Before you can write up your business plan, you need to do some preparatory work. Mostly, this involves you, a pad and pencil, and some quiet time to think and strategize. In my first article in this series, we examined the importance of having a business plan and a strategy. And the second article identified 3 steps to get you started as you formulate your plan. In a nutshell, these are the core questions you want to be able to answer:

• What service or product do you want to provide?
• Is there a demand for your service or product?
• Who are the potential customers that you want to attract?
• How will you find them?
• What will your message be?

And finally,

• What is your financial requirement over a 3-5 year period?
• How will you fund it?

When you have a firm vision for your business, it’s critical that you invest some time developing and writing the formal business plan. If you’re not comfortable as a technical writer, hire it out. But make sure that it’s your vision, your homework that’s being captured in the plan. 

There are numerous acceptable styles you can use for your business plan; and the sections may vary depending on the type of business you’re in or the complexity of what you are offering.

The Small Business Administration (SBA), a federal government agency, is an excellent resource for entrepreneurs and solo-preneurs. Their website can be a wonderful starting place for you. They also have an excellent outline to consider when designing your business plan.

A second source for examples of business plans is Bplans.com, a website operated by Palo Alto Software, Inc. I’m not endorsing their software products, as I have not used or reviewed the products. However, the website offers a wealth of support information and business plan examples that you can use as a guide.

Here is a basic outline of the sections you might want in a Business Plan.

Cover Sheet

Executive Summary – overview at the high-level; not too many details, but enough so that the reader understands your vision and approach to success.

Company Summary – outlining the services and products you will offer

Marketing Summary – describing in detail your geographic market(s), your customers; include demographics and supporting materials to back you up; plans on how to reach them.

Financial Summary – showing startup and one year requirements, then a pro-forma, projecting out an additional 4 years.

Supporting Documents – all drawings, graphics and resources to back up your plan

This document will be quite lengthy when it’s completed. Don’t let the huge task be daunting. During your drafting stage, simply take one section at a time and put together as much information as you can. It will go through several revisions and fine-tuning before you are ready to present the final plan to the bank or to your board of advisors, stockholders, etc.

A business plan is one of the most important tools you will use in your business. It will become your guide in all that you do over the next several years. Will you adjust it as you go? Absolutely. Will you regret the effort you put into it? Never.