The short business plan
Business Plans do not have to be long, formidable and detailed documents. Often 2 or 3 pages will be enough. The main goal is to get your ideas, strategies, and resource requirements out of your head and onto paper. This documentation is important for several reasons. First, plans tend to become more “real” once they’re written. Second, for planning purposes it is important to be organized and objective. It is easier to achieve this in writing. Third, a written plan is important to share with others and get their feedback. Fourth, investors and financiers will want to see the numbers.
An abbreviated business plan forces the writer to be concise and include only essential information. The Plan will be more focused and understandable. In addition, the plan should receive more favorable attention and close reading.
COMPONENT PLAN Although there are different opinions, some variations of essential elements for your business plan can include:
Introduction/Executive Summary (or Background)
Mission vision
Key products/services
Management/Operational Plan
SWOT Analysis
Finance and Financing
Marketing
BASIC INFORMATION. FOR EACH SECTION
The introduction and background may not seem too important, but how did you come up with the idea? Is it the original concept? The Introduction/Executive Summary/or Background Statement is to grab the attention of readers and prepare them for what follows.
In the Mission/Vision Statement area, try to describe exactly what your organization’s purpose is and where you see it going in the future. Key Products or Services is where you describe what you will produce and sell.
Management is the section where directors (founders) are identified along with an indication of staffing requirements.
The SWOT analysis identifies your proposed company’s strengths and, perhaps more importantly, its weakness, as well as available market opportunities and threats (primarily from competitors).
Finance and financing specifies the money needed to start and maintain your operations, and the source of the “start-up” funds.
Marketing identifies your customer (target segment) and how you propose to create/satisfy their need/desire for your products/services. Pricing, packaging, sales, and distribution may also be included.
HOW MUCH DETAIL?
In preliminary Business Plans, less is often more. Its purpose is to convey essential information, not to answer every question or provide every detail. At some point in the future, you will need to work out the details, although there is plenty of time to do so. I’m not suggesting you be superficial, just concise and “tight”. Aim for two or three substantive paragraphs in each section. Remember: get that plan out of your head and put it on paper!
Copyright ©, 2009, Dr. Ben A. Carlsen, MBA. All rights reserved worldwide for all media. You may reprint this article in your ezine, newsletter, newspaper, magazine, website, etc. as long as I leave all links active, do not edit the article in any way, leave my name and bio box intact, and follow all EzineArticles Terms of Service for Publishers.