How to Start a New Business Plan
- 1). Determine your reasons for going into business for yourself and what type of business you want to open. There are many business types and structures. You can open a partnership store, or a sole proprietorship contracting business, for example. Also ask yourself questions such as, “What am I good at?” “Is there a demand for my service or product?” and “What financing will I need?”
- 2). Introduce your business plan by writing exactly what the business does and its goals. Detail the organizational and legal structure of the business and its ownership. State the experience and skills you have that will benefit the business. Talk about the business’s advantages over its competitors.
- 3). Discuss the marketing strategy of your business. Talk about what services and/or products you will offer. Explain who the customer is for your business, and the demand for your business. State how large your market is and where it is located. Detail exactly how you will market and advertise your business as well as how you will price your products/services.
- 4). Explain your source of finances, how much money you will need to start your business, and what you have in-hand to start out. Create an operating budget for each month of your first year in business. Write a projected investment return and cash flow statement for each month of the first year. Create estimated balance sheets and income statements for your first two years. Explain the break-even point, and discuss how you will pay yourself and your personal balance sheet. State who will keep your accounting books and how they will keep them. List contingency plans for problems that may arise.
- 5). Discuss how you will manage your business in the operations section of your business plan. Talk about how you will hire and any employee procedures you plan to use. Explain insurance, any rent contracts and other aspects of your business. State what equipment you will need to make your services or products. Include delivery and production of services and products in your discussion.
- 6). Conclude your business plan by stating your goals and what you hope to accomplish in your business. Also state that you are committed to making your business succeed.
- 7). Review your business plan with a SCORE or Small Business Development Center (SBDC) counselor. Find the SCORE location nearest you on the organization's website (www.score.org), or review your plan with a counselor online. These services are free.
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