Create a business plan with the help of SCORE

The best way to enhance your chance of success is to plan and follow through on your planning.

Why should you go to the trouble of creating a written business plan? There are three major reasons:

The process of putting a business plan together, including the thought you put in before beginning to write it, forces you to take an objective, critical, unemotional look at your business project in its entirety.
The finished product- your business plan - is an operating tool which, if properly used, will help you manage your business and work effectively towards its success.
The completed business plan communicates your ideas to others and provides the basis for your financing proposal.

The importance of planning cannot be overemphasized. By taking an objective look at your business you can identify areas of weakness and strength, pinpoint needs you might otherwise overlook, spot opportunities early and begin planning how you can best achieve your business goals. Your business plan also helps you see problems before they grow large and helps you identify their source - thus suggesting ways to solve them. Your business plan will even help you avoided some problems altogether.

Your SCORE counselor will help you break apart your business plan and give you guidance in its creation. However, YOU must complete your business. But remember, help is just a phone call (or email) away.

Here are twelve points your business plan should include. These are ment to help you get started thinking about your plan. Not to be use solely to create your plan.

EXECUTIVE SUMMARY This includes company's activities, management and objectives, distinguishing features of your products/services, financial projections, amount of money you seek and for what purpose.
DESCRIPTION OF YOUR BUSINESS What does your business offer, what is the industries history, and what is its anticipated future.
FEATURES OF YOUR PRODUCT/SERVICES Including product/service description, competitive advantage and market niche, and future potential. Include sample products or sales literature.
MARKET RESEARCH AND ANALYSIS Describe customers and markets, the market size and trends, and your competition.
ESTIMATED MARKET SHARE AND SALES What are your marketing and promotion plans. Include your business and strategy, pricing, how will you sell your product/service.
DESIGN AND DEVELOPMENT PLANS Include development status, what are your difficulties and risks, and costs.
OPERATIONS PLANS Include your delivery process, geographic location, facilities and improvements, labor force, availability of materials and supplies and your dependence on critical suppliers.
MANAGEMENT TEAM Explain your organization, key management personnel, management strengths and weaknesses, board of directors, and professionals retained - accountant, attorney.
OVERALL SCHEDULE Include timing of critical activities before opening (obtaining funds, order supplies, hire employees, start operation) and timing of critical activities after opening (expansion, product / service extension)
CRITICAL RISKS AND PROBLEMS Explain how you will respond to working capital shortage, price cutting by competition, unfavorable industry-wide trends, difficulty obtaining supplies, and lack of trained labor.
FINANCIAL PLANS Will need to include three years historical financial statements, profit and loss forecast for three years, cash flow projections for three years, and outside accountant and planned involvement
OWNERSHIP STRUCTURE Who are the owners and how much will they invest and shareholder agreements.