8 Steps to Creating a Simple Business Plan for 2010

Herman Drost Your business plan is like a road map to long-term success. Have you ever been in a situation where you didn't have a map to find your destination and got lost wasting precious time and money? Well, the same can happen to your business if you don't plan out your business strategies. Why you need a business plan. It gives you a clear direction where your business is heading. Many business owners just jump into creating a business without researching and making a concrete plan. Inevitably, they soon find that they are out of money and have no time or clear strategies how to market their business. Here are 8 simple steps to creating your own business plan (this is by no means a comprehensive plan but a primer to get you started): 1. Name of your business - create a name or reevaluate the name of your business. Does it integrate well with what you are selling? Is it easy to spell and remember? Is it a name that can be well branded over time? 2. Vision - what will your business look like 5 years from now? Think of how you may want to expand it to include other branches or extra employees. 3. Mission statement - this defines what your business really does, what activities it performs and what is unique about it that stands out from your competitors. 4. Goals and objectives - clearly define what you want to achieve with your business. Make sure they are quantifiable and set to specific time lines. Set specific goals for each of your products or services. 5. Strengths, weaknesses, opportunities, threats (SWOT) - by analyzing these characteristics in your business, you will get a clearer idea of what it will take for you to not only to survive but also prosper. This could include such factors as: - your companies own changing industry - the marketplace which may change due to social and economic conditions. - competition which may create new threats and/or opportunities. - new technologies which may cause you to change products or the process in how you do things. Evaluating your SWOT will help you to: - build on your strengths - resolve your weaknesses - exploit opportunities - avoid threats Doing this analysis will help you create a more realistic

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strategic action plan.

6. Strategic action plan - this is the most critical step of your business plan, because without it, your business will not get off the ground. This should include your sales and marketing strategies. Rread How to create your web site marketing plan 7. Financial plan - a business can operate without budgets, but it is clearly good business practice to include it. With budgets, you will be more likely to achieve your business objectives, you will make more-reasoned decisions and you will have better control of your cash flow. For any period, a cash flow statement would include: - The cash and credit sales (or accounts receivable) expected to be received during the period. - The anticipated cash payments (for example, expenses for purchases, salaries, utility charges, taxes, office expenses etc.) - A description of other incoming and outgoing cash, with a calculation of the overall cash balance. This will assess how much money is on hand to meet your financial obligations - what cash has been received and what has been paid out. Knowledge of this cash flow cycle will help you predict when you will receive funds and when you will be required to make a payment. 8. Measuring and evaluation - you wrote your business plan and set the goals with the intent of achieving them. So now break them down into measurable pieces and monitor the results regularly. A plan that cannot be measured is almost always destined for failure. Celebrate your wins and recharge yourself to accomplish your next goal.

Decide beforehand what constitutes a real serious loss and what loss will be acceptable. If you find your goals are unrealistic and unattainable, adjust them, but realize that it takes hard work to achieve them, so don't give up easily. Conclusion: Now that you have a business plan, make it a part of you by knowing and understanding it clearly. Build upon it continuously and refer to it often, so you remain on track to building a profitable business. Resources Small business association http://www.sba.gov/starting/indexbusplans.html Download a free business plan template: http://www.business-planware.com/freepln7.zip Sample business plans http://www.mplans.com/spm Online business planner http://www.planware.org/strategicplanner.htm ================================================== Herman Drost is the author of the popular ebook "101 Highly Effective Strategies to Promote Your Web Site" a powerful guide for attracting 1000s of visitors to your web site. Subscribe to his Marketing Tips newsletter for more original articles at: subscribe@isitebuild.com. Read more of his in-depth articles at: www.isitebuild.com/articles

Critical Steps to Writing a Business Plan

Overwhelmed by the Idea of Writing a Business Plan? Start here.
From Darrell Zahorsky, former About.com Guide See More About:

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Sistrom LTD."Marble made of Concrete" New construction technologywww.sistrom.com See Tony Elumelu liveAt Africa's premier investment and entrepreneurship event. Just $349! www.ConvergenceAfrica.com Writing a business plan can be an overwhelming task. These feelings often translate into immobilization or confusion as to how to start the business plan. Starting a business plan begins with the first step:

1. Audience & Funding Type:

When writing a business plan, you must determine who will be reading it. This decision will shape the business plan. Do you plan to go for debt or equity financing? Each form of funding for your business has pros and cons. For instance, the venture capital market can be very time consuming and competitive. Do you have the time to write the business plan for investor funding and to network within the community? Writing a business plan for investors is 15-30 pages with in-depth analysis and full details of facts and figures to support assumptions of the market. Writing a business plan for the bank is 10-15 pages and focused with the bank's concern with risk. A venture plan presents the upside and potential return on investments, whereas a bank plan reduces the risks and sells the ability to repay the loan.

2. Business Plan Outline:

A business plan outline is the second most important starting point once you've predetermined your audience. The business plan outline should be prepared before the actual research and writing of the business plan.

3. Research & Information Collection:

Once you have made the decision of the type of funding your business requires, it is time for the research. Business plan research covers several key areas: Insight from your experience working and observing the industry you will enter. This data will have to be backed but by the next two sources. Published information from library, Internet, and paid database services will provide information on the market growth, overall industry perspective, and customer profiles. Field research covers interviews with customers, suppliers, competitors, and industry experts. This provides the real insight behind all the published facts.

4. Collection Files:
The easiest way to go about collecting all your experiences, interviews, and research is to create files for each section of the business plan. These files can be: paper-based, computer

files or set-up using business planning software. As you start the research and collection phase of planning, fill your files with notes and printouts.

5. General Industry Overview:

Begin the research process with an overview of the industry; uncovering industry and association reports. By having a general understanding of the industry, you will avoid embarrassment in contacting experts with basic questions. Begin the field research once you have a good grasp of the industry fundamentals and need answers to the hard-to-find information.

6. Analysis:
Once the bulk of the data has been collected, the process of analysis begins. Look at building a competitive profile, contingency plan, risk assessment, etc.

7. Financials:
Start the financials when you have found some average industry ratios for your business. Work closely with your accountant to develop realistic projections. Being overly optimistic will raise eyebrows with your investors or banker.

8. Executive Summary:
Save the first section for last. When you have thoroughly, completed all sections of the business plan, write the summary. Highlight the key points and include the return on investment or loan payback requirements.

9. Review & Editing:

Remember, you only have one shot at making a good impression. A well-written business plan that opens doors and wins the money is a plan that has been revised and reviewed. Do not forget this important step. Ask others for feedback. Make certain to edit, proofread, proofread, and proofread. Business planning is not easy but by following these critical steps to writing a business plan, you will ensure your business has a chance at funding and success in the future.
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A business plan outline is the second most important starting point once you've predetermined your audience. The business plan outline should be prepared before the actual research and writing of the business plan. Once your outline has been set; organize your research files around the layout of your plan. Every business plan follows a generic outline but not every business plan is the same. Business plan outlines differ on 2 factors: 1. Type of Business: Details of critical success factors for businesses in your industry must be included in the plan. Technology companies will discuss R & D, intellectual property, and time to market. A retailer will feature pricing methods, inventory control, merchandising and location. Ensure that your plan is complete by addressing factors important to your industry. 2. Type of Audience: A banker business plan will be different from an investor plan. Bankers like to see risk assessment and planning, loan amounts, repayment terms and collateral. Investors want a return on investment, an exit strategy, and planned growth with the funds. Business Plan Outline General Executive Summary: overview of most important points of business plan and selling your business. Company Description: mission statement, company overview, industry briefing, corporate history, legal structure. Products & Services: description, R & D, pricing, delivery, production. Marketing & Sales: market definition, customer profile, competitive & SWOT analysis, strategy, sales & promotion. Operations: Legal & government issues, staffing, suppliers, alliances, policies, risk assessment, facilities, location, insurance, milestones. Management: key job descriptions, responsibilities, management team, organizational chart, advisors. Financials: Profit & loss, cash flow, balance sheet, financing, debt schedule, use of funds and assumptions, break-even analysis. Business Plan Outline Extras The extras are what takes a plan from 10 pages to 20 pages. More in-depth and detailed for higher levels of funding and a greater complexity of investors. No real need for extras if your

plan does not require it. Here's a brief description of some of the extras that can be added to your business plan outline:

SWOT Analysis: As part of your competitor profile, adding a Strengths, Weaknesses, Opportunities and Threats analysis can show your investors you understand the competitive landscape and your business can operate within that environment. Porter's Five Forces: Michael Porter's 5 forces framework is a standard business tool used by companies to evaluate an industry's key forces. This is an important extra to add to your business plan outline especially if you are a start-up or an existing business entering a new market. Glossary: If your business plan audience is not well-versed in your industry jargon, a glossary adds value to your overall plan. If you are writing a biotech business plan on gene therapy agents, determine the level of knowledge your target audience has on the subject. Publishing Value-Adds: These are simply publication elements to improve the readability and presentation of your plan. This can include: a cover page with logos, graphics, charts, and table of contents.

What goes into your business plan appendix for a complete outline? our business plan will require an appendix following the financials for all supporting documents. This acts as a great reference area to back up your assumptions and provide added credibility to the plan. The appendix is not part of the plan but an addition. Therefore, a 10 page business plan will be 10 pages plus the cover, table of contents, and appendix. What to Put in Your Business Plan Appendix? legal documents market studies resumes customer testimonies photographs & maps distributor/supplier list articles owner's personal financial statements tax statements advertising materials & brochures credit reports character references equipment list glossary reference section/bibliography

Once you have a good understanding of the business plan outline needed for your company then the research and writing can begin. A business plan novel does not ensure success. Provide enough information for decision-makers to give you the opportunity to sell your company and yourself.

Writing a Business Plan - Step-by-Step Outline

From Scott Allen, About.com Guide December 17, 2007
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Int'l School of BusinessFour Degree Options in Paris, New York, Shanghai & Tokyo. Info Here!www.ISM.edu Nigeria Entrepreneur HelpFree Nigerian Business Forms & Software from The World Bank! Nigeria.SMEToolKit.org Nigeria Naira Web HostingJSP, Windows + ASP.NET, MS SQL PHP, MySQL, Sitebuilder & more.www.registeram.com.ng Winston Churchill once said, "Plans are worthless. Planning is priceless." I'll be the first to tell you that not every business needs to have a formal business plan, but any entrepreneur who doesn't plan their business is destined at best to fall short of their potential, and at worst to experience dismal failure. Just because the future is uncertain doesn't mean you can't anticipate it. on the flip side, just because you have a plan doesn't mean you can't be agile and make decisions in the moment based on current circumstances -- you're not locked in to the plan. But the process of writing a business plan helps ensure that all aspects of your business are focused on the same goal, and that you don't have any major gaps in your business model. And, of course, if you go out to borrow money or get investors, you will need to have a formal business plan in place to present to them. A business plan can also help you communicate more effectively with potential employees, partners and customers. I've had an introductory article about business plans here on the site for a while, and there are thousands of them on the web. But an introductory article is just that -- an introduction. Now, though, I've put together a complete business plan outline, with an article for each section to guide you through the process:

The Business Plan: Not just a blueprint Executive summary Company history and background Business concept and value proposition Marketing analysis Production and operations plan Financial assessment and projections Management and human resources assessment and plan Implementation plan Identification of resources Proposed deal structure for investors Survival strategy Growth strategy Exit strategy Why You Need to Write a Business Plan

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Comments December 19, 2007 at 7:57 pm (1) Carlos Hernandez says: : Wow! Heard and met you at Blog World in Las Vegas and you have offered alot value in the detail. Last October I attended Economic Summit:Accessing Capital as presented by the Cal State East Bay Small Business Development folks. One big take-way came from a major bank representative, i.e. one could have the best business plan but if their personal credit rating is poorwatch out! They believe that if one cannot manage their personal money, then it is likely they will also mis-manage their business dough! August 16, 2008 at 12:16 am (2) Quang says: : Hey, excellent guide and links. Its also good to note that sometimes a business plan is great even if you are writing it just for yourself.