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You will
need to do a great deal of research before opening
your business. Writing a business plan, a document
that clearly describes your vision of all the details
of business operation, is essential. The plan allows
you to apply your research to your decision-making.
Although a business plan is time consuming, it is
important for business success. Completing the plan
forces you to examine all decisions of management,
marketing, personnel and finance in an objective and
organized way. Another important benefit of the
planning process is that you will project the amount
of financing needed for start-up and the early stages
of your business. The plan will, therefore, become a
useful tool in securing capital before start-up. Then
the plan becomes your owner’s manual guiding your
daily operation and activities.
Among other
things, the business plan describes the products and
services you will sell, the customers to whom you will
sell them, the production, management and marketing
activities needed to produce your offerings, and the
projected profit or loss that will result from your
efforts. A complete outline of the content of the plan
is supplied below. When you adequately cover all of
the outline elements, your business plan will provide
answers to these questions:
Who are
you? A personal resume outlining the education and
experience that will allow you to start and manage
your business successfully.
What are
you going to do? A description of your business
concept, the products and services you will be
providing, the market which you will serve, where you
will be located, how much money you will invest and
how much additional money you will need (if any).
Where
are you going? The short- and long-term goals you
have set for your business.
How are you
going to get there? The strategies that will allow you
to meet your financial responsibilities, compete with
others in the marketplace, learn new management
skills, communicate with your customers, etc.
Planning
your business is not a one-time activity. It is
a working document that you must continually modify
and update. Existing businesses, as well as
start-up firms, benefit from writing and updating
their goals, plans and activities. Although plans
differ in some content elements depending on whether
the firm is a retail, manufacturing, distribution or
service enterprise, there is a basic outline relevant
to all businesses to help you get started. Brief
explanations are provided in each section, but if you
have questions about the application of the outline to
your particular business, there are regional groups
willing to help you write your business plan.
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