Читать книгу Entrepreneurial Itch - David Trahair - Страница 27

Once you have decided what product or service you are going to offer, it’s important to continue the planning process. Put your thoughts down on paper in the form of a business plan. This does not have to be a 100-page document. It could be an informal summary of your intentions for the business that fills less than a dozen pages.

A business plan is also not set in stone. Most of the people I know who created a formal business plan did not stick to it. Many did not even bother to update it after they got the business up and running. The point is that it’s the best place to start. The more time and effort you spend documenting what it is that you are trying to accomplish, the greater your chances of success. You may even find, during this process, that you come up with a better idea than the original product or service you had decided on. Or you might see additional opportunities arising from your original idea.

Besides describing how you intend to market your product or service, the business plan should include the following information:

• A description of the products or services

• A summary of the start-up costs

• A projection of sales and expenses for at least the first few years

• An analysis of your own strengths and weaknesses — will you need help with some aspects of the business?

• An analysis of the industry — is it steady, declining, or growing?

• A marketing strategy — how do you plan to find customers or clients?

If you are planning to establish a large entity that will require external financing from banks or possibly investors, your business plan will need to be formal and detailed. You will probably require the assistance of a lawyer, an accountant, and possibly a business adviser. It will be difficult to obtain financing if you have not researched and documented all the details of how the business will work. (Keep in mind that no matter how well-written a business plan may be, you may still be turned down by the bank. See Chapter 5 for more information about financing your business.)

It’s easy to find sample business plans on the Internet. I just Googled “business plan templates” and got over 42 million hits. Look for examples of award-winning plans. There are many available, and some may even deal with your specific product or service.

Elements of a business plan

A good business plan is concise and written in plain language. It contains charts, illustrations, and graphs placed appropriately. It uses realistic assumptions about future income and expenses and provides detailed information in appendixes.

It should include the following basic components:

• Cover page. Include the company name, address, telephone and fax numbers, website URL, and email address, as well as the names of key company contacts.

• Table of contents. Summarize the major sections of the plan.

• Executive summary. Write a brief (one- or two-page) summary of the major points in the plan.

• Company summary. Include the company’s goals and its objectives as well as the amount of financing required.

• Management. Summarize the experience and qualifications of all key people who will be involved.

• Marketing strategy. Outline your market research, the strategy for attracting customers or clients, and the pricing strategy (i.e., will your products/services be inexpensive or premium priced?).

• Financial projections. Set out what start-up costs you will incur, and include five-year income-and-expense projections and a loan repayment plan.

• Advisers. Include the contact information of your lawyer, accountant, and other advisers.

• Conclusion. Summarize your goals and objectives, the required financing, and the reasons why this is a good investment.

• Appendixes. Include detailed management résumés, any product illustrations or literature, any financial statements, detailed cash-flow forecasts, and any major customers or clients you may have.