Preparing a Business Plan

What is a Business Plan?

It is a written explanation about the business, its products and services, its customers, how it will operate, and who is managing it.

A business plan also outlines the financial needs and resources of the business.

What is the purpose of a Business Plan?

A business plan. . .

guides the development and management of the business.
serves as a roadmap to start, expand, or re-structure a business.
helps obtain outside funding.
can be presented to investors, lenders, and employees.

Here is an Overview of a Business Plan and information about Cash Flow Projections.

Why do all this planning? 

Many businesses start and close each year, for a number of reasons. One of the main reasons for premature business closure is that owners do not have sufficient funds to carry a business through  early, slow periods until they gain sufficient market share. Owners need to plan ahead in order to predict adequate levels of funding.

To avoid this problem, you must plan to address four financial questions about your business:

1. How much money do I have available to put into the business?
2. How much money will I need to start my business?
3. How much money will I need to stay in business?
4. How much revenue can I expect to add to the business?