Creating a business plan is a crucial step in forming a new business, and can help to revitalize an existing one. Business plans do not have to be complicated to be effective, in fact, often a simple plan is all your business will require.
Business plans help you to step back and take a look at your proposed business as a whole Instead of just dreaming about starting a business, a plan helps you nail down the things you need to accomplish to make your dream a reality. The very act of creating your plan will force you to consider every aspect of your business, and help ensure you haven’t missed anything. Many costly errors can be avoided by simply planning ahead.
By taking the time to craft a well organized plan, you will show others that you are serious about your endeavor, and your start-up is more likely to be taken seriously. A good plan can help you secure much needed financing and promotional opportunities as well.
A good business plan needs to be broken down into several parts, and cover several aspects of your business. You will need to include the following sections:

  • An engaging and impressive cover, with your business name and any other relevant details
  • An executive summary or an overview of your business, detailing who you are, and what you have to offer. Include your mission statement, if you have one, and any other supporting materials
  • “About us” or a brief history of your company—why and how you came up with your business idea, and why you are the ideal person to run it.
  • Industry information, including facts and figures about your market and your competitors, and how your business plans to compete in the marketplace.
  • Business details, including who your target customer is, why they need your service, and how they will find you.
  • Biographical information about business owners and key employees
  • A plan of action, including marketing and financial plans for the future, and your short and long term goals
  • Financial history of the business (for existing businesses)

Most of this information should be easy to come up with, or should get you thinking about your business in a whole new way. Once you have a plan you are pleased with, revisit it about once a year, updating and editing as your business grows. Your plan does not have to be intricate or flashy, but the time and care you take in preparing it will show.