Creating a Business Plan

Business plans

Often I was asked by aspiring entrepreneurs:
- I have to write a business plan?
- If so, where can I find information on how to write a business plan?
- What should be included in a detailed business plan or how it should be?

These are good questions. Let me begin by saying that there are several preliminary steps should be completed before undertaking the arduous task of compiling and organizing data in a complete business plan.

Usually, after a trial to determine whether a business idea is worth pursuing, entrepreneurs start a process immediately. For some entrepreneurs, the process of validating the idea is relatively fast, while others describe flow. However, over the years, I have observed there are some preliminary steps to take before you start developing your business plan. These preliminary steps are a three step process I refer to as the mirror control Gut (GCM) Test:

1. Understand if you really have an entrepreneurial personality profile. Many people assume because they have had success in the traditional work that will automatically succeed as an entrepreneur. Wrong! Wrong! Wrong! I am so passionate entrepreneurs to do to prevent this error, I wrote a book on this topic called Transition from employee to entrepreneur - A Roadmap for aspiring entrepreneurs.

The premise of this thesis is that success is not guaranteed based on past successes in the workplace. These three simple steps to take before making the decision to invest a substantial portion of the equity, undertake 3-7 years of your life, and put your future on the line in an attempt to become your own boss. One of the first things you must do is assess the personality profile, taking a test business profile. This step helps to begin to make the determination if you have what it takes to be an entrepreneur.

2. After validating the entrepreneurial profile, the next step is to determine what kind of trader you are. This is another important step many people ignore - at their own risk. There are four business models for an entrepreneur to take into account in making the decision to become his own "boss":

one. Starting a business from scratch
b. Buying an existing business
c. Becoming a franchisee in a franchise system
d. Becoming a consultant in your area of ​​expertise

Each of these business models has advantages and disadvantages, as well as commonalities. How do you decide which business model is right for you?

- If the entrepreneurial spirit is key to your personality, you should probably start your own business.
- If your risk profile is in the middle of the road, then buying an existing business can be a better fit for you.
- If you like the idea of ​​starting your own business, BUT you do not want to risk starting a business from scratch and do not necessarily want to buy someone else's business, franchising is probably the best route.
- If you have limited funds, but you do have a high degree of technical expertise in their field, becoming a consultant might be the best choice.

You must decide which format best suits you before you decide on the activities you want to start a business or buy, or sign as an affiliate or consultant.

3. After completing the first two steps, a specific transaction can be selected and then you can begin the process of developing a business plan.

Business Plan Development

There are five steps to write a business plan.
1. Format. Determine the type of process or format to use. There are three:

one. Write a business plan from scratch
b. Use planning software company or a model
c. Engage a consultant to help you write your business plan

Each of these alternatives, or formats has its advantages and disadvantages:

Business plan from scratch

The processing advantages of a business plan from scratch is two fold. First, is the least expensive way to go in the second place, although it takes a lot of work on your part, to become familiar with the data, for you to do all the research and compile data.

The disadvantages are, first of all, it's time, and secondly, if your business plan is being used to secure the financing of enterprises may not be in a format with which lenders are familiar. Do not underestimate this factor. Lenders are lazy. They want the facts presented in a format that makes it easy to see and understand.

Business software design or model

If you decide to use a model or business planning software, this will streamline the process of developing the business plan. One of the most comprehensive programs software templates are from Palo Software: http://www.paloalto.com/. Their software costs $ 99.95 for the standard version and $ 199.95 for the Pro version This platform is very powerful and can be used for a variety of business models, from very simple to more sophisticated plans that can be imagined.

There are free versions of business plans provided by www.score.org and on the Internet for business planning base. Just go to Google.com and search for "business plan for free." You should be aware that some of the models you'll find listed in this research may be insufficient for your needs, especially if you are trying to obtain financing.

Consultant services

Finally, if you decide to hire a consultant, there are three alternatives to consider.

or Non-profit organizations such as Chambers of Commerce, mentoring programs and community colleges Score.org
Paid or professionals such as CPA or a financial adviser
consultants or business plan living business plan writing. These consultants range in price from less than a thousand, to a maximum of 5-10000, depending on the sophistication of the plan.

2. Research. After deciding which method you will use to develop your business plan, the next step is to start your search. This research will include the following factors:

one. Competition. It 's important that you conduct a thorough study on the depth and scope of the competition, the strength of each competitor failed defenses and how you intend to exploit these weaknesses.
b. Pricing model. What margins are and what margins should be.
c. Real Estate. In many companies, the location is determined by the Main Stage (Location, Location, Location). If there is a significant relationship between success and real estate, you need to research this area extensively.
d. Features. If the company needs special equipment, and financing options may need to be considered separately, as well as delivery and installation.
and. Staffing. If the activity requires technical skills, what is the market price for their expertise and what is your recruitment strategy? Inadequate research and understanding in this area can bring a new activity knees very quickly.

3. The revenue and expenditure Models. Depending on the sophistication of the financial model and familiarity with Microsoft Office Excel and creating financial projections, this component may be necessary to put into a financial professional. The plans of the business model have preformatted spreadsheets of cash flows, income statement and balance sheets, all integrated into a presentation format in smooth business plan. However, depending on the complexity of the mode of financial, a great financial acumen may be necessary to successfully compile these data significantly.

4. Financing plan. The most useful tool to obtain financing is a well thought out business plan with fully developed hypotheses and research references. There are four main options for funding, with a fifth less common option:

one. Personal funds, ie, savings, pension funds and investment
b. Personal loans, ie, the home equity, family and friends, credit cards, unsecured bank loans
c. Equity, or third-party personal angel investors
d. Loans to companies by institutional lenders
and. Venture capital (usually reserved for high tech companies and concepts)

5. Exit Plan. Too often, this is not considered in the initial planning process. Still, it's probably one of the most important elements of a business plan, because without a successful exit, most of the effort in starting and managing a business is not to do this.

Write a business plan need not be a huge task, if approached systematically and methodically, following a time tested process .......