| related, but they are not interchangeable. | | | | want to know that the person in charge--the guy |
| | | | running the business knows what he's doing, will |
| Writing and putting together a "winning" business | | | | not lose his cool when problems arise, and has |
| plan takes study, research and time, so don't try | | | | what it takes to make money for all of them> |
| to do it all in just one or two days. | | | | After showing the "muscle" of this person, go on |
| | | | to outline the other key positions within your |
| The easiest way to start with a loose leaf | | | | business; who the persons are you've selected to |
| notebook, plenty of paper, pencils, pencil | | | | handle those jobs and the sources as well as |
| sharpener, and several erasers. Once you get | | | | availability of any help you might need. |
| your mind "in gear" and begin thinking about your | | | | |
| business plan, "10,000 thoughts and ideas per | | | | If you've been in business of any kind scale, the |
| minute" will begin racing thru your mind...So, it's a | | | | next chapter is a picture of your financial |
| good idea when you aren't actually working on | | | | status--a review of your operating costs and |
| your business plan, to carry a pocket notebook | | | | income from the business to date. Generally, this |
| and jot down those business ideas as they come | | | | is a listing of your profit & loss statements for |
| to you--ideas for sales promotion, recruiting | | | | the six months, plus copies of your business |
| distributors, and any other thoughts on how to | | | | income tax records for each of the previous |
| operate and/or build your business. | | | | three years the business has been an entity. |
| | | | |
| Later, when you're actually working on your | | | | The chapter on the explanation of your plans for |
| business plan, you can take out this "idea | | | | the future growth of your business is just |
| notebook" evaluate your ideas, rework them, | | | | that--an explanation of how you plan to keep |
| refine them, and integrate them into the overall | | | | your business growing--a detailed guide of what |
| "big picture" of your business plan. | | | | you're going to do, and how you're going to |
| | | | increase your profits. These plans should show |
| The best business plans for even the smallest | | | | your goals for the coming year, two years, and |
| businesses run 25 to 30 pages or more, so you'll | | | | three years. By breaking your objectives down |
| need to "title" each page and arrange the | | | | into annual milestones, your plan will be accepted |
| different aspects of your business plan into | | | | as more realistic and be more understandable as |
| "chapters." The format should pretty much run as | | | | a part of your ultimate success. |
| follows: | | | | |
| | | | Following this explanation, you'll need to itemize |
| Title Page Statement of Purpose Table of | | | | the projected cost and income figures of your |
| Contents Business Description Market Analysis | | | | three year plan. I'll take a lot of research, an |
| Competition Business Location Management | | | | undoubtedly a good deal of erasing, but it's very |
| Current Financial Records Explanation of Plans For | | | | important that you list these figures based upon |
| Growth Projected Profit & Loss/Operating Figures | | | | thorough investigation. You may have to adjust |
| Explanation of Financing for Growth | | | | some of your plans downward, but once you've |
| Documentation Summary of Business & Outlook | | | | got these two chapters on paper, your whole |
| for The Future Listing of Business & personal | | | | business plan will fall into line and begin to make |
| References | | | | sense. You'll have a precise "map" of where |
| | | | you're headed, how much it's going to cost, when |
| This is a logical organization of the information | | | | you can expect to start making money, and how |
| every business plan should cover. I'll explain each | | | | much. |
| of these chapters titles in greater detail, but first, | | | | |
| let me elaborate upon the reasons for proper | | | | Now that you know where you're going, how |
| organization of your business plan. | | | | much it's going to cost and how long it's going to |
| | | | be before you begin to recoup your investment, |
| Having a set of "questions to answer" about your | | | | you're ready to talk about how and where you're |
| business forces you to take an objective and | | | | going to get the money to finance your journey. |
| critical look at your ideas. Putting it all down on | | | | Unless you're independently wealthy, you'll want to |
| paper allows you to change, erase and refine | | | | use this chapter to list the possibilities and |
| everything to function in the manner of a | | | | alternatives. Make a list of friends you can |
| smoothly oiled machine. You'll be able to spot | | | | approach, and perhaps induce to put up some |
| weakness and strengthen them before they | | | | money as silent partners. Make a list of those |
| develop into major problems. Overall, you'll be | | | | people you might be able to sell as stockholders in |
| developing an operating manual for your | | | | your company--in many cases you can sell up to |
| business--a valuable tool which will keep your | | | | $300,000 worth of stock on a "private issue" |
| business on track, and guide you in the profitable | | | | basis without filing papers with the Securities and |
| management of your business. | | | | Exchange Commission. Check with a corporate or |
| | | | tax attorney in your area for more details. Make |
| Because it's your idea, and your business, it's very | | | | a list of relatives and friends that might help you |
| important that YOU do the planning. This is YOUR | | | | with an outright loan to furnish money for the |
| business plan, so YOU develop it, and put it all | | | | development of your business. |
| down on paper just the way YOU want it to | | | | |
| read. Seek out the advice of other people; talk | | | | Then search out and make a list of venture |
| with, listen to, and observe, other people running | | | | capital organizations. Visit the Small Business |
| similar businesses; enlist the advice of your | | | | Administration office in your area--pick up the loan |
| accountant and attorney--but at the bottom line, | | | | application papers they have--read them, study |
| don't ever forget it has to be YOUR BUSINESS | | | | them, and even fill them out on a preliminary |
| PLAN! | | | | basis--and finally, check the costs, determine |
| | | | which business publications would be best to |
| Remember too, that statistics show the greatest | | | | advertise in, if you were to advertise for a |
| causes of business failure to be poor | | | | partner or investor, and write an ad you'd want |
| management and lack of planning--without a plan | | | | to use if you did decide to advertise for |
| by which to operate, no one can manage; and | | | | monetary help. |
| without a direction in which to aim its efforts, no | | | | |
| business can attain any real success. | | | | With listing of all the options available to your |
| | | | needs, all that's left is the arranging of these |
| On the very first page, which is the title page, put | | | | options in the order you would want to use them |
| down the name of your business-ABC | | | | when the time come to ask for money. When |
| ACTION--with your business address underneath. | | | | you're researching these money sources, you'll |
| Now, skip a couple of lines, and write it all in capital | | | | save time by noting the "contact" deal with when |
| letters: PRINCIPAL OWNER--followed by your | | | | you want money, and whenever possible, by |
| name if you're the principal owner. On your | | | | developing a working relationship with these |
| finished report, you would want to center this | | | | people. |
| information on the page, with the words "principal | | | | |
| owner" off-set to the left about five spaces. | | | | If your documentation section, you should have a |
| | | | credit report on yourself. Use the Yellow Pages or |
| Examples: ABC ACTION 1234 SW 5th Ave. | | | | check at the credit department in your bank for |
| Anywhere, USA 00000 | | | | the nearest credit reporting office. When you get |
| | | | your credit report, look it over and take |
| | | | whatever steps are necessary to eliminate any |
| | | | negative comments. Once these have been taken |
| PRINCIPAL OWNER: Your Name | | | | care of, ask for a revised copy of your report |
| | | | and include a copy of that in your business plan. |
| That's all you'll have on this page except the page | | | | |
| number -1- | | | | If you own any patents or copyrights, include |
| | | | copies of these. Any licenses to use someone |
| Following your title page is the page for your | | | | else's patent or copyright should also be included. |
| statement purpose. This should be a simple | | | | If you own the distribution, wholesale or exclusive |
| statement of your primary business function, | | | | sales rights to a product, include copies of this |
| such as: We are a service business engaged in | | | | documentation. You should also include copies of |
| the business of selling business success manuals | | | | any leases, special agreements or other legal |
| and other information by mail. | | | | papers that might be pertinent to your business. |
| | | | |
| The title of the page should be in all capital letters | | | | In conclusion, write out a brief, overall summary |
| across the top of the page, centered on your | | | | of your business- when the business was started, |
| final draft--skip a few lines and write the | | | | the purpose of the business, what makes your |
| statement of purpose. This should be direct, clear | | | | business different, how you're going to gain a |
| and short--never more than (2) sentences in | | | | profitable share of the market, and your |
| length. | | | | expected success during the coming 5 years.. |
| | | | |
| Then you should skip a few lines, and from the | | | | The last page of your business plan is a "courtesy |
| left hand margin of the paper, write out a | | | | page" listing the names, addresses and phone |
| sub-heading in all capital letters, such as: | | | | numbers of personal and business |
| EXPLANATION OF PURPOSE. | | | | references--persons who have known you closely |
| | | | for the past five years or longer--and companies |
| From, and within this sub-heading you can briefly | | | | or firms you've had business or credit dealings |
| explain your statement of purpose, such as: Our | | | | with during the past five years. |
| surveys have found most entrepreneurs to be | | | | |
| "sadly" lacking in basic information that will enable | | | | And, that's it--your complete business plan. Before |
| them to achieve success. This market is | | | | you send it out for formal typing, read it over |
| estimated at more than a 100 million persons, | | | | once a day for a week or ten days. Take care of |
| with at least half of these people actively | | | | any changes or corrections, and then have it |
| "searching" for sources that provide the kind of | | | | reviewed by an attorney and then, an accountant. |
| information they want, and need. | | | | It would also be a good idea to have it reviewed |
| | | | by a business consultant serving the business |
| With our business, advertising and publishing | | | | community to which your business will be related. |
| experience, it is our goal to capture at least half | | | | After these reviews, and any last-minute changes |
| of this market of information seekers, with our | | | | you want to make, I'll be ready for formal typing. |
| publication. MONEY MAKING MAGIC! Our market | | | | |
| research indicates we can achieve this goal and | | | | Type and print the entire plan on ordinary white |
| realize a profit of $1,000,000 per year within the | | | | bond paper. Make sure you proof-read it against |
| next 5 years... | | | | the original. Check for any corrections and |
| | | | typographical errors--then one more time--read it |
| The above example is generally the way you | | | | through for clarity and the perfection you want of |
| should write your "explanation of purpose," and in | | | | it. |
| subtle definition, why you need an explanation. | | | | |
| Point to remember: Keep it short. Very few | | | | Now you're ready to have it printed and published |
| business purpose explanations justify more than a | | | | for whatever use you have planned for |
| half page long. | | | | it--distribution amongst your partners or |
| | | | stockholders as the business plan for putting |
| Next comes your table of contents page. Don't | | | | together a winning financial proposal, or as a |
| really worry about this until you've got the entire | | | | business operating manual. |
| plan completed and ready for final typing. It's a | | | | |
| good idea though, to list the subject (chapter | | | | Take it to a quality printer in your area, and have |
| titles) as I have, and then check off each one as | | | | three copies printed. Don't settle for |
| you complete that part of your plan. | | | | photo-copying..Have it printed! |
| | | | |
| By having a list of the points you want to cover, | | | | Photo-copying leaves a slight film on the paper, |
| you'll also be able to skip around and work on | | | | and will detract from the overall professionalism |
| each phase of your business plan as an idea or | | | | of your business plan, when presented to |
| the interest in organizing that particular phase, | | | | someone you're trying to impress. So, after going |
| stimulates you. In other words, you won't have to | | | | to all this work to put together properly, go all the |
| make your thinking or your planning conform to | | | | way and have it duplicated properly. |
| the chronological order of the "chapters" of your | | | | |
| business plan--another reason for the loose leaf | | | | Next, stop by a stationery store, variety store or |
| notebook. | | | | even a dime store, and pick up an ordinary, |
| | | | inexpensive bind-in theme cover for each copy of |
| In describing your business, it's best to begin | | | | your business plan. Have the holes punched in the |
| where your statement purpose leaves off. | | | | pages of your business report to fit these binders |
| Describe your product, the production process, | | | | and then slip each copy into a binder of its own. |
| who has responsibility for what, and most | | | | |
| importantly, what makes your product or service | | | | Now, you can relax, take a break and feel good |
| unique--what gives it an edge in your market. You | | | | about yourself..You have a complete and detailed |
| can briefly summarize your business beginnings, | | | | business plan with which to operate a successful |
| present position and potential for future success, | | | | business of your own. A plan you can use as a |
| as well. | | | | basis for any financing proposal you may want to |
| | | | submit..And a precise road-map for the attainment |
| Next, describe the buyers you're trying to | | | | of real success... |
| reach--why they need and want or will buy your | | | | |
| product--and the results of any tests or surveys | | | | You just complete one of the important steps to |
| you may have conducted. Once you've defined | | | | fulfill of all your dreams of |
| your market, go on to explain how you intend to | | | | Julia Tang publishes Smart Online Business Tips, a |
| reach that market--how you'll these prospects to | | | | fresh and informative newsletter dedicated to |
| your product or service and induce them to buy. | | | | supporting peoplelike you! |