The last blog was pretty lengthy as it overviewed the contents of a business plan. This blog deals with what has to be the most challenging part of your plan—getting started. Factors that play a role in where you get started depend on the reason for your plan, the state of your business as well as your level of industry experience. Some of my suggestions may be unconventional, but that is because I consider the one thing that may influence you the most: your psyche. The formula for business does not change. So what causes most to bail out before starting? The psychological effects (both good and bad) at the thought of risking everything to start a business. Trust me; unresolved issues of the past along with the normal mix of emotions affect your ability to write your plan. So as I keep both the technical requirements to writing a plan, I also think about an entrepreneur’s emotional needs.
1. Write down your business concept as you envision it. What do you want to do? Why do you want to do it? What business problem are you solving? Is there a demand for your service or are you providing a solution for an unresolved issue in the market place? I encourage you to write what you envision. As you conduct market research (including your competitive analysis), you can get turned around. It’s easy to start doubting or losing sight of the vision for your new company. You can make this your first draft of your company overview.
2. Do an industry analysis. You can order reports that let you see how many businesses are in your area doing what you are aspiring to do and how much money they make on average. You can also purchase, research or ask a business consultant to get you standard revenues and expenses for your industry and use those numbers as a guide to creating your financials.
3. Write your products and services section.
4. Create your financial documentation that you will later update. Why? Usually as a new business, you want to have an idea of what you can make very early in the process. Step 2 and step 3 will allow you to draft your sales forecast as well as all your pro forma statements.
5. In your marketing plan, answers how you are going to achieve what you want to achieve. Your marketing plan will include an in-depth look at your customers and your competition.
6. Draft your advertising and sales strategy. You can incorporate this as part of your marketing section, but still tackle it separately. It is easy to get overwhelmed with the marketing section.
7. Draft your operational plan. In the previous steps, you have defined what you are selling, how your industry operates, how much you want to make and what you need to do (marketing-wise) to make that happen. Your operational plan will define what you need to do (internally) to make it happen.
8. Write your organizational plan. At this point you should be able to answer what management team you need in place to make it happen. If you need separate human resource plan, draft it at this time.
9. Compile your startup requirements (if you are a new business). You should be able to assess what your business requires from the other steps and take an inventory of what you have versus what you need.
10. Write your financial plan. This also includes how you will fund your business.
11. Refine your company overview section.
12. Draft your executive summary. While it’s the first thing on the business plan, it’s one of the last things you create.
13. Review and update your plan and create your appendix.
14. Compile your business plan. I also recommend that you have an editor review your plan.
If you are seeking a loan, remember that more than likely you will have to provide a personal financial statement. Remember that writing your business plan is an iterative process. You want to chew this elephant one bite at a time. A well-thought-out business plan not only empowers you, it also gives you a powerful tool to help you mind your business!
Related Blogs
Understanding the Importance of a Business Plan for Your Startup
Understanding Your Business Plan Content
Additional Resources
About The Author
Jowanna Parris-Daley owns and operates jowanna inc™, a small business consulting company that offers services including business plan writing, e-consulting, website design and technology services for startup businesses.
