Hillary B., Writing Center tutor & writing fellow
Please keep in mind that these are only general guidelines; always defer to your professor’s specifications for a given assignment. If you have any questions about the content represented here, please contact the Writing Centers so that we can address them for you.
Introduction
The first step in building a successful business is composing a business plan. Business plans should be written for businesses that are for-profit as well as non-profit organizations. Business plans help investors make the necessary decisions to lend assistance, especially financial assistance. Anything of monetary value can be given to your business as an investment, so the assistance that an investor can give you will depend on who the investor is. Business plans also help you focus on what you want to accomplish in your business venture. Business plans are highly detailed and written in a straightforward manner in the third-person; so, for example, if your business is called Lustrous Locks Salon, you would say, “Lustrous Locks Salon holds customer satisfaction…” Keep in mind that business plans should be considered a living document; that is, it should be rewritten and updated on a regular basis to meet the current demands of your business.
Furthermore, business plans are very similar to research papers and should be organized just as rigorously. Your business plan must include an introduction, which is the executive summary, followed by the mission statement. Next, you need to include data, which is the market analysis, from as many sources as possible and cite the sources for these data as you would in a formal paper. These sources range from articles written in business journals to conversations with local businesspersons in your industry of choice. In fact, including as much data as necessary will improve your understanding of your industry and ensure your business’s continued success. Following this should be your budget, including your projected start-up costs, including possible profits and losses and any capital or collateral you will be putting into the project yourself. The capital or collateral would be your own investment into the business, such as cash you will put into it or any other materials that are relevant to your business that you have access to that can be given to your business. Then, a summary of all the information, a shortened version of the sales pitch from the executive summary and the goals mentioned in the mission statement. Finally, you should include a sincere thank you to the readers who may become your first investors. Examples of business plans can be found via the links at the bottom of this page under “Sample Business Plans.”
Commonly Used Terms
Executive Summary: This is the introduction to your business plan. It should immediately capture the reader by highlighting the ultimate goals of your business. Here, you sell the idea of your business. You should include the business name, the location, the products or service you intend to sell, the purpose of your plan and future projections for the business. There is an opportunity in this summary to briefly speak as the individual by informing the reader of any past successes with similar projects and your enthusiasm in beginning this new venture. That said, be sure to keep it concise and clear.
Market Analysis: The market analysis will address to whom, when, where, how and why are you selling your product or service. Having a well-researched market analysis will improve the chances of receiving funding for the initial start up of your business as well as understanding how you may have to change certain aspects of the business as the world around you changes as well. Before you can sell anything to the public, you have to know who that public will be. Not only do you identify your buying public here and their buying habits, but also your competition, whether it is local, national or global. Include how your business is expected to meet and exceed the performance of the competition.
Budget: Your budget must be an itemized list of your start-up costs and operating expenses. Knowing how much you need to begin operating your business will require research. Some of this knowledge may be based on information you gather through your market research depending on the product or service you intend to sell. Remember to include line items such as payroll, even if you are your only employee. The projected costs shown in your budget will possibly be the most important part of your business plan.
Regulations: Laws on local, national and global scale may have serious impact on how you do business. Understanding how these laws will affect your business should be included in your business plan under market analysis.
For More Information
What is a Business Plan? is a website dedicated to giving brief overviews of how to write a business plan, how to start a business and how to keep a business going. They also sell software appropriate to the services offered.
Write a Business Plan is the website for The United States Small Business Administration. SBA also includes information on how to plan for closing, selling or transferring ownership of your business.
Sample Business Plans
BPlans.com has dozens of examples of business plans categorized into the products or services offered.
Centers for Business Planning also has examples of business plans from various companies.
