How to Write a Business Plan
• Write a winning proposal
• Prepare cash flow and profit & loss forecasts Plan
Are you concerned about whether you can put together a first-rate business plan? How to Write a Business Plan contains detailed forms and step-by-step instructions designed to help you prepare a well thought-out, well-organized plan.
Coupled with your positive energy and will to succeed, you’ll be able to design a business plan and loan package that you will be proud to show to the loan officer at your bank, the Small Business Administration, or your Uncle Harry.
After working with hundreds of business owners, I have observed an almost universal truth about business planning: Writing a plan is a journey through the mind of one person. Even in partnerships and corporations, usually one person has the vision and energy to take an idea and turn it into a business by writing a business plan.
For that reason, I have addressed this book to the business owner as a single individual rather than a husband-and-wife team, group, committee, partnership, or corporation.
And you’ll find that the same financial and analytical tools necessary to convince potential lenders and investors that your business idea is sound can also help you decide whether your idea is the right business for you.
What Kind of Plan Do You Need?
You can use How to Write a Business Plan to write whatever type of plan best suits your needs:
• Complete business plan. A complete business plan is especially helpful for people who are starting a new business. This form of plan is also excellent for convincing prospective backers to support your business.
You’ll be more successful in raising the money you need if you answer all of your potential backers’ questions.
A complete plan should include the following elements:
Title Page,
Plan Summary,
Table of Contents,
Problem Statement,
Business Description,
Business Accomplishments,
Marketing Plan,
Sales Revenue Forecast,
Profit and Loss Forecast,
Capital Spending Plan,
Cash Flow Forecast,
Future Trends,
Risks Facing Your Business,
Personnel Plan, Business Personality,
Staffing Schedule, Job Descriptions,
Specific Business Goals,
Personal Financial Statement,
Personal Background,
Appendix,
and Supporting Documents.
Quick plan (one-day plan). If you know your business, are familiar with and able to make financial projections, and have done the necessary research, you may be able to create a plan in one day. But understand that a quick plan is a stripped-down version of a business plan. It won’t convince either you or your prospective backers that your business idea is sound. It is appropriate only if your business idea is very simple or someone has already committed to backing your venture.
A stripped-down quick plan has these few components:
Title Page,
Plan Summary,
Table of Contents,
Problem Statement,
Business Description,
Business Accomplishments,
Sales
Revenue Forecast,
Profit and Loss Forecast,
Capital Spending Plan, Cash Flow Forecast,
Appendix, and Supporting Documents.
• Customized plan. You can start with a quick plan and add components from the complete business plan to suit your needs. When deciding what to include and what to exclude, ask yourself: Which of my statements are the strongest?
Which statements do my backers want to see?
Note that the appendixes contain blank forms as well as business plans for a small service business, a manufacturing business, and a project development. All the forms (except for the Loan Interest Calculation Chart) and business plans are included on the CD-ROM located at the back of the book.
The forms—for calculating sales forecasts, personal financial information, profit and loss forecasts, and cash flow forecasts—are provided in Microsoft Excel spreadsheet format and include helpful formulas for making calculations. The “CD” icon appears whenever forms or business plans are reproduced on the CD. (Note: If a series of #### symbols appear in a box in a spreadsheet, that means that you will need to widen the column in order to display the numbers.)
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