Steps to writing a pithy business plan

Written By Steps To Faculty Published August 23rd, 2010

Writing a business plan can be time consuming, but it is required for all business funding. The hardest part of writing a business plan is the initiation. Below is a step by step guide to simplify the processand get you on your way.

Step 1 Determine the type of funding you seek

How you craft your business plan largely depends upon the person who will read it. If you are seeking venture capitalists, then your plan must be very sharp since this is highly competitive and requires at least ten references from your networking. On the other hand, bank funding is a detailed analysis of your business in a fifteen page scope. Capitalists like to read about return on investment, while banks focus on risk reduction and loan repayment.

Step 2 Outline the body of the plan

After you have determined who will be reading your plan, you then need to outline it. Regardless of the type of funding yu seek, there are four main sections that all business plans contain. These are the discussion of your business, the marketing section, the financial section, and the management team portion.

Step 3 Start with the basics

Once you have drafted an outline of the plan, you must now include a cover sheet, a statement of purpose, and the table of contents. The cover sheet presents the name of the business and the management team. The statement of purpose describes the business, the marketing plan, any competition in the industry, and the operating procedures that the business will adopt. The table fo contents lists the page number that each of these subheadings begins on.

Step 4 Compile your financials

When putting together the financial information about your business, be sure to include a balance sheet, the breakeven assessment, the loan applications, a capital and supply outline, pro forma income forecasts, profit and loss statements, and a pro forma cash flow.

Step 5 Provide support

You should also include support documents. These include three years of past tax returns (called personal financial statements at banks), a franchising contract if applicable, a copy of the lease or purchase agreement, copies of licenses, and letters of intent from all suppliers.

The business plan determines whether or not you receive funding. Be sure to review it seven times. Please visit stepsto.com for more great business advice.


Roger Due

Investing in Your Destiny® & Coaching Program - Wealth Building Summit Dallas, Texas

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