How to Write a Business Plan

Difficulty: Moderate

Instructions

Things You'll Need:

A Beginner's knowledge of the following key terms:
small business plans
writing business plans
business plan sample

Step 1

Step 1) Writing a business plan is essential for every entrepreneur. Business plans keep us grounded to our financial goals as well as our expenses. The first step in writing a business plan is RESEARCHING the business you are going to start thoroughly. You need to get on the web, go to your bookstore, library, buy an ebook, etc. on the business you are going to start to find out how much it costs to run that type of business and the monthly expenses. The internet is replete with sample business plans and business plan outlines so do your homework before the onset of writing your business plan.
Step 2

Step 2) The next step in writing a business plan is having a VISION for your small business. The vision for your business needs to be crystal clear. For example, will you run a full-range debt collections service or will you only do credit card debt collections? Having a crystal clear vision for your business will lay the groundwork for a successful business venture--you need to have a clear FOCUS and PURPOSE. Again, scower the internet for business plan examples from successful entrepreneurs.
Step 3

Step 3) Write an ANNUAL BUSINESS PLAN divided into 12 monthly business plans. What is your financial projection for September? How did you arrive at that financial projection (it didn't arrive out of thin air I hope). What marketing will you do to achieve that financial projection for that month? These questions all need to be worked out while you write the business plan.
Step 4

Step 4) CATEGORIZE AND SUBCATEGORIZE YOUR EXPENSES. All reputable businesses have the following expenses: business phone, liability insurance, business bank account, marketing expenses, etc. Make sure every dollar that comes in and every dollar that goes out has a corresponding category in your business plan.
Step 5

Step 5) MAKE MODIFICATIONS TO YOUR BUSINESS PLAN. If your marketing objectives haven't hit your financial projections for a period of 3 months, be honest with yourself and your business. Keep your original business plan, comprise a new one, and track the second in comparison to the first. Write monthly PROFORMAS to help you along the way.
Step 6

Step 6) At the of the year, track your REAL NUMBERS IN COMPARISON TO THE PROJECTED NUMBERS of the business plan. Are they close? Are the expenses and financial projections way different? By tracking and evaluating your business plan numbers, you will be able to grow as an entrepreneur.
Step 7

Step 7) I hope this has been a helpful article on how to write a business plan. I've tried to break it down into its essential components. Check out the tips section below for more help.