Things You'll Need:
- a strong business idea
- market data
- competitor data
- word processor
- calculator
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Step 1
Describe your product, including what phase of development it has reached. What makes your product special and unique among its competition? How does it fulfill the needs of your target customers in a special or unique way?
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Step 2
Define your target customers in terms of demographics, psychograhics and buying behaviors. If your target customers fall into more than one category, you may consider segmenting your market into various sub-markets.
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Step 3
Analyze your competition on the basis of price, location and product features. You can write anecdotes to describe your competition, but a well-laid matrix will communicate the differences and similarities between your company and its competitors.
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Step 4
Describe your management team, including each person's role and qualifications
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Step 5
Describe your marketing plan in terms of product, price, place and promotion. Don't confuse marketing with advertising. Your promotional plan should address public relations and personal selling opportunities as well as paid advertising.
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Step 6
Provide your financial plan including an initial balance sheet, proforma income statement and cash flow chart. Don't confuse income with cash flow. Your plan needs to address both.
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Step 7
Evaluate the opportunities and risks facing your new company. These will come from new technologies, changes in the economy, competitors entering or exiting the market, and potential new product developments.
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Step 8
Write an Executive Summary that ties all of the above information. Your summary should be short and concise, as it may be the only part of the business plan that will be read by potential partners and investors.
