How to Compile a Business Plan
A business plan is the foundation of a business. It is a written document that takes business ideas and creates a plan to turn them into a reality. Compiling a business plan takes preparation and energy, but it is well worth the effort. Taking the time to write a business plan will help establish your goals and the process to implement them.
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Instructions
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Understand the different aspects of a business plan. There are seven parts to a business plan, and it's helpful to understand what they are before you begin pulling together information. The seven parts of a business plan include: the executive summary (overview of the business plan), intended products/services, market/needs analysis (who will use your product and why), organization and management (how your business will be managed and the logistics of buildings, equipment etc.), strategy and implementation (marketing), financial plan (budget), and the appendix.
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Research your intended target audience. Decide who your audience is and then use the library, Internet and City Hall to find out as much about them as possible. What is their average income? What do they spend money on? Where do they live? Why would they need your product or service? Once you have all of this research, you will know whether you need to adjust your target audience or product/service.
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Research financial institutions and grants. Shop around at banks to learn which ones offer the best rates on business loans. Use the Internet to research government and private grants to see if any are applicable to your business.
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Look for a marketing professional or copywriter who can help with your marketing plan. Search online or in the phone book. Many marketing professionals and copywriters give free consultations regarding types of marketing materials that would work for your business and what they would cost.
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Compile financial information. Find out the cost of making your product or buying it wholesale. If you plan to offer a service, make a list of everything you will need to do so and what it will cost. Include the exact dollar amount for everything including the building rent or lease, the equipment, transportation, office supplies etc. Once you have all of the financial information, use it to create a projected annual budget.
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Develop your mission statement and objectives. Take time to think about why you want to run this type of business and write it down in a mission statement. Then write what your objectives are to fulfill that mission.
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Write out the business plan. Use all of the research and information that you have gathered to write the seven parts of the plan. Once you have a draft, revise and edit it thoroughly. Ask several people to read and critique your business plan and make any needed changes prior to submitting it to a bank.
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References
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