Crafting a Business Plan

By Staff Writer Everything you've heard, from Entrepreneurship 101 onward, is that once you have a business, you need a business plan. Now, you've started your small business, but you still don't have a plan. To risk once again repeating your professors' and peers' words, you need to get started. But where, and, for that matter, why?

Why Write a Business Plan: Its Importance to Your Company
Of course, the first reason that comes to mind is money. Although not all banks require a business plan before giving you the financing you need, having one will set you apart from the many other applicants that simply provide financial statements and then wait for a fomal hearing. A plan will make bankers take you seriously and gauge you as a better risk for their funds.

Venture capitalists, like banks, are also very concerned about the risks they take. If you're seeking investment funding, you will be asked to provide a business plan.

A plan will make bankers take you seriously and gauge you as a better risk for their funds.

Expect them to comb over it carefully, this is their way of screening businesses to find the ones that have greater potential. This is also true for larger corporations, if you'll be looking for contracts.

Even if you won't be seeking outside funding, your business plan is a key factor in your company's success down the road. It serves as a map for where the company needs to go and how it will get there. With it, you can plan for promotion of the company, operational purposes and company goals. Lastly, your business plan offers you a convenient point of reference. As you make progress, you can check back to your plan to make sure you're headed in the right direction and refresh yourself on what comes next.

Still not convinced that you need a plan? Consider this: A recent survey found that business-planning companies have 63% higher revenue growth and 100% more profit!

Getting Down to Business: Writing the Plan
You deal with the books every day and have had a vision for your business from the beginning, but all the sections and details of an empty business plan outline seem overwhelming. What comes first? The best way to begin is to start small. Describe your business, your product, and what market you are targeting. These basic notes don't have to be

Consider this: A recent survey found that business-planning companies have 63% higher revenue growth and 100% more profit!

complete; write the sections that come easily to you and come back to the more complicated ones later. Determine from the outset your plan objective and your intended audience. If you're writing the business plan solely for internal purposes (i.e., planning your strategy, setting the course for growth), you can omit some of the sections required by banks. Additionally, you'll have a different plan focus depending on whether or not you're seeking debt financing or equity investment.



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