Business Plans

Guide to Creating a Great Business Plan

Learn how to write a business plan that puts you in business
By Frances Sharpe

	Writing a Business Plan Start with a sample business plan or business plan template Use business plan software to help you clarify and organize your ideas. Seek advice on how to write a business plan from online communities or business startup advisors

A business plan is like a roadmap that shows where your business is going and how it's going to get there. This detailed look at where your business is heading can do much more for your business than simply provide you with a route to follow. You can use it to convey your vision to potential investors, attract key employees, prospect for new business, or deal with suppliers. When writing a business plan, the following components are needed:

1. Description of the business.
2. Marketing Information.
3. Financial information.
4. Management information.

Action Steps for Writing a Business Plan

The best contacts and resources to help you get it done

Let business plan software do it for you Business plan software shows you how to write a business plan by breaking down the process into simple steps.

I recommend:  Palo Alto Software Business Plan Pro has established a firm position in the business plan software game, and is available in instant download for under $100 in standard edition. You get a wide selection of business plan templates, a large sample business plan library, thousands of industry profiles, and can import financial data from QuickBooks. Find more business plan software at Business.com.

Line up what you need – make a business plan template Before you start writing a business plan, know what a professionally done business plan is and what needs to be included, then create a business plan template to fit your needs.

I recommend:  Check out the Work.com Guide to Sample Business Plans for great sources of free and low-cost business plans that make great business plan templates. Also, CIT Small Business Lending Corporation has developed an online tutorial to help you understand the ABCs of of writing a business plan.

Find the right sample business plan Success leaves clues, so it's worthwhile to look for a sample business plan you can use as a model.

I recommend:  Find hundreds of real business plans at Business Plan Archive or check out the Small Business Administration (SBA) or BusinessPlans.com for for a sample business plan from any type of business, including Internet-based, service, and retail ventures. There are also plenty of business plan consultants out there ready to show you how to write a business plan.

Leave room for the summary in business plan templates Part 1 of business plan templates should be the 'executive summary.' Here you summarize your entire plan and explain why your company will succeed. This is the most important part of your entire plan. Investors may decide whether or not to back your business based solely on your executive summary.

I recommend:  Even though the executive summary comes first, don't write it until you've finished the rest of your plan. Find out what goes into a successful executive summary at American Express Open for Small Business and at the SBA.

Make it the right length If your plan is too long, nobody will wade through it; if it's too short, it will seem like you haven't really thought through your venture. A good sample business plan should help you set the length limit on your business plan template.

I recommend:  See how long a business plan should be at Bplans.com, the free help site from business plan software vendor Palo Alto.

Get help on how to write a business plan To make sure your plan has the right elements and looks professional, get personal advice and direction on finding the right business plan templates.

I recommend:  The Guide to Resources for Starting a Business can hook you up with all of the help you need to get your business going, including including top online communities on how to write a business plan, and free business counseling. Among the resources offered for new businesses at Business.com are free, downloadable business plan templates.

Don't forget about your financial forms If you want to get results with your plan, make sure your financial forms look professional and have the correct information.

I recommend:  The SBA offers free, professional-looking financial forms that you can add to your business plan template.

Tips & Tactics on How to Write a Business Plan

Helpful advice for making the most of this Guide

• If you're using your business plan to arrange bank financing, remember the four C's of credit: character, cash flow, capital, and collateral.
• After you write your plan, keep updating the information so the next time you need to use it, it will be ready to go.