» Writing An Effective Business Plan

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Writing An Effective Business Plan

Now that you’ve made some initial decisions about your business, it’s time to start on your business plan. A lot of new businesses skip this important step, which is not only ill advised, but downright foolish.

A business plan defines what your business is. In short, it serves as your firm’s resume. A business plan includes an initial balance sheet, income projections and a cash flow analysis as well as an overview of your marketing strategy, a survey of competitors and an analysis of who your customers are.

If you do need to get a business loan to start your business, a business plan is essential. Most lending firms require one before they will even discuss a loan.

The basics of the plan fall into four distinct sections:

1. A description of the business
2. Marketing
3. Finances
4. Management

Addenda include an executive summary, financial projections and other supporting documents.


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