Your First Business Plan

You've heard that you need to write a business plan, but you're not even sure what should go into it. A business plan is simply a description of a business’s business model. It is used for planning purposes by the business, but it is also essential if you are going to approach investors or apply for a loan. Consequently, it must be well thought out and provide a clear path toward financial success. Remember, though, that a business plan is a living document. That means that is is constantly updated and revised to meet new and changing circumstances.

Aside: This web site offers information and services for new online businesses and existing businesses who want to establish an online presence.  Check us out!

There are many acceptable formats, so do not spend a lot of time worry about the specifics of what should come in which order. It is most important that you develop a plan that makes sense to you and to your specific business. You can actually find software that will take care of the formatting for you.

A typical business plan will begin with a summary of the business. If your company is new, you will want to provide background information on the owners and managers of the business. You should include the number of employees (if any), a very brief description of the product or service that the company offers, the legal structure of the business and its current financial circumstances.

There should be an analysis of the market for your niche. What are the demographic characteristics of the customers? What are their needs? How does your product or service meet those needs? What gives your company a competitive advantage?

You should also include a thorough analysis of the competition in the niche. Describe what companies are the industry leaders, how they achieved their levels of success and what you can copy as well as what you can do differently.

Describe your marketing approaches in detail. How do you plan to let potential customers know of your existence? How do you collect leads? What are your conversion tactics, the methods by which you will convert those leads into actual customers?

If you are selling a product, you should explain the sources for that product. Is your source reliable? Do alternative sources exist? Are your sources competitive in providing you with the product at prices that allow you to sell the product at a price that allows a reasonable profit margin?

It it all seems a bit daunting, remember that all of this is information that you absolutely must have in order to properly manage your business. You write the business plan for an essential purpose, not for the simple result of "having a business plan." A good business plan must be useful.

If you decide that developing the plan is taking too much of your valuable time, remember that there are business consultants who can be hired to assist you with the research and even the authoring of your plan.