Don't watch the clock, do what it does. Keep Going. Sam Levenson
Idea Transcript
Steps to Starting a Business Plan Think of the business plan as answers to a few basic and logical questions about a business. Imagine that someone is coming to see you to explain a new business idea. What questions would you ask in order to fully understand that new idea? Those questions are surprisingly few. They are simple, and they should flow in a logical order: 1. What is your business? (Give a basic description) 2. Who will you sell to? (Tell about your customers) 3. How much will you sell? (Tell who, and what your market is) 4. Who is the competition? (Tell about the other businesses competing for the same market) 5. How much money do you need? (List start up costs and operating costs) 6. How much profit will you make? (Explain why this is a feasible business idea) Make sure that a one-year financial projection is included. If the business is already existing provide a financial statement for the past 2 years. 7. Are you a good manager? (Explain you qualifications, experience, what you have to offer and the business)
Once you have received satisfactory answers to the above eight basic questions, you will have a better understanding of your new business idea.
Business Plan Checklist HAVE YOU INCLUDED THE FOLLOWING?
An introductory letter
A title page
A summary statement including a brief description of your business
Background Information - Legal status of your firm - Start-up costs of your business A description of the industry - principal characteristics - trends - players - barriers
A description of your product or service - assessment of strengths/weaknesses - patents, trademarks, copyright protection - technology that you will use
A description of your management team - Who are they, qualifications etc.
Marketing Plan - Assessment of total market area - Assessment of competition - pricing policy - distribution policy - Who is your target market? - Advertising/promotional plan
Description of land, buildings and equipment - location - land and equipment requirements
Operating Plan - work flow - inventory control - supplies and material - suppliers
Personal References - from banks, professionals, and/or former employers
Financial Plan - capital requirements - cash flow budgets - pro forma balance sheet - projected income statements - break even chart - sources of financing - personal balance sheet including personal net worth
Risk and problems associated with your business and how to resolve them - worst case scenarios