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