|
ST-02
The Business Plan SCORE
Chapter 570 |
|
|
|
The Business Plan
|
|
WHY
DO I NEED ONE?
A business plan serves several purposes. (1) It forces you to explore every aspect
of your business and commit them to writing. (2) It enables you to track your
progress as the business proceeds (3) It is information that you will need
often to attract investors, clients, key personnel, etc. (4) It is an
absolute must if you seek financing. HOW
DO I WRITE ONE?
There are many aids available... Books, computer programs, SCORE, college
seminars, professionals, etc. which will help... But remember, you should
write the plan yourself(s), and use the plan you write. WHAT'S
IN A BUSINESS PLAN?
.....EVERYTHING! Yes, everything there is to know concerning your business,
its past, its present, and its future should be available in your plan BUT!
It can not be so long and wordy that someone can not go through it in a very
short time. HOW
CAN THIS BE DONE? ......Your plan should be well done,
preferably in a binder, with dividers for each section. The entire plan
should be separated into two major sections, THE PLAN and EXHIBITS. The PLAN
section should then be divided into sections dealing with different aspects
of the business as follows. OBJECTIVE A short
paragraph or two which describes exactly what you perceive your business to
be. It is much like a mission statement. HISTORY This section
should contain the name of the business. If it is a fictitious name that
needs to be registered, the registration proof should be included in the
exhibit section and referenced in the plan. i.e.
Fictitious name registered (SEE EXHIBIT A). The history section should
include, addresses, legal structure, owners names, partners, officers,
various locations, etc. (all supported by exhibits when applicable). THE PRODUCT In many
cases this might be titled the service. All products and services contain
three major factors. What it is. How it is made or performed. What steps are
taken to assure its quality. THE MARKET You should
indicate what you project as the geographic limits of your market.
(Townships, cities, states, regions or even country.) You should provide as
many demographics as possible. THE MANAGEMENT Since many
small business are managed by one person this is a difficult section, but it
is probably the most important section in the eyes of the SBA. There comes a
time, as every business grows, that the business is in danger of getting out
of hand. A terrific carpenter does not necessarily make a good business
person because he must concentrate too much of his time and effort to his trade
and other aspects like bookkeeping, estimating, scheduling, employee affairs,
taxes, billing, collections, etc. begin to suffer and cause irreparable harm
to the business and eventual failure. THE FINANCE It should contain copies
of the following: (1) Personal
financial statements (2) The latest financial statement for the business. (3)
A profit and loss statement for the business. (4) The last three years of
your personal tax returns (5) The last three years of tax returns for
the business. (6) The financial needs of the business for the next three
years. And (7) The most important document, a cash flow projection. CONTINGENCIES What will happen in the event of a disastrous fire or theft? (b) What happens if you get an extended illness? (c) can you be sued for general liability? Product liability? Error of omission? (b) Are your records kept safe? (e) What happens if your Key employee leaves? You should be able to answer these and other questions about events that cause irreparable harm to the business. Some Prerequisites for Success in Business Most important to any person in business - particularly people who are planning to be entrepreneurs - is the development of the following abilities and activities
A. Know where you are going by establishing your goals - write them down in advance. B. Develop the ability to plan. The planning function is the foundation of management. C. Develop the ability to communicate. You must be able to express yourself - orally and in writing - in a relevant, clear, interesting and believable manner. D. Maintain a positive attitude toward yourself, and others. E. Be persistent and determined. F. Follow through in a timely manner. G. Study the functions of management: planning, organizing, leading, controlling - and coordinating. H. Prepare yourself for the future -- NOW |
|
