A Quick Outline of Writing a Business Plan

One of the most important aspects of a business plan is your financial statement. Other important aspects include your company's mission statement, the name of your company, an organization plan, a market analysis, a competition evaluation and your company's goals.

The financial section is usually the last section your business plan, and it's the section that will probably determine how marketable your business idea is, and how likely investors will commit themselves to your financial future. The financial statement of any business plan will contain a number of elements. The most important of this section is the income statement, the cash flow projection, and the balance sheet. You'll should also include a brief analysis of all three of these statements.

Your financial statement section should also include expenses that will fall under each of two categories — start-up expenses and operating expenses. Your start-up costs will likely include business registrations, licensing, and permits. It should also include your starting inventory and rent deposits. If applicable, your start-up costs should include the purchase or rental of operating equipment.

Operational costs include expenses such as employee salaries and benefits, rent or mortgage payments, utility payments, purchase of raw materials, office supplies and any maintenance required. These start-up costs will change as the needs of your business change, which is why these costs are often projected in a business plan over a 3 to 5 year time span.

Another section of your business plan should include the scope of the industry your business is part of, and of your business' position within that industry. In this section include approximate sales for your industry in the previous two years, and the size of the existing industry that you want to be a part of.

Other aspects of this section are national and economic trends that affected the industry in the past and present and projections for the future. You'll also include the overall outlook for this industry. In other words, determine the likelihood you'll success in this industry, and the impact your business will make.

Your business plan should include details regarding the demographics of the people who will likely purchase from your business. Demographics of a group include the age, sex, lifestyle, income level, and education. You should also include what motivates these individuals, how they spend their spare time, and what they do to earn a living.

Also try to find out what types of equipment these people own that is related to what your company sells. For example, if you sell memory cards for digital cameras, you may want to know how many people in an area have purchased digital cameras. This information can be obtained by conducting surveys, or from statistics from past market surveys completed.

When you do research regarding the people who may potential customers of your company, you'll have documented proof that your business has earning potential. This will be of great value when searching for funding for your business, and it will also assure anyone involved in your business of an income return any from their investment. Also include any other pertinent research and analysis you may have discovered while developing your business plan.

To help ensure a successful business, your plan should include an evaluation of your competition. This will help you overcome any marketing barriers while starting and running your business and also indicate how you're going to promote your products or services. This section of your business plan should also outline the benefits of each product or service you'll be selling.

Other sections of your business plan could include your operation and management goals and indicate how you're going to organize the structure of your business. These additional sections will briefly explain the various legal aspects of your business, and describe your business' physical location. Include any additional information you think well help convince other professionals that your plan is a workable one.

If the task of creating and organizing the contents of your business plan seems a bit overwhelming, you can always consult a professional to help you out. Either hire a professional consultant or seek the help of non-profit business organizations in your area. You can also purchase software that will help you organize and write your business plan.

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