What is a Business Plan and what is it used for?
These are the bare bones of the business plan. With this you will have a clear idea of where your business is headed before you take your first steps. It can be used to keep yourself on track, to present to potential partners or investors, to ask for loans or credit lines etc.
Please answer any questions that are asked here on a separate document or sheet of paper for yourself. This will reveal any problems or roadblocks that you did not see but will have to address immediately or eventually. If you do not understand how to answer a question just leave a comment.
What does a business plan do?
- Makes you visualize your business goals.
- Gives you a roadmap of where you are going.
- Helps you build strategies for the success of the business.
- Helps you envision the future of the business.
- Helps you find potential problems.
- Helps you to structure and organize.
- Helps you to see the actual value of your business.
- Makes you look serious when presenting to potential partners or investors.
Business Description:
Here you will be describing what your business is all about.
- What type of business are you starting? (e.g. electronics store, baby clothing store, cell phone case store etc.)
- Where will the business be located? Will it be a Storefront, Office, Home Based, Online Website, Warehouse etc.
- What type of business entity will you be operating under? Will you be operating as a C or S Corporation, LLC, Non Profit, Sole Proprietorship, Partnership?
- Do you own any Proprietary Content? Does your business own any Copyrights, Trademarks, Patents, Proprietary Software etc.?
- Mission Statement: What do you plan on accomplishing with this company? Personal and business goals.
Marketing Plan:
Here you will list how you plan on selling your products or services.
- What will you be selling? Products or Services?
- Who is your Target Market?
- Describe your perfect customer in detail. What is the age of people buying these products or services? Where are they located? What zip code are they concentrated in? etc.
- Where do customers go to buy that product or service? Online, Storefront, Brochures etc.
- What kind of customer already buys the products or services you are selling?
- Who is already selling these products or services? Why are customers buying from them? Who will be your competition and what are they doing right?
- How will you reach your target market? Will you use mail outs, face to face, flyers, banners, paid online advertising, affiliate advertising, social media advertising, video advertising, radio, TV, email list etc.
- What is your budget to market to the target customer?
- How much does it costs to execute your marketing plan?
Finances of the Business:
This will show the worth of the company at any given time.
Balance Sheet:
- Business assets: What does your business own? Machinery, Vehicles, Real Estate, Land, Contracts, Proprietary Content, Operating Systems etc.
- Business Liabilities: How much debt does your company have?
- How much in salaries/wages is owed to employees?
- How much in income taxes will you have to pay?
- Does the business have any lawsuits pending?
- Does the business have any long term holding investments or unearned revenues?
Income Statement: Profit and Loss Statement:
- What are your revenues? In which ways are you earning money?
- What are your losses? Where are you losing money? How are you losing money?
Cash Flow Projection:
A forecast(quarterly, semi annually, annually) of what the business is expected to earn over a Defined period of time.
- How much will the business be earning over this defined period of time?
- How did you come to this conclusion?
- What can you provide that will support your projection?
Executive Profiles:
Profiles of anyone who will be key in the business being a success. Each profile should have Education History, Professional Background, Skills, Training, Specialized Knowledge etc.
- Will you be the one running the business? Who else is needed?
- Who are your partners?
- Will you have Lawyers, Tax Professionals?
- What professionals will be needed for this business? e.g. engineer, planner, lawyer, architect, software developer etc.
- Will you need to outsource any crucial work done for the business and who will be doing it?
Future of the Business:
Here you will list what the end goal of the business.
- What do you plan on accomplishing with this company? Personal and business goals.
- How do you envision the company's future?
- Do you plan on selling this business in the future? For how much?
- Do you plan on Franchising this business?
- Will this be a private or public business?
- Will someone inherit this business?
You should always have a confidentiality statement or non disclosure agreement when sharing your business plan so that your ideas are protected.
These are just the bare bones of the business plan. You will add and take away as you go through your business road. Some will ask to add to your business plans(e.g. A lender asking for more detailed financial info on your business) You will run into obstacles and roadblocks but by having a business plan you can always get back on track.
Additional Resources by #AllBusiness
How do you choose your Business Name? We covered this in this Blog: https://steemit.com/business/@allbusiness/business-101-top-3-websited-to-visit-to-limit-legal-troubles
What are a company’s Articles of Incorporation/Organization?
https://steemit.com/business/@allbusiness/what-are-a-companys-articles-of-incorporation-organization#comments
How do I get and Employer ID number for my business? Here's how.
https://steemit.com/business/@allbusiness/how-do-i-get-an-employer-id-number-ein-for-my-business-here-s-how
So what is next? What will the AllBusiness account cover?
How do I write a business plan?
How do I get a Business license?
How do I get an Employer Identification Number?
How do I get a Sellers PErmit?
How do I get a Corporate/Company Bank Account?
How do you establish Business/Corporate Credit?
What is a FICO Score?
What is a PAYDEX Score?
Does your business require any zoning permits?
Will you be running the business from home?
What kind of Trade Lines should you set up?
What are Net 30/90 Accounts?
What is Revolving Credit?
What is a DUNS Number?
What is a Business Identification Number(BIN)?
What is a Secured Credit Card?
What is an Unsecured credit Card?
What is a Certificate of Deposit?
What is a Franchise?
What is Branding?
What is Proprietary Content?
We will cover these topics on this Account so please Follow and check back in with us for new content on these topics.
If you have any questions please leave it in the comments section.
If you have any suggestions for future business related posts please leave a comment in the comments section.
Thank you and a have a great day.