Planning your business: a business plan provides a guide.

• Position: Indiana: small: business reference: guide

No matter what size business you choose to launch, taking the time to draft a business plan is one of the most important steps. The following outline of a typical business plan can serve as a guide. You can adapt it to your specific business. Breaking down the plan into several components helps make drafting it a more manageable task.

Introduction

* Give a detailed description of the business and its goals.

* Discuss the ownership of the business and the legal structure.

* List the skills and experience you bring to the business.

* Discuss the advantages you and your business have over your competitors

Marketing

* Discuss the products/services offered.

* Identify the customer demand for your product/service.

* Identify your market, its size and locations.

* Explain how your product/service will be advertised and marketed.

* Explain the pricing strategy.

Financial Management

* Explain your source and the amount of initial equity capital.

* Develop a monthly operating budget for the first year.

* Develop an expected return on investment and monthly cash flow for the first year.

* Provide projected income statements and balance sheets for a two-year period.

* Discuss your breakeven point.

* Explain your personal balance sheet and method of compensation.

* Discuss who will maintain your accounting records and how they will be kept.

* Provide"what if"statements that address alternative approaches to any problem that may develop.

Operations

* Explain how the business will be managed on a day-to-day basis.

* Discuss hiring and personnel procedures.

* Discuss...