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Starting a Business - Business Plan
Starting and managing a business takes motivation, desire, talent and a good business plan. To increase your chance for success, take the time up front to explore and evaluate your business and personal goals. Then use this foundation to build a comprehensive and well-thought-out business plan that will help you reach these goals.
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Your business plan should detail how the business will be operated, managed and capitalized. Ok, so what exactly is a business plan? Well, let's turn the words around and say that a business plan is a written plan about your business and how your special skills and experience combined with a good, well-thought out marketing plan and realistic, obtainable financial projections (estimates)will result in a successful business. Read on to learn what you should include in your business plan.
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A typical business plan will describe the business you are starting, explain the experience you bring to the business, discuss your marketing plan, identify your goals, show your need for financing and what you expect to do with the borrowed funds. In other words, it will explain what you want to do and how you expect to get there. Just as we plan our dinners, vacations and weekends away from work, we should plan how to start a business.
Because a business plan provides specific and organized information about your company and how you will repay borrowed money, a good business plan is a crucial part of any loan application. Additionally, it informs sales personnel, suppliers, and others about your operations and goals.
The basic components of a business plan include:
- a description of the business
- your marketing plans
- your financial picture, current and projected
- information about the owner or owners written in a format similar to a resume
Despite the critical importance of a business plan, many entrepreneurs are reluctant to prepare a written document, mostly because they just don't have enough time. But just as a builder would not begin construction without a blueprint, eager business owners shouldn't rush into new ventures without a business plan.
Before you begin writing your business plan, consider four core questions:
- What service or product does your business provide and what needs does it fill?
- Who are the potential customers for your product or service and why will they purchase it from you?
- How will you reach your potential customers?
- Where will you get the financial resources to start your business?
What does a real business plan look like?
Business Plan Pro, published by Paloalto software, has posted 60 different sample business plans that you can review on their website at:
Bplans
Once you have completed your business plan, review it with a friend, business associate or CPA. When you feel comfortable with the content and structure, make an appointment to review and discuss it with your banker. The business plan is a flexible document that should change as your business grows.
If you need help preparing your business plan or if you would like to have it reviewed, please call me at: 770-969-9850 and good luck!
Starting A Business
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| ©2010 Michael Johnston, CPA. All Rights Reserved. |
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