A Business Plan is Essential for Future Success

When embarking on any new venture, it is essential to have a well crafted plan to be successful.  It's no different when you're starting a new business or working on revitalizing an existing one.  This living document generally projects 3 to 5 years ahead and outlines the route your business will take to reach your goals.  There are generally nine areas that need to be covered in your plan in order to have a clear picture of where you want to be in the future.

Executive Summary - This provides a snapshot of your business as a whole including your company profile and goals.  The Executive Summary will be your first impression for investors and company participants, so spend some time really thinking about where your business is, where you want to take it, and why your idea will be successful.  Some good information to include is:

• Mission statement
• Company information
• Growth highlights
• Products and services
• Financial information
• Information on target market
• Summary of future plans

Company Description - Here is where you give more detailed information on what you do, what differentiates your business for others, and the markets your business aims to serve.  Make sure and describe the marketplace needs that you are trying to satisfy and how your products or services are going to meet those needs.  Also highlight any competitive advantages that your business has such as location, expert personnel, or value of offerings.

Market Analysis - Knowing who your customers are is vitally important when starting a business.  This is the section where you highlight your research about your industry, market, and competitors.  It should emphasize your knowledge and research about who you are going to target and how your business will deliver more successfully than your competitors.

Organization & Management - This section should include your company's organizational structure, ownership information, profiles of your management team, and qualifications of your board of directors (if applicable).  A simple but effective way to lay out your structure is to use an organizational chart with narrative information.  Ownership information should be as detailed as possible, even if you are a one-person operation.

Service or Product Line -  You need to tell the story of what you sell and how it benefits your customer in this section of your plan.  You should talk about how your product or service is going to meet a specific customer's needs, any advantages your offering has over your competitor's, and what stage of development your offering is in.

Marketing & Sales - Here is where you lay out how you plan to gain customers and how you plan to sell your products and services to those customers.  The overall marketing plan should include:

• Strategies for - market penetration, growth, channels of distribution, and communication

The overall sales plan should include:

• A sales force strategy and planned sales activities

Funding Request - If your company is seeking investment or bank funding, this section should be included in your plan.  Include specific requests for funding and the plan for how that money is to be distributed in your business.  Having a debt repayment plan in the funding request will help assure potential investors that you have a long-term plan for success.

Financial Projections - This section should be developed after you've analyzed your market and set clear objectives for your business.  Historical (if available) and prospective financial data will need to be included in this section.  If you are a start-up, take a look at information for similar businesses as a base for your projections.  Think critically about what your overhead and selling price will be.

Appendix - An appendix is optional, but it is a good place to include backing material to support the statements and projections for your future plans.  Possible things to include are:

• Resumes
• Credit histories
• Product pictures
• Letters of reference
• Details of market studies
• Licenses, permits, and patents
• Copies of leases
• Contracts
• List of business consultants

A successful business plan is not a static document that gets written once then is never consulted again.  Your business plan should be reviewed and updated no less than once a year.  It will serve as a check-up on where you are compared to where you wanted to be.

If you've never written a business plan before, there are many templates available in programs such as Word or on-line.  For more information on how to make your plan stand out, check out the website of the Small Business Administration.