Research / Business Plan


Before you start a business you need to do your homework, which is to say you need to do a lot of research. You need to research your market, target customers, your competition and everything else related to your business. This is the place that many people will cut corners or don’t even do any research at all. Depending on your business and if you are trying to get a loan or raise money from investors will determine how in depth you need to make your business plan. Many people will start a business without a plan, but just like anything if you don’t have a plan you will miss a lot of important things and why would you want to set your business up for failure.

I have listed the items in the order that you will need to think about when you are writing your business plan. You will want to do all of this research before starting your business. There some sections like marketing and financials that you will want to continue researching and studying to keep your competitive edge.

Executive Summary
• What is the business and why is it unique
• Where will your business be located
• Who owns the business and why are they qualified
• Who are your customers and why will they buy from you
• If you are raising money how much is needed
• Who is your competition and why is your business better

Statement of purpose
• State the purpose of the business plan
• If you are using the plan to obtain financing, include how much money

Mission Statement
• Create the culture of your business. This will reflect the values and attitude of your company
• Should identify who you are, what your product/service is, your customers, how you will serve your customers, where you do business and why are you in business

Business Description
• What your business is
• Details of what legal form it takes
• When it will be open, address hours of operation, etc
• Why it will be successful and your personal and professional goals

Management / Operating Plan
• Who will do what, how and when
• Why you are qualified to run this business
• Key people and their roles or how they will support you

Marketing
• Description of customer profile
• Size of target market
• Industry trends and information
• Main competitors, why you are different or better
• Price
• Location, why your location is good for your market
• Promotion, Advertising, PR, etc.
• Methods of sales and distribution

Financials
• Sources and uses of cash
• Start-up cost
• Breakeven analysis
• Explain how your financial projections demonstrate the expected success of your business
• 1st year cash flow projections by month
• Line item descriptions for the one year cash flow
• 3 year cash flow projections
• Historical financial statements for existing businesses