• Define Your Business
• Find Good Resources
• Write Your Business Plan

Important questions you will need to answer:

• What business would you like to start?
• What is your product or service?
• What is your experience in this field?
• Who will your customers be?
• Who will your competitors be?
• Why do you feel you are ready to start your own business?
• Where do you want to be in 3 years; 5 years?
• How many days a week/hours a day are you willing to work?
• How do you plan to fund your business?

A Business Plan is your Blueprint to a Successful Business!

Preparing a business plan is important for two reasons:

1. Preparing a plan forces you to think through every aspect of your business. If you need capital, your business plan will be one of the first things the lender or investor wants to see.
2. A business plan serves as an assessment tool for the owner. You can reaffirm the viability of your ideas as you work your way through the points of the plan. As your business grows, a plan will help keep track of the details and make sure the business is progressing as you intended.

Many excellent resources are available online or at the library to help you write your business plan. Following the outline below can give you a good start. There are also great resources available on the Resources page of our Website.

INTRODUCTION:

• Give a detailed description of the business and its goals.
• Discuss the ownership of the business and the legal structure.
• List the skills and experience you bring to the business.
• Discuss the advantages you and your business have over your competitors.

MARKETING:

• Discuss the products/services offered.
• Identify the customer demand for your product/service.
• Identify your market, its size and locations.
• Explain how your product/service will be advertised and marketed.
• Explain the pricing strategy.

FINANCIAL MANAGEMENT:

• Explain your source and the amount of initial equity capital.
• Develop a monthly operating budget for the first year.
• Develop an expected return on investment and monthly cash flow for the first year.
• Provide projected income statements and balance sheets for a two-year period.
• Discuss your break-even point.
• Explain your personal balance sheet and method of compensation.
• Discuss who will maintain your accounting records and how they will be kept.
• Provide “what if” statements that address alternative approaches to any problem that may develop.

OPERATIONS:

• Explain how the business will be managed on a day-to-day basis.
• Discuss hiring, personnel procedures.
• Discuss insurance, lease or rent agreements and issues pertinent to your business.
• Account for the equipment necessary to produce your products or services.
• Account for production and delivery of products and services.

CONCLUDING STATEMENT:

• Summarize your business goals and objectives and express your commitment to the success of your business. Once you have completed your business plan, review it with a friend or business associate or SCORE (Counselors to America's small business) counselor or SBDC (Small Business Development Center) representative.
• When you feel comfortable with the content and structure, make an appointment to review and discuss it with your lender. Keep in mind, your business plan should change as your business grows.