First Step Marketing

Every business needs a business plan. As a matter of fact, even companies that have been around for a while and have never bothered to write one could benefit from having one.

A business plan is a road map, a blueprint that spells out the specifics of how you plan to grow your fledgling company. It involves you stating on paper what you’re going to do, how you’re going to do it, and the time frame you plan to accomplish it in.

Though a business plan does not have to be a massively lengthy document, it does need to contain enough detail to answer the questions that a potential investor would likely ask.

But by no means should you refrain from writing a business plan if you aren’t pursuing outside investors. Even if you’re the only person ever to read the contents of your business plan, it will provide a yardstick that you can use to measure your progress, keep you on track with your goals and budget, provide you with a history of the founding of your business, and make it possible for you to follow a time line and project history.

After you write the first draft of your business plan, set it aside for about a week. During that time, keep a notebook handy to jot down every idea—large and small—that comes to mind about your business. Then use this information to fill in the blanks in your business plan or add details where you haven’t fleshed out a topic.

The following are the very basic points that are a necessary part of every business plan.

Front Matter. A cover sheet, a statement of purpose (that is, what you hope to accomplish with your business), and a table of contents.

About the Business. What product(s) or service (s) will the business provide to customers? Who is your target market? Where will the business be located? Who is the competition? What about the staff you plan to hire?

Financial Data. Month-by-month income and cash flow projections for the upcoming year. If you are purchasing an existing business, the financial records from the previous twelve-month period, plus annual revenue streams and expense reports should be included for the previous two-to-five years of the business’s operation.

Supporting Documents. These should include all the records that prove the viability of the business and vouch for your character. Résumés of the founder(s), a credit report, letters of reference from past business colleagues, press clips touting previous business successes, and anything that you feel will help the reader get a good idea of what you plan to do with the business and why you’re well-suited for the job.

If you are still resisting the idea of writing down all the odd tidbits and visions that are floating around in your head, probably because some evil-spirited high school English teacher was mildly entertained by the thought of you ever writing a coherent sentence, take heart in this:

Writing is a funny thing. Though most of us fight it, even professional writers, those early-grade-school experiences when our knuckles got rapped with a ruler for using the “wrong” word are more potent than we would like to acknowledge. You should attempt to put your hesitations aside, however, because the act of putting pen to paper—or fingers to keyboard—can reveal much more than you realize. You’ve seen it happen before: you begin to write a letter to a friend, intending only to ask a single question, and before you know it you’ve filled eight single-spaced pages with more questions, news, stories, and memories. The same holds true for your business plan: as you write, you will think of other ideas and projects and tasks that might not have floated up otherwise.

And remember it doesn’t have to be fancy. Just write it down!