In today's market, a business plan is one of the most critical documents in the development of your business. How can you expect to communicate your goals, or to gain investor funding without presenting a detailed business plan. If you were an investor looking to invest millions, would you move forward without first seeing a business plan? I doubt it!

As an entrepreneur, I have learned this the hard way. Quite a few years ago with my first business in Arizona, I had a great idea and the drive but no business plan. We just moved forward and six months into the business realized we had a lot of problems. It was not that we did not do our initial research, resources in place, or even a good product. We just had no idea if we were doing good or not. This is because we had NO goals. What made it worse is we had a potential investor interested in our company; however, because we did not have a business plan to share with him it was a major red flag.

Regardless of the size of your business, having a business plan provides you with the following: 1)Set specific goals and determine how to measure them over the development of your business 2)Address upfront known obstacles and strategies for dealing with future obstacles 3)Cash flow and break-even requirements 4)Ability to focus and maximize resources when considering business decisions

Before you begin writing your business plan, consider four important questions: 1)Where will you get the start up and ongoing capital start your business? 2)What service or product does your business provide and what needs does it fill in the marketplace? 3)Who are the potential customers for your product or service and why will they purchase it from you? 4)How will you reach or market to your potential customers?

Elements to Include in a Good Business Plan: 1) Cover sheet 2) Statement of purpose 3) Table of contents a. The Business i. Description of business ii. Marketing iii. Competition iv. Operating procedures v. Personnel vi. Business insurance

b. Financial Data i. Loan applications ii. Capital equipment and supply list iii. Balance sheet iv. Breakeven analysis v. Pro-forma income projections (profit & loss statements) 3) Three-year summary 4) Detail by month, first year 5) Detail by quarters, second and third years 6) Assumptions upon which projections were based i. Pro-forma cash flow b. Supporting Documents 7) Tax returns of principals for last three years Personal financial statement (all banks have these forms) 8) For franchised businesses, a copy of franchise contract and all supporting documents provided by the franchisor 9) Copy of proposed lease or purchase agreement for building space 10) Copy of licenses and other legal documents 11) Copy of resumes of all principals 12) Copies of letters of intent from suppliers, etc

Unless you have developed a business plan before, after reading this article you might need some additional help. Fortunately, there are many resources available. There are lots of books, software programs, and Websites that'll walk you through each of the steps involved. We got you started; now it's up to you to make those business dreams come true.

© Jay Feitlinger Amass Magazine

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