Writing a Business Plan

The business plan consists of several major components. They are provided in some detail below. Your type of business, needs for capital for startup and initial phases, customer demographics and more will dictate to a degree the content you would probably want to place in the business plan.

As owner of three businesses now, formerly of four businesses, the information here will be based on my own experience and research; however, you might find the content of this essay interesting and hopefully useful to some extent.

The first part is the title page. Here, you would place the name of the business in the middle of the page, just about one inch from halfway down. Below it, write “Business Plan prepared by” then your name. Lower, place the date and revision number of the plan.

The second part is the summary sheet. This is where you will name the owner(s) and the planned or existing structure. Examples might be “A sole-proprietorship owned by...” or “A partnership owned 60% by [person A] and 40% by [person B]”. This should accurately define who will make what decisions and how much wealth is owned by each participating owner or partner.

The third part is the reason why the business should exist, and who will probably buy from it. Here, you would use research on your future customers, and what products and services they most likely would be interested in purchasing from you and/or your business partner(s).

The fourth part is the assets sheet. Here, you would like the property, like domain names, toll-free numbers, office equipment like computers, printers, faxes, and any real estate owned by the company, as well as any intellectual property like copyrights, patents, trademarks or other similar works.

The fifth part is to write up an anticipated cash flow chart and breakdown, to help investors know a little more about what exactly you have in mind for your business and here you get to show your diligence in researching permits, licenses, insurance, bad debt from nonpaying buyers, etc. Show a date when the business is expected to go into the black, so investors may get a sense of how long they will have to wait to get a return on their investment.

The sixth part is to write a summary, indicating what you need (if anything) like capital, intellectual property, domain names, phone numbers such as toll-free numbers, and anything else that is required. Be sure to list necessary workers and private contractors who will be key to the success of the business. List everything you will probably need in the first year of operation, and describe anything that has to be put together to make everything work property and generate a profit.

The seventh part is to consult with an attorney to get the plan copyrighted. This can be done with the help of an attorney; however, many individuals choose to copyright works on their own. Copyrights vary in cost, depending on if you choose online or paper based registration, but generally can be about $35 to $50 and are typically good for the life of the author plus about two decades. The copyright is optional, but is definitely something I like to do.

Write to the United States copyright office, or visit http://www.copyright.gov for more information on copyrights.

For the finished business plan, you may want to make a number of copies, depending on how many people you trust. A non-disclosure agreement is often a wise investment, to be signed by every person who is about to be trusted with the business plan.

Finally, take the plan to a office supply store and purchase some copies of your paperwork. A thermal binder often makes the best presentation. Then, carry some copies with you and visit your favorite bank(s) and venture capitalist(s). Keep in mind that your credit score will be a big factor in deciding your loan amount and interest rate. Good luck on your new endeavor!