How to Produce a Business Plan

A business plan is a road map to your business' future.

A business plan is a road map to your business' future. The plan also serves as a communication tool for financing proposals. While each business needs an exclusive plan, the basic elements are the same.

Instructions

1. Write a mission statement for your business. This can be several sentences long or only a few words that explain the company's No. 1 focal point.

2. Write a vision statement to include in the business plan. Address the company's philosophies on growth and ethics.

3. Create a list of the company's goals and objectives, with a projected timeline for completion. Discuss previous goals the business has met.

4. Write a few paragraphs describing the company's history to include in the business plan. Discuss the ownership structure and how and why the company was created.

5. Describe in the business plan every product or service your company offers. List why each one benefits consumers, who your target audience is and how your products contend with their competition.

6. List the methods you plan to use to produce sales by advertising, promotions and public relations and the cost associated with each.

7. Write a financial section in the business plan, showing that you are able to meet all financial commitments and maintain a positive cash-flow balance. Include a balance sheet showing your cash, expenses, assets and liabilities. Also include a break-even analysis, which is based on your ability to meet costs, and a sales forecast, which is based on market conditions, the value of your business inventory and the resources at your disposal to distribute goods.

Tips & Warnings

• Keep the business plan brief and to the point, avoiding technical jargon.

• Include images of your products or services to give readers a visual guide.

• Provide graphs showing market trends that affect your business. These will give your analysis added weight.

References

• Bplans.com: How to Write a Business Plan