10 Steps to a Business Plan For Miami Business Owner
Many entrepreneurs create business plans only when a bank or potential investor forces them to create one. But a business plan can be an effective management tool to help any business with tactical and strategic decision making. A carefully crafted business plan includes a concise one-to-two page executive summary followed by detailed descriptions, generally 25 to 60 pages, of the business and marketing strategies, management information and financial data. The plan should include detailed supporting documents, such as three to five years’ tax returns, lease agreements and other legal forms and documents.
10 Steps to a Business Plan
» Use a printed 8 ½” x 11” format. Use a loose-leaf binder to package the plan and to facilitate any revisions.» Begin with a cover sheet that includes the name, location and telephone number of the business and the name of the person who wrote the business plan.» Keep it short and crisp without compromising the description of the venture. Include a one- or two-page executive summary with an overview of the most important issues in the plan — including the business’s niche, marketing, management experience and finances.
» Organize it with a table of contents that shows logically arranged sections and appendices.
» Identify a target market in the plan. Indicate whether the market is growing, steady or shrinking. Provide extensive details about competitors, including their strength, weaknesses, estimated market share and other details. Include your pricing strategy. Finally, explain how you plan to promote the business.
» Explain the benefits of your product or service to the user or customer. Describe how it is unique and its appeal to customers. Include information about your business’s location, current and future space requirements and area demographics.
» Show that you have an effective management team. Detail the backgrounds of executives, their qualifications, the need for additional management talent and how the owner plans to attract personnel.
» Focus the plan toward the future. Attempt to develop forecasts of industry trends over the next three to five years.
» Highlight current and potential problems and demonstrate how they will be overcome. This will enhance your credibility.
» Develop a financial plan that includes a capital equipment list, a balance sheet, income statements for three years (or pro-forma income projections for a new business), cash flow statements, break-even analysis and loan applications.