How to Build a Free Business Plan

Use your business plan to get funding.

Without a business plan, it would be difficult to find funding, discover weaknesses and keep track of the growth of your business: all needed to maintain a profitable business. According to VCgate, a business plan is an essential tool when receiving capital from investors and government loans. Investors and banks take a risk in giving any business funding. With a thorough business plan, you are essentially proving that your business will be worth the trouble and has the potential to become successful. Main pages of a business plan include the executive summary, development plan, marketing plan and financial plan.

Things You'll Need

• Computer
• Paper
• Pen
• Financial statements

Instructions

1. Brainstorm the objectives, goals and potential of your business. Determine how much money you are willing to invest, what your business will accomplish, how much money you plan to make, what marketing methods you plan to use and the potential your business has of succeeding. Decide whether the main purpose of your business plan is to get funding or analyze your business' progress.

2. Create a cover page and table of contents for your business plan. Make sure your cover page includes the business name, logo, phone number, address and date of business plan creation. Number the table of contents with Roman numerals, subdividing each section with alphabet letters. According to Busplan.cc, format the business plan starting with the cover page, executive summary, table of contents, the business, business operations, financial planning tools, summary and supporting documentation.

3. Make the executive summary and introduce your company. The executive summary should not be longer than two pages and should encourage viewers to read your business plan, according to Credit Sunrise. The executive summary is basically an overview of your business plan. Include the business niche, plans of growth, objectives, history, funding requirements and how funding will be used.

4. Describe key aspects of your company in the business section and break the section up into parts. Start with the business description and end with the business objectives, discussing the vision statement and mission statement in between. According to "Entrepreneur," the business description normally begins with information about the industry. List new products and trends within your business industry and back up all observations with reliable data. Outline the purpose and goals of your business in the vision statement. Describe the ideals and history of your company in a short mission statement. End the business section with business objectives that explain the goals and future course for your business. Describe how your business is different from other companies and how it will excel.

5. Break the business operations section into the following parts: Marketing, competitive analysis, legal structure and management. Describe the promotional methods, products, prices and location your business will be using on the marketing page. Analyze your competition in the competitive analysis by listing at least five competing companies, describing each company and explaining your business strengths. Determine whether your business is a corporation, sole proprietorship or partnership on the legal structure page. List the names and duties of any employees and the business owner as well. Cover the personnel history, work experience, salaries and responsibilities in the management part to end the business operations section.

6. Plan out your business financially in the financial planning section of the business plan. List your financial objectives and be as specific as possible. Calculate your cash flow and monthly living expenses by recording the costs to run the business and how much your business will make.

7. Summarize your business and keep your writing clear, concise and positive. Conclude the business plan with supporting documents, like your resume, two or three letters of recommendation from other people and any special achievements or rewards.

References

• VCgate: The Importance of a Business Plan
• Busplan.cc: Writing a Business Plan
• Credit Sunrise: Executive Summary
• Entrepreneur: Business Plans

Resources

• Small Business Administration: Manage Your Business from Start to Finish