How to Create a Good Business Plan

A good business plan should capture business objectives, description, marketing plans and financial objectives.

With lots of new business ideas swirling in your head, the best way to document them is to create a business plan. Every good business plan captures the basics: business goals, summary of business products and services, profitability potential, competitor information, customer demographics and targets, marketing strategies, funding sources, and future plans. The business plan is a good source of reference for a business owner and can serve as a supporting document when applying for loans, grants and outside funding.

Instructions

1. Visit websites that contain sample or template business plans or free downloadable software. You can use these as a model for creating a good business plan as the subjects you'll want to address have already been listed, waiting for you to plug in your business information.

2. Write a mission statement, business objectives and a full description of your business. List specific statements relating what you want to create and develop. Start objectives with "to," as in your objective is, "To develop a dog-walking business in the York, Pennsylvania vicinity."

3. Write a full description of your products and services so that anyone in any industry can understand them. Translate technical terms to lay language and clearly state what your business sells or offers so there is no misunderstanding. Keep language succinct and simple.

4. Complete a thorough market analysis and include it in your business plan. Every good business plan includes information about where you plan to market and sell your business and to what population. Include specifics about how many customers you plan to obtain, information about competitors, and marketing and sales strategies.

5. Add a section of your business plan on finances. List financial assumptions on profit and loss, projected cash flow and a balance sheet with assets, liabilities, earnings, capital and net worth. This information is especially helpful if submitting your business plan to potential lenders.

References

• U.S. Small Business Administration: Write a Business Plan
• B Plans: Free Sample Business Plans