...Oh... A Brand New Week...

How to make a business plan

Unless you make your living writing business plans, you're probably going to need some help.

Fortunately, online resources for writing a business plan are plentiful. There are many books, software programs, and websites that will walk you through each of the dozens of steps involved.

Even if you hire someone to prepare your business plan, you still have to get all the information together to have an effective plan. You have to be able to convey excitement with substance and with the uniqueness of your business opportunity, start up costs, and qualifications of your management team. Above all, be concise; do not exaggerate.

Of the many parts of a business plan, by far the most important is the executive summary. The executive summary, or business plan summary, is just what it sounds like: a compact version of the big plan. In straightforward prose you should answer the following questions:

• What sort of company is it?
• What's the product/service, and what's special about it?
• Who are the managers?

Write the summary first, and, if you do a good job, you'll generate enough enthusiasm to carry yourself through the rest of the plan. A solid strategic plan delivers the following benefits:

1. You focus your time and energy on activities that are most likely to achieve your goals.
2. You know how to allocate resources.
3. You put a solid strategy in place to set your business apart from the competition.
4. You can communicate your plan to employees, and hold them accountable for results.
5. You can track the results of your efforts and make mid-course corrections to get back on track if you need to.

You can adapt your plan to create a second business plan to raise investment capital or get a business loan.

A sound strategic business plan must cover three areas. If you miss any of these areas, your plan will be incomplete and will not be nearly as powerful as it needs to be.

First, you have to lay a sound strategic foundation. Your strategic foundation:

• Sets out your vision and specific goals for your business
• Describes your target clients, their current and emerging needs, and your target project
• Defines what sets your business apart - or your edge - in your clients' eyes
• Crafts your positioning statement, or irresistible marketing message that will attract desirable new clients to you
• Lists current hurdles that are keeping your from achieving your goals and vision