Learn Writing Business Plan Basics- For Building Your Business

Learn Writing Business Plan Basics - There are 2 important incentives to consider writing a business plan. Consider this as the first...Do you need to convince a lender or a potential investor you and your business are worthy of lending money to?..The second is to develop a good marketing plan.

To get started right, conduct preliminary research: Get to know your competition. Learn how they're marketing and selling products, services and their business. Writing a business plan is a whole lot easier, when you've got this information in hand, before you start.

That said, here's a simple approach to writing a business plan.

Use a Free Business Plan Template. You can download a free business plan template.(Be sure to go to the resource box and click the link to get yours.) Review it and begin by doing some simple research.

Contrary to popular belief, writing a business plan doesn't have to mean you spend weeks and weeks. Keep your reason for writing a business plan close in mind as you begin to compile your information and research data. Keep it simple, and include these basics.

1. A Thorough Description of your Business - What you do, what products you sell
2. Your Marketing Approach- How will you sell your Business, Products or Services
3. Competition- Who is your competition?
4. You Operating Procedures - Describe your approach to business
5. Insurance- Make sure you are covered for liability
6. Financial Information should include: A 3-Year Proforma (Projections of earnings and expenses), A Balance sheet, A List of Your Equipment, A Break-even Analysis
7. Your Resume
re you writing a business plan to present to a banker?...Or will you use it to raise money from an investor. If so, you'll want to create a compelling reason for someone to invest in you, your ideas and your business.

Bear in mind, they will be looking for how much of your own time and money you've already invested before trying to find outside funding.

A banker is going to look for ways your business can pay back the money you're borrowing. Writing a business plan for a banker should be done to sell him on your ability to generate enough cash flow to pay bills and cover expenses, and still have enough money left to pay your debt service. An investor is looking at how much money he'll be able to make in return for his investment.

One very important piece of your business plan most new business owners overlook is how you project sales and profits. You've got to show your potential investment partners (the banker, private investors,etc.) your cash flow. (Remember this: Cash flow and profits are two different things.) Cash flow pays your expenses...profits are what's left over after you've paid your bills. Your banker will be looking at cash flow, investors will be looking for profits.

Be Thorough...Be Convincing...But be sure you put some of your own money into the picture. Ask yourself, why should they take a riskon you, if you haven't...Think about it. They will. It's good advice for you to consider at least a 10% investment, however, 25% is much better and 50% will likely get you a lot further in your quest.

Writing a business plan can be a fun and exciting way to start your business.Look at it as a way to discover more about your chosen business, competition and marketing opportunities.You're sure to find some surprises, including opportunities you never even thought about before. Perhaps you'll find new ways to sell your products, fun ways to market, or even new and different products. Using a business plan template can ease your task.

Writing Business Plan Basics...Want to learn more? Find free business plan templates when you click on the links in the resource box.




Experts helping entrepreneurs, become lone eagles ~ Free business planning tools and resources.Download your free home based business plan template now.