| A business plan doesn't have to include fancy charts | | | | purchase from them, and the payment terms you'll |
| or perfect sentences to be effective. It can be as | | | | set up with them and your customers or clients. |
| simple as something drawn up on the back of a | | | | 5. Start-up costs |
| cocktail napkin or as complex as a 100-page | | | | Show much it will take to get the business off the |
| document. | | | | ground and to reach breakeven. Don't merely quote |
| In either case, the business plan should contain the | | | | a big number, break it down into smaller categories |
| following nine basic components. | | | | of expenses, and detail how you'll come up with that |
| 1. A brief description of the business, the industry, | | | | money. |
| and trends within the industry | | | | 6. Cash flow |
| You don't have to conduct hundreds of hours of | | | | Include a simple spreadsheet that shows how money |
| research to come up this. Simply focus on what your | | | | will flow in and out of your business. Project out at |
| business does, what industry it operates in, and what | | | | least one to three years (any further, and the figures |
| the major trends are within that industry that could | | | | tend to be wild guesses). |
| positively or negatively impact your business. | | | | 7. A brief description of what makes your product or |
| 2. A mission statement | | | | service unique |
| Short and sweet, this should include something about | | | | Describe what makes your business stand out in the |
| your top products or services, the people or | | | | marketplace. Demonstrate what you offer that |
| businesses you're targeting, and the primary goals | | | | differentiates your product or service from the |
| and values of your business. Here's an example for | | | | competition. |
| an upscale hair salon: At Hair Affair, we offer | | | | 8. An analysis of competitors |
| beautiful hair care and styles for those who work or | | | | Include a short blurb on your top direct competitors, |
| live downtown. When creating a new look or | | | | outline their strengths and weaknesses and show |
| enhancing a familiar one, we are committed to | | | | how you stack up against them. |
| building clients' self-confidence and ensuring their | | | | 9. Marketing plan and strategy |
| satisfaction. | | | | Sketch out the price points you've chosen, the types |
| 3. A bio of the owners, advisors, managers, and/or | | | | of marketing you'll use to connect with potential |
| investors in the company | | | | customers and clients, and your overall strategy for |
| Don't go crazy here. Just include the names of the | | | | bringing in and retaining business. Be as specific as |
| key players and a sentence or two about their skills | | | | you can here. |
| and management experience. Later on, if need be, | | | | That's it! Those are the nine points you need to |
| you can attach résumés to the business | | | | cover to craft a dynamite business plan. |
| plan. | | | | Whether you're starting a business, purchasing a |
| 4. A brief description of the day-to-day operations of | | | | business, or expanding a business, the moment you |
| the company | | | | start to plan, you begin to put structure and form to |
| Describe how work will flow in and out of your | | | | your ideas and dreams. Don't wait to write a plan until |
| business. If applicable, describe the key vendors | | | | a lender, investor or key partner asks for one. Do it |
| suppliers you'll rely on, the products and supplies you'll | | | | today...do it for yourself! |