Creating
a business plan is an important step. Often it is the step most often missed
by new business owners that don't want to be bothered with paperwork.
However, consider this, for those entrepreneurs that create a solid business
plan success in business nearly doubles. With new business failures so
statistically high in the first five years why wouldn't you want to increase
your odds of success?
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So why does a business plan matter? It's your road map to the future.
Would you get in a car to go on vacation without a map to get you to your
desired destination? Not unless you'd gone the route a few times previously,
right? And since this is your first go around with your new business, it's
wise to create a business plan to increase your odds for success and give
you a definite direction.
A business plan is also used for securing capital from banks, venture
capitalists, investors and the like. None of which will give you the time of
day unless you've done your homework. If you don't care about the future of
your business, why should they?
So, as they say, "Plan Your Work and Work Your Plan". Beginning
the business plan is often the most intimidating part so let us help you
along. It's not so difficult and can even be quite fun. Imagine that?
Building your business plan is a little like building confidence in your
future and that always feels good.
Let's start with what elements are in a business plan.
1. Executive
Summary: This is a quick
description of everything you will be outlining in detail below. A swift
summary of the company, its products, services, and outlook for the future
based on simple statistics.
2. Table Of
Contents: Just like a
book, the Business Plan has a Table of Contents for quick perusal.
3. The Company:
This is a more in depth outline of the company, what it does, how it's
organized, it's goals, direction, history, tasks, profits, etc.
4. Products and
Services: An in depth
description of the product or service. Basically, exactly what your business
will be offering for sale.
5. Production:
What is necessary to produce your product or deliver your service. This
includes raw materials.
6. Marketing: A
detailed marketing agenda including what and how you will advertise. You can
take this straight from your marketing plan outlined in the Marketing
Section.
7. Competition:
A complete evaluation of your competition and how your business will meet
the need in a different or better manner.
8. Obstacles:
What hurdles will your business be met with? How will these hurdles be
overcome? 9. Finances: Cost of the set up of your business as well as the
day to day financial needs for overhead and marketing.
10. Milestones:
This is the future time line of your business.
These are the basic elements of building your business plan. Begin by
making a rough outline for each section and then build to a finished
product. There are many books that offer guidance for these important
planning steps. When you take the time to plan your business your business
will reward you with a long future of financial stability. So jump in and
make your future happen today.
-- Roger Kramer is the owner of AlphaServices. Alpha Services is
designed to assist you whether you are just starting a business, wanting to
fine tune your bottom line, planning to expand or are in serious trouble
with your internal operations or suppliers. Visit his Business Plan Center
at http://www.alphaservices.com
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