Step-by-Step Business Plan

A well-written business plan can lead to investors or banks funding your business.

Although no two business plans are alike, a business plan can be crafted by following a basic outline. Putting the document together requires planning, attention to details and organization. If you are seeking funding from a bank or investor, a business plan will allow you to convince others that your business will be profitable. Focus on selling your product or service by using persuasive language and providing a break-down of how you plan to penetrate your market.

Things You'll Need

• Personal computer
• Word processing software
• Spreadsheet software

Instructions

1. Write an executive summary. Discuss you business idea in length and include eight to 10 strong paragraphs. Your paragraphs should focus on and include your company's mission statement, vision for the future, any trends that you have identified, your financing objectives and the amount of money you are seeking. A sample statement in an executive summary might read, "We are committed to growing ABC goods and are seeking a $50,000 start-up capital."

2. Write a company description. Inform your reader of your proposed business location. Include a descriptive overview of your hours of operation and any research you have conducted regarding the type of business you intend on running. Develop four to five strong paragraphs. Here's a sample sentence in a company description: "ABC services and goods is a company that began with a dream to provide quality XXX services to customers. Our proposed location is in one city."

3. Create a management section. Include a short description of your management team. Write a short bio on each employee. Use job descriptions for team members who are not present during the business plan writing phase. The use of a organizational chart is permitted in this section.

4. Write a competition analysis. Research and gather information on similar businesses in your industry and geographic area. Stick to providing data for business that are within a 10-mile radius of your proposed location. Include a descriptive view of the goods and services they provide, and write their address and other contact information. Choose and include a statement on each business that shows obvious differences. Here's a sample sentence, "DEF goods is located in one city, five miles from our prospective location, the company offers ZZZ hours of operation, unlike our business, which offers 24-hour customer phone service." Include five to six competitors.

5. Create a sales and marketing strategy. Inform your readers how you intend to market your goods or services. Choose and include various methods, like radio advertising, television advertising, business cards, word of mouth and customer referral programs. Your strategy should include a brief statement on each marketing method you plan to use. Include at least four marketing strategies.

6. Create a budget spreadsheet. Include all costs associated with your business. Develop a comprehensive list that includes rent, telephones, vehicles, utilities, supplies, payroll, insurance and the cost of marketing. For start-up businesses, it is permitted to estimate. Create another column and include start-up capital as well, or include money you have in the bank.

Tips & Warnings

• Proof-read and spell check the business plan for clarity.

• Include a table of contents so readers can easily navigate your business plan.

• Include an appendix section to place research documents, handouts and statistical data.

• You can include a three to five year financial forecast page. Consider hiring an accountant to help with this.

• Try to refrain from using the word "I" in business plan writing.

References

• University of Arkron: Major Parts in a Business Plan
• Business Plan Master: Writing a Business Plan
• Woman Owned: Parts of a Business Plan

Resources

• Washington State Small Business Development Center: Business Plan Helpful Documents