10 ideas to make your next business plan soar.

Business Planning

Business Planning 101

10 ideas to make your next business plan soar.

Article by Andrew Rogerson

A business plan is a critical document for any business. PERIOD

SCORE – the Senior Corps Of Retired Executives lists the lack of a business plan as one of the top three reasons a business fails. Any creditable book on owning or running a business ownership states its importance.

If you put a business plan together there are two types. The first is a business plan for a brand new business with second type for an existing business. If you would like a free template to use for either business plan, please visit my website; http://www.andrew-rogerson.com/samples. Items 7 & 8 are the respective business plans and come from documents created by SCORE and are available for free.

To create the best business plan that you can, consider the following ten tips.

1. Complete all sectionsBusiness plans take a little time to create. Don’t rush the process. Part of its value is making you take a thought in your head and convert it to a valuable and considered idea.

2. Focus on cash flow if the business plan is to support a loan applicationIf the business plan is to support a loan application to a bank, make sure the cash flow projections are solid and make sense. If financial planning is not one of your strengths, consider getting help from a professional so you get it right. Preferably work with someone that you will use on an ongoing basis in the business so they can provide continuous and consistent advice.

3. Include a Break-even analysis if the business plan is for a loan applicationA bank is in business to make money. The bank therefore want to see from you that you understand there will be income and costs but more importantly, how long it will be before you get to a break-even situation and whether you have the resources to get there, and just as importantly, what buffer you have if it takes longer than you think.

4. Financials need to be realisticPoints two and three above also concern your finance, but this one is just as important and that is, make sure your financial projections are realistic. If the reader of your business plan doesn’t think your financial projections are realistic they will question the rest of the business plan, if they decide to take your business plan seriously.

5. Tell a story but don’t hype the storyThis is not a marketing document for somebody to buy your product or service. It’s a document to explain the what, how, when, where, why of both the present and future of the business.

6. Write the plan to the person who knows nothing about the businessA business is a living and breathing entity that essentially has two main components; people and money. The goal is to explain in simple terms to anyone who reads the business plan what the business is about and what it stands for and how the thoughtful and proper use of both capital and labor will be successful and what help is required to contribute to that success, if the business plan’s purpose is to support a loan application. Remember, write the business plan according to the audience that will read it.

7. Keep the business plan business-like and professional. Not a place for humor or personality.If the business plan is to support a loan application, most lenders are looking to see the direction of the company, whether their capital investment will be used wisely and that the business is something they can believe in.

8. Make sure the details are accurate – don’t exaggerateA business plan is a place to introduce and explain. Wherever possible, support opinions, thoughts or suppositions with facts and statistics; this is not the place for unrealistic exaggerations. Every business fits broadly into an SIC or NAICS. SIC stands for Standard Industrial Classification whereas NAICS stands for North American Industry Classification System. Reports and information about these industries are available and provide readily available data about an industry and the direction it’s going. Use this data in your reports to give credibility to the business plan. Your local library will help with getting access to this information.

9. Be concise, clear and simpleThis is a business document. The reader is not looking for a novel, they can get that from a bookstore.

10. Be careful with the use of technical jargonTechnical jargon can speak to the sophistication of the business plan but it can quickly alienate a reader who is not familiar with all the terms. Use technical jargon sparingly or provide a simple and clear definition, if it’s important to use. Make sure the explanation is generally accepted; not the writer’s pet project. If in doubt, have someone removed from the business read the business plan and offer constructive criticism.

For more information about business ownership, visit Andrew’s website at http://www.Andrew-Rogerson.com

Business Planning

This book explains how small-business owners and managers can use strategic planning to gain a competitive edge, earn higher profits, and increase personal satisfaction. Here is the mantra for the small business person that is the theme of this book: Be focused, be different, and be better. May provides simple models and practical illustrations to guide the small-business planning team through the basics of the strategic-planning process. With strategic planning, you can control your destiny and

Strategic Planning: Fundamentals for Small Business

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Business Planning question by Kristen: What do you need to start an event planning business?
I was thinking of starting an event planning business? But what all do I need to do it? Do you have to have office space or some kind of connections? And will it need a lot of start up money?

Business Planning best answer:

Answer by ibu guru
You absolutely need experience in event planning; plus good connections for suppliers; plus excellent reputation, references & referrals (to get any business); plus money & excellent credit. You need money & credit or no suppliers for services, products, etc. It is best if they have known you and done biz with you over a lengthy period so that they know you are reputable, pay your bills, and don’t muck up the orders for your clients.

The event planning biz has pretty much tanked in the recession/depression, everyone who has done hotel event management wants to get into the biz (since they’ve lost their jobs), and most of those who were already in the biz are totally desperate for biz and extremely competitive. You had better have sufficient income elsewhere (e.g. very well compensated spouse in a very secure job), plus about a year’s worth of biz expenses. You have to pay suppliers before the client pays you (and some clients are taking 90 – 180 days to pay, if they pay at all).

In short, unless you are superlative in this biz, have plenty of money, a sterling reputation, and a big-time celebrity client list, forget the whole idea. Bad timing. And I bet you don’t have the extensive experience, et al, you need to even start such a biz. If you did, you wouldn’t waste your time thinking about it, no less asking YA questions.