How To Write A Business Plan

This is a simple but effective guide on how to write a business plan The following outline of a typical business plan will give you an insight into what is generally required You can vary it to suit your specific business profile Breaking down the plan into several components helps make drafting it a more manageable task

A business plan can be broken down into four parts:

Introduction

Marketing

Financial Management

Operations

Outlined below are the four basic segments that go to form a typical business plan:

Introduction:

Give a detailed description of the business and its goals

Discuss the ownership of the business and the legal structure

List the skills and experience you bring to the business

Discuss the advantages you and your business have over your competitors

Marketing:

Discuss the products or services offered

Identify the customer demand for your product or service

Identify your market, its size and locations

Explain how your product or service will be advertised and marketed

Explain the pricing strategy

Financial Management:

Explain your source and the amount of initial equity capital

Develop a monthly operating budget for the first year

Develop an expected return on investment and monthly cash flow for the first year

Provide projected income statements balance sheets for a two year period

Discuss your break-even point

Explain your personal balance sheet and method of compensation

Discuss who will maintain your accounting records and how they will be kept

Provide “what if” statements that address alternative approaches to any problem that may develop

Operations:

Explain how the business will be managed on a day-to-day basis

Discuss hiring and personnel procedures

Discuss insurance, lease or rent agreements, and issues pertinent to your business

Account for the equipment necessary to produce your products or services

Account for production and delivery of products and services

You may freely reprint this article provided the author’s biography remains intact:

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://wwwdirectonlineloanscouk website

Tags | balance, equity, financial, introduction, investment, manageable, management, operating, plan, pricing, procedures, statements, strategy, structure