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Business Plan Details

There’s no hard and fast rule for developing a business plan. Each business type requires different components. However, here are some of the basics that are included in all business plans:

1. Cover sheet
2. Statement of purpose
3. Table of contents
I. The Business
Â Â Â Â Â Â Â Â Â Â Â Â Â Â A. Description of business
Â Â Â Â Â Â Â Â Â Â Â Â Â Â B. Marketing
Â Â Â Â Â Â Â Â Â Â Â Â Â Â C. Competition
Â Â Â Â Â Â Â Â Â Â Â Â Â Â D. Operating procedures
Â Â Â Â Â Â Â Â Â Â Â Â Â Â E. Personnel
Â Â Â Â Â Â Â Â Â Â Â Â Â Â F. Business insurance

II. Financial Data
Â Â Â Â Â Â Â Â Â Â Â Â Â Â A. Loan applications
Â Â Â Â Â Â Â Â Â Â Â Â Â Â B. Capital equipment and supply list
Â Â Â Â Â Â Â Â Â Â Â Â Â Â C. Balance sheet
Â Â Â Â Â Â Â Â Â Â Â Â Â Â D. Breakeven analysis
Â Â Â Â Â Â Â Â Â Â Â Â Â Â E. Pro-forma income projections (profit & loss statements)
Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Three-year summary
Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Detail by month, first year
Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Detail by quarters, second and third years
Â Â Â Â Â Â Â Â Â Â Â Â Â Â Assumptions upon which projections were based
Â Â Â Â Â Â Â Â Â Â Â Â Â Â F. Pro-forma cash flow

III. Supporting Documents
Tax returns of principals for last three years
Â Personal financial statement (all banks have these forms)
For franchised businesses, a copy of franchise contract and all supporting documents provided by the franchisor
Copy of proposed lease or purchase agreement for building spaceÂ Â Â Â Â Â Â Â Â Â Â Â Â Â
Copy of licenses and other legal documents
Copy of resumes of all principals
Copies of letters of intent from suppliers, etc.

Don’t be too put off by the components of a business plan. It’s less daunting than it sounds.

Fortunately, there are plenty of tools available to help you complete your business plan. One of the most highly rated products is BizPlanBuilder, which really sets the standard for a plan builder that is easy to use and full featured. It is available from http://www.jian.com for just under $100 and has a great set of wizards to walk you through all the steps. It will automatically format all the data into a final document.

Once you complete your business plan, don’t just print it out and put it on a shelf somewhere. Update it as your business changes so that you can easily monitor your progress. When you’re caught up in the day-to-day activities of your business it’s easy to drift off course. The business plan will help you stay focused on your goals.


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