The Business Plan

Most business advisors recommend that business owners must first have a business plan. Surprisingly, though, there are many small business owners who just jumped in and never bothered to think a business plan through.

What’s In a Business Plan?

What is a business plan, anyway, and why would a business owner need one? Many business people struggle with drafting simple business letters, and even emails, not to mention a document so formal sounding as a business plan.

The business plan has been over-described as being a blueprint of a business and its future. A business plan, in the truest sense of the word, is a technical document that outlines concisely the business’s plans for its operation, success and future. It is a well thought out written rendering of the business architecture. The business plan leads to deeply detailed documents and analysis that is often appropriate for lending institutions and state government in the case of those businesses looking to incorporate or form a limited liability company or a non-profit.

Getting Started

Many experts suggest that the first step leading you into a formal business plan is to simply sit down and organize your thoughts on paper. Put your business into your own words. What is it that you are selling? How and where do you want to sell or market? Who do you see in your mind are your customers? Where do you expect to get the money to do business? Do you have any fears? Once you have these thoughts listed or drawn or jotted on paper you have a much better idea of what exactly needs to be included in a business plan, only a bit more formally presented.

The Technical Document

Like all technical documents, a written business plan should follow a fairly standardized format. There are countless resources available that show a variety of plan outlines. There are even examples of already written business plans that can show you how others have represented their businesses on paper. Remember, business plans are going to be seen by many people, including lenders and possibly government officials and even your business associates.

The general pieces of a business plan are the big chunks typically called Concept, Market, Finance, and Management. Within each of these chunks of information are deeper discussions of your business products and services, organizational structure, descriptions of your daily operations, where you plan to locate, potential customers and clients, customer demographics of your business locale, your potential competitors, and how you plan to finance. Many experts advise a cadre of follow up material and analyses be attached, including an all important “Executive Summary” which is a short, clear synopsis of your business plan.

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