Simple Business Planning

By Scott Christ, eHow Contributor

Business plans can help you accomplish

your financial goals

Planning is an essential part of any business. According to Entrepreneur Magazine, there are
three important parts of business planning: a business concept, understanding your
marketplace and communicating your financial information. Also, a typical simple business
plan runs 15 to 20 pages, but complex business plans can get up to 100 pages in in length. To
create a simple business plan, organize your content into seven key components.
1. Executive Summary
o

The executive summary of a business plan communicates what you hope to

accomplish with your business. Keep it short and simple -- a half page or less,
says Entrepreneur Magazine.

Business Description
o

Another part of simple business planning is the business description, which is a

high-level look at how all of the different elements of your business fit
together. Describe your business in detail and include factors that will make
your business successful. Communicate your business structure, such as
wholesale, retail, food service, manufacturing or service oriented.

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Market Strategies
o

The first part of the market strategies section of a simple business plan should
provide some basic research about your market. For example, include the size,
structure, growth prospects, trends and sales potential of your marketplace.
Describe your market share projections, your positioning in the market, and
how you will price, distribute and promote your products and services.

Competitive Analysis
o

In the competitive analysis phase of business planning, identify your

competitors and their product and service offerings; competitor market
segments; strengths and weaknesses; and any barriers that may hinder you
from entering the market. State each of your competitors' advantages in the
market and include their contact information, such as address, phone number
and website URL.

Design and Development Plan

o

The design and development planning phase includes product development,

market development and organizational development. A simple way to
accomplish this phase of your business plan is to develop a set of procedural
tasks for each area of the development plan. For example, to develop a new
food product for your restaurant, you would follow procedures, such as
consulting with your chef, gathering ingredients, determining the optimal
cooking method, testing the recipe, adding any additional ingredients and retesting.

Operations and Management Plan

o

According to, the U.S. Small Business Administration, a simple but effective
way to organize the operations and management structure of your company is
to create an organizational chart with a narrative description. This section
should also include background information about your business owners and
key management personnel and strategies for hiring, training and retaining
employees.

Financial Plan
o

The financial plan is one of the most difficult stages of business planning. To
keep it simple, Entrepreneur Magazine says to include a few basic financial

statements, including a cash flow statement, an income statement and a balance

sheet.

Read more: Simple Business Planning | eHow.com

http://www.ehow.com/info_8140129_simple-businessplanning.html#ixzz29AVpD9Ir

What Questions Will Be Asked When Showing Investors

My Business Plan?
By Marty Aquino, eHow Contributor

There's no such thing as a dumb question, but

there are wrong answers.

Presenting your business plan to prospective investors can be nerve-racking, but not being
ready for their questions can be crippling. Investors routinely want to know what the driver
for demand is and how big it is. In addition, your executive team is a key factor and
sometimes even more important than the business idea. Investors want to know the challenges
you face, and most require a detailed explanation of how they will get their money back.
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1. What Is the Opportunity?

o

Investors strive to find realistic investments in exploding markets. They want

know how large the opportunity is, your product's impact on the customer and
your market-penetration strategy. Many investors prefer to invest in market,
sales and revenues over technology. In other words, a company with strong
existing sales trumps a company with interesting technology and no sales. Not
surprisingly, the opportunity must be large enough to justify your funding
request.

Who are the Founders?

o

You must show that your executive team is well prepared, trained and
experienced for the project in question. Resumes are not enough. Investors will
actively seek out the relevant experience and previous track records of each
founding member. If you're a successful serial entrepreneur, investors may
overlook you not having too much experience in a particular industry. It is
imperative that you show your previous successes. Otherwise, it could be
interpreted as a red flag by an investor.

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What are the Deal Killers?
o

While entrepreneurs are generally an optimistic group, investors tend to be

conservative and eager to point out any flaw they feel might be an
insurmountable challenge to your company. They want to know the potential
obstacles lurking around the corner. Sometimes an idea truly is great, but the
timing is off and perhaps too far ahead of its time. Investors must assess threats
to your success, such as competition, market conditions and political climate.

What is Your Exit Strategy?

o

Successful investors are deeply interested in how you plan to be profitable.

Furthermore, they want to know what your grand plan for success is. If you

plan to be purchased by larger companies in your industry, you must identify

them. Going public as a company traded in one of the major stock markets
requires a substantial capital outlay and may not go over well with your
investors, if you will need to raise money again. Be cognizant of these dangers
and show that you are prepared with countermeasures.

Read more: What Questions Will Be Asked When Showing Investors My Business
Plan? | eHow.com http://www.ehow.com/info_8161230_questions-showinginvestors-business-plan.html#ixzz29AW3t7WQ

What Should Be Included on a Cover Page of a Business

Plan?
By George Lawrence, eHow Contributor

Successful businesses share at least two things in common: a strong and detailed plan of
action (and people capable of implementing and following that plan) and the ability to lure in
customers or investors. A well-written and attractive business plan can lay the groundwork for
achieving both of those things. The first page that potential customers or investors see is the
cover page.
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Formal Business Proposal Cover Page

Define What an Executive Summary Is Regarding Business Plans

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1. Importance of a Business Plan

o

Your business plan reflects you as an entrepreneur and your business as a

potential market for success. Potential investors, lenders and customers may be
skeptical of your business idea -- even if it is genuinely sound and workable.
The business plan, if carefully written, can help win over your skeptics. It is
important to put time and effort into each section, even the most seemingly
mundane ones, like the cover page.

Basic Information
o

Business plan cover pages should list the basic information about the business
such as the business name, the owners and contact information. Business Plan
Secrets Revealed, a website with business planning advice, suggests including
a headline or tagline that reveals something about the business and a business
summary, among other things. Ultimately, you must determine what is
aesthetically pleasing; you want to avoid too much clutter.

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Graphics and Design
o

A plain white page with black letters and words listing the basic information
about your business smacks more of college term paper than professional
business plan. At the very least, the cover page should have your company logo
prominently displayed. Additionally, you should consider including colorful
pictures or graphics of scenes or things that relate to your company, such as the
products you plan to offer.

Resources and Assistance

o

Including graphics and design on your business plan cover page can be tedious
and potentially expensive. Entrepreneurs ought to consider seeking assistance
from professional graphics design firms in the area or over the Internet.
Additionally, resources such as the U.S. Small Business Administration
provide free and helpful information on the Internet. Whether you need
resources or assistance, you should at least consider them rather than risk
letting your business fall by the wayside.

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Instructions
1.

o 1
Visit SCORE. SCORE is a nonprofit organization that partners with the Small
Business Administration (SBA) to provide advice and education to small
businesses. One of the many things SCORE offers is business templates,
including sample business plans for both startup and established businesses.
You'll find SCORE at score.org.
o 2
Entrepreneur.com has an excellent section on Business Plans, including more
than 50 sample business plans for different types of organizations and
industries. Read through the articles on creating a business plan and then look
for a sample plan realted to your business.
o

o 3
BusinessPlans.org has a section of sample business plans, including entries
from the Moot Corp Competition at the University of Texas. These plans were
created by MBA students and judged to be finalists or winners by a panel of
venture capitalists.
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Instructions
1.

o 1
The SBA has some wonderful free resources, including free business plan
templates, samples and even a free business plan course that is very easy to
follow and only takes 15-20 minutes to complete. Visit the SBA.gov website
and search for 'free business plan'. This will give you the index of all of the
resources available.
o 2
Another way to get started on your plan is to do an online search of 'free
business plan samples'. A sample is a great place to start, rather than a
template, because it has already been completed and will layout all of the
topics that will need addressed in your business plan.
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o 3
Take your time when starting your busines plan. Start with a short draft
covering the main aspects of your plan and build on that as you gain
knowledge of your business. Writing a good plan takes time and are really
never complete. You will need to improve and expand on your plan over time
for the growth of your company.
o 4
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1. Executive Summary
o Write this last. It summarizes everything in the business plan and is often the
first thing a prospective investor or loan officer will look at. Make it
impressive, optimistic and realistic.

Mission Statement and Company Description

o A mission statement sums up the company's objectives in one to three
sentences. A company description is a lengthier document that outlines the
history and future of the company, usually no more than two pages.
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Description of Products and Services

o Describe the products you sell or your services. List your suppliers and your
criteria for selecting the inventory you keep. if you're a service business,
describe the services you offer.

Marketing
o Detail your marketing plan. You must know your target market, your
competition and how your business will stand out.

Operations & Management

o Describe in detail how the business will be operated. Include a chart of
responsibilities, and include the resume or history of key players.

Financial Statements

o Include your personal financial statement. Investors and loan officers will want
to see that you find the project worthy enough to put your "money where your
mouth is" and that you're a person of means, who stands something to lose if
the business should fail.
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Read more: What Are the Components of a Business Plan? | eHow.com

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1. Overall Purpose
o A business plan specifically answers the following questions: 1) What service
or product will your company make or offer, and why is it being offered? What
is the need being filled? 2) Who is going to buy the product or use the service?
Who are your primary customers? Why will they want to buy it from you
rather than another company? 3) How are you going to let your potential
customers know that you are providing this service or selling this product? 4)
Are you going to have a physical or online presence or both? and 4) Do you
have the necessary funds to start the business and build it while growth is still
slow? Are you going to need outside financing?

Clearly Define the Business

o Some businesses do not succeed because they do not clearly define what their
goals are. For example, one shoe store owner carefully looked at how he spent
his work hours and finances. He realized that most of the time he was repairing
shoes. Yet, he was still spending a great deal of money on shoe inventory and
advertising shoes. He needed to focus his marketing efforts and resources on
shoe repair. This helped the business expand.

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Right Business for You

o Another important reason to have a business plan is to make sure that this is
the right business for you. Just because you hear that a type of business can be
successful, does not mean that this is the best one for you to start. Not only do
you need a background in the product or service, but you should have an
interest and a passion in what you are selling. If you do not have enough
experience, work with someone else who has a similar business, and see if it is
right for you.

Right for the Market

o The marketplace is continually changing. Something that was a big fad a
couple of years ago, may have already died out. Or, there may be so much
competition that it is too difficult to break into the market. Market research is
important. Perform a test to discover if the product or service you plan on
offering is of interest to your target market. Also consider if any changes need
to be made in order to make your offering more desirable.

Plan for Change

o Remember that your business plan is critical to start your venture. It is also
important to keep your business going strong. Your plan should be flexible
enough that you can make changes as you go. You need to revisit your business
plan at least annually, if not every six months, when you are starting out. You
will continually be learning something new about your product or service,
customers, competition or industry that needs to be incorporated into the
plan.
Read more: About the Business Plan | eHow.com
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1. Executive Summary
o The executive summary provides a brief summary of what will be shown in the
business plan itself. This summary should be no longer than two pages and
should provide direction as to where to find certain aspects within the plan.
The executive summary should include a brief introduction and must include

your name, credentials, your product, your competition, the amount of money
you are seeking, the length of a loan or investment and repayment terms.

Business Description and Employees

o The business description and employee write-up will follow the executive
summary. The business description should be detailed and all-inclusive,
including the legal description, state, and type of business that you are
beginning. This description will also include your business' purpose and
industry . This section of the plan is usually around two pages.
Your employee descriptions should include full details on your employees,
departments, costs, salaries and benefits you will provide for them. It is also a
good idea to include an organizational chart for quick reference of your
employee structure. This section of the plan should be at least one page, but
can grow depending on how many employees and departments you have. Be
detailed with your information, but not repetitive.
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Operations & Location

o The operation and location section of your plan will address the your products
and services. Here, show how and where you will provide your services, hours
of operation, as well as, any structures or equipment that you require to provide
the service. If you lease or own your property, it should be listed in this space.
Additionally, highlight supplier information in this section and address the
costs and services associated with supplies. The length of this section is also
dependent upon your business and services provided.

Marketing
o The marketing section of your plan is generally the most important. In this
section, you will provide the promotional plans for your business as well as a
rundown of target customers and competition. There is generally quite a bit of
research in this section as this is where you list the potential spending habits of
your customers, their needs and detail on what makes your product or service
stand out. A public relations plan is also important for starting and maintaining
your business and any plans you have in this area must listed in the marketing
section of your business plan. This section's length is also dependent on the
type of business and service you will offer. It is important that you spend an
ample amount of time including information in this section. You should have at

least two full pages of information for this section. However, the more
carefully thought out your information and research, the more information you
will be able to provide in the business plan.
Read more: How Long Should a Business Plan Be? | eHow.com
http://www.ehow.com/way_5166611_long-should-business-plan.html#ixzz29AQJHqJ1

Instructions
1.
o 1
Determine what kind of business, or category, you will be planning to start.
There are many genres and types of businesses, a lot of which are profitable, so
in order to find the right free sample business plans, you'll have to determine
what kind of business you are in. This will make your business plan search
much easier.
Some of the more common categories are:
* Airline and Aviation
* Bar and Nightclub
* Beauty Salon and Day Spa
* Bed and Breakfast and Hotel
* Car Wash and Automotive
* Coffee Shop and Internet Cafe
* Computer Consulting, Repair, and Reseller
* Construction and Engineering
* Consulting
* Day Care Services and Children's Products
* Education and Training
* Farm and Food Production
* Fitness Center, Golf Course, and Sports
* Home Business
* Magazine Publishing and Media Communications
* Manufacturing
* Medical and Health Care
* Nonprofit
* Personal Services
* Pet Services and Products
* Product Development
* Professional Services
* Real Estate
* Recycling and Waste Management
* Restaurant Cafe and Bakery
* Retail and Online Store
* Wedding and Event Planning
* Wholesale and Distributor

o 2
Visit the multitude of websites available that will give you access to free
sample business plans for your type of business. There is a list of resources
below, all of which do not require any type of payment in order to view the
free sample business plans.
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o 3
Print out the free sample business plans for your category, even if the business
itself mentioned in the sample business plan isn't exactly the same as yours.
You want as many as you can so you can learn what works and what doesn't
work for each, so you can compile the best features from each into your own.
o 4
Use a highlighter to highlight certain key points that you like or things that
seem to be mentioned in each of the free sample business plans. This will
definitely give you an idea of exactly should be included in each business plan,
and what is just an add on for that particular company.
o 5
Organize the free sample business plans that you like into a binder with clear
sheets. Keep the ones you like best in the front of the binder so you can easily
access them when needed.
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Read more: How to Find Free Sample Business Plans Online | eHow.com
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How to Improve Your Business Plan

By Charles Crawford, eHow Contributor

As your business evolves,

your business plan can be updated and improved.

The business plan is for planning. Even though you may use it for raising funds, forging
relationships with other companies and sometimes for executive recruiting, its main purpose
should be to aid in your ongoing planning. When you conduct performance reviews of your
business, you will see where you can improve parts of your operation. When that happens,
update the corresponding part of your business plan. Treat your business plan as a key
planning tool -- use it often -- and it will serve you well for years to come.
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Things You'll Need

Not applicable

Instructions
1.
o

Look at your executive summary. It should summarize the highlights of the

plan and it should contain essential information such as the name of your
business, its location and a brief description of your product or service. State
the purpose of the plan. If you are seeking investment, say so and give the
amount requested and the percentage of ownership being offered. Include
highlights of your management team. If you are seeking a loan, say so and
state the amount.
o

Explain your new company's short-term goals and long-term goals in detail.
Short-term goals might include hiring during the first year a training officer
who would be responsible for giving certification training to drivers of longhaul trucks. Long-term goals might be adding three new company locations
during the next two years. Describe how long it will take to achieve important
goals as the company grows.
o

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o

Write detailed summaries of your direct competitors. Make a note of their

product offerings, calculate the percentage of the market that they command
and discuss their financial standing to the degree that you can. Tell about their
pricing policy and estimate their gross margins (selling price less cost of
goods) to the best of your ability. The more you can discover about your
competitors, the better you can perform against them. State clearly how your

company and its products are (or will be) different and how you will give
better value to your customers.
o

Show that customers are going to buy your product at the price you have set. If
you have a history of sales activity, quote the data in your business plan.
Include copies of sales documentation. Forecast future sales based on past
sales plus economic assumptions. If you do not yet have any sales, you may
want to explore the use of focus groups and report the results in your business
plan. The use of focus groups is a way to test new products before they are
made available to the public. Written results from focus groups can be included
in your business plan to reinforce predictions of future sales.
o

Examine your financial section. Work on this with your management team and
your financial adviser or accountant. Your financial projections should include
your balance sheet, income, expenses and cash flow. Your gross margins
should be large enough (about 50 percent is usually recommended) and they
should compare favorably with the industry. You should include a break-even
analysis.

Read more: How to Improve Your Business Plan | eHow.com

http://www.ehow.com/how_7817990_improve-businessplan.html#ixzz29AUhM5mr
1. eHow
2. Business
3. Start a New Business
4. Business Plans
5. Disaster Backup Plan for Businesses

Disaster Backup Plan for Businesses

By Rhonda Campbell, eHow Contributor

Learn how to prepare for

business interruptions.

Businesses that have disaster backup plans, also referred to as business continuity plans, avoid
losing pertinent customer and company records. Disaster plans also help save the lives of
employees who work at organizations that experience natural and/or human made business
interruptions like fires and floods. Producing the plans in-house saves companies money.
However, there are organizations that create business continuity plans for external clients.
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1. Identify Critical Business Components

o

Business leaders should identify critical business operations. These are

operations or functions that can cause the entire business to suffer financially if
they are not able to function normally. Write steps to keep these functions
operating on business continuity plans. For example, a customer service firm

could establish alternate telephone numbers to use should its normal business
lines get disrupted.
Identify Critical Personnel
o

List the names, titles and contact information of all critical personnel in each
department at the organization in business plans. The chief executive officer or
most senior leaders at the organization should have the names, titles and
contact information of all employees they supervise or manage. They can
obtain this information from their human resource managers. Home addresses,
emergency telephone numbers and email addresses are key components of the
contact information. It is also important that critical personnel know their role
in the event of an emergency or business interruption. Organizations should
also consider acquiring the services of an electronic notification service so they
can contact all employees within their organization in a matter of moments.
Companies that choose to contact their employees manually can create call
trees that list each employee in a department's name, address and telephone
number and the order each employee is contacted in. Critical employees are
contacted prior to less critical workers.

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Backup Electronic and Paper Records
o

Backup electronic files nightly; this includes customer account information.

Scan and store paper documents in electronic format. Additionally, placing
passwords on documents and records that contain private and confidential
information keeps pertinent data from entering the wrong hands.

Create Alternate Work Locations

o

Identify alternate work locations for critical employees and remaining staff
members. Many organizations can allow employees to sign into work from
home using laptops and desktop computers. If this option is selected,
organizations should ensure that laptops and desktop computers are encrypted
with passwords and have virus, identity theft and spyware protection software
on their hard drives. When critical employees need to physically come into a
workspace, companies should secure alternate work locations through external
companies like Sungard. Have technology personnel test servers and

computers at alternate work locations regularly to ensure that critical files are
easy to retrieve.
Test Plans
o

After business continuity plans are created organizations should test them.
Conduct emergency evacuation tests to examine how well employees know
how to leave their work spaces and meet at assigned locations so they are
accounted for during fire drills and other evacuation tests. Also test emergency
call trees so employees know how to respond to emergency notifications.

Read more: Disaster Backup Plan for Businesses | eHow.com

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