Business Plan for a Startup Business
The business plan consists of a narrative and several
financial worksheets. The narrative template is the body of the business
plan. It contains more than 150 questions divided into several sections.
Work through the sections in any order that you like, except for the
Executive Summary,
which should be done
last. Skip any questions that do not apply to your type of business. When
you are finished writing your first draft, you’ll have a collection of small
essays on the various topics of the business plan. Then you’ll want to edit
them into a smooth-flowing narrative.
The real value of creating a business plan is not in having
the finished product in hand; rather, the value lies in the process of
researching and thinking about your business in a systematic way. The act of
planning helps you to think things through thoroughly, study and research if
you are not sure of the facts, and look at your ideas critically. It takes
time now, but avoids costly, perhaps disastrous, mistakes later.
This business plan is a generic model suitable for all types
of businesses. However, you should modify it to suit your particular
circumstances. Before you begin, review the section titled
Refining the Plan
Executive Summary
Write this section last.
We suggest that you make it two pages or fewer.
Include everything that you would cover in a five-minute
interview.
Explain the fundamentals of the proposed business: What will
your product be? Who will your customers be? Who are the owners? What do you
think the future holds for your business and your industry?
Make it enthusiastic, professional, complete, and concise.
If applying for a loan, state clearly how much you want,
precisely how you are going to use it, and how the money will make your
business more profitable, thereby ensuring repayment.
found at the
end. It suggests emphasizing certain areas depending upon your type of
business (manufacturing, retail, service, etc.). It also has tips for
fine-tuning your plan to make an effective presentation to investors or
bankers. If this is why you’re creating your plan, pay particular attention
to your writing style. You will be judged by the quality and appearance of
your work as well as by your ideas.
It typically takes several weeks to complete a good plan.
Most of that time is spent in research and re-thinking your ideas and
assumptions. But then, that’s the value of the process. So make time to do
the job properly. Those who do never regret the effort. And finally, be sure
to keep detailed notes on your sources of information and on the assumptions
underlying your financial data.