Create an Effective Business Plan

Objectives Research your business plan. Organize your business plan.

Research the Business Plan Pulling together the information you will need to write your business plan involves researching all aspects of your business.

Print Resources Books on: Entrepreneurship Marketing Financing Hiring and managing a staff Purchasing a business Operating a franchise Some books will contain sample business plans.

Magazines may also prove helpful, especially magazines devoted to small business ownership and the industry you’ll be competing in. Government documents, including publications issued by the Small Business Administration (SBA) The SBA district office nearest you will have publications to help you complete your business plan

Online Resources Much of the information you can find in print resources is also available on the Internet. Many magazine articles, and even some books, can be found on the Internet.

People Resources People from many organizations can help you with your business plan. Counselors from Small Business Development Centers provide free one-on-one assistance in developing a business plan Workshops are also provided on topics to help develop your plan

Service Corps of Retired Executives (SCORE)- 12,000+ retired executives volunteer their time to help younger entrepreneurs Provide free confidential advice Can set up a meeting or work online

Additional Resources Many Internet sites provide information on writing business plans, including several sites that take you through the business plan step by step. Some allow you to ask questions Trade association- organizations that promote certain types of businesses

Checkpoint>> What resources are available to help you develop your business plan?

Put Your Business Plan Together Your business plan is your best opportunity to let other people know what you want to do with your company. Allows you to convince them your idea is sound and you have the talent and resources for your business to be successful To make the best of this opportunity, you will want to create an attractive document that is neat, well organized, and inviting to read. Handwritten business plans are not acceptable

Introductory Elements Every business plan should begin with a cover letter, a title page, a table of contents, a statement of purpose, and an executive summary.

Cover Letter Cover letter- provides more information about a document or set of documents Should include: Your name Business name Your address and phone number Brief description of business and its potential for success

Title Page Should include: Name of company Date Owner of company Title of owner Address and phone number of company

Table of Contents Table of contents- listing of material included in a publication which shows the reader what each page covers

Statement of Purpose Statement of purpose –briefly describes why you are asking for a loan and what you plan to do with the money

Executive Summary Executive summary- short restatement of a report which captures the interest of its readers Should be no longer than one or two pages Should: Describe your business concept and communicate what is unique about your idea

Include your projects for sales, costs, and profits Identify your needs – inventory, land, building, equipment, etc. State the amount you are interested in borrowing Although the executive summary appears before the content of the business plan, it should be written after the business plan is completed

Main Body of Your Plan Should include: history and background of your idea goals and objectives for your company products or services you will offer form of ownership management and staffing marketing current and projected financial statements

Appendix Includes any supporting evidence that was not included in the body of the plan Examples of what may be included in the appendices: your resume personal financial statements income tax returns copies of any large sales contracts you have already negotiated letters of recommendation legal documents

Checkpoint>> What is the purpose of each part of a business plan?

Assignment THINK CRITICALLY #1-2