How to Write a Business Plan contains detailed forms and step-by-step instructions designed to help you prepare a well-thought-out, well-organized plan. But this book does more than just take you through the steps of writing a business plan. You’ll find parts of her plan presented in different chapters as we discuss the various components of a complete business plan.
A business plan is a written statement that describes and analyzes your business and gives detailed projections about its future. A business plan also covers the financial aspects of starting or expanding your business—how much money you need and how you’ll pay it back. Here are some of the specific and immediate benefits you will derive from writing your business plan.
Most lenders or investors require a written business plan before they will consider your proposal seriously. Writing a business plan with this book teaches you where money comes from and where it goes.
Introduction and Request for Funds
If you’re like most people, chances are your business will pass some tests easily and fail some of the others. Keep in mind that you’re honestly trying to decide if your business will be profitable. If you have employees or partners, you’ll want to make similar allowances for them.
If you’re having great difficulty, the chances are that you need to learn more about your business. My general rule is that you should borrow less than half of the money you need, especially if you’re starting a new business. If you’re in one of the designated redevelopment areas, this program bears looking into.
It’s the amount of money that remains after you’ve paid your direct costs of the products sold. After all, one of the main reasons for doing a business plan is to decide how much money you’ll need to finance your business. Add up all the items you’ve listed to get an estimate of the cash you need to open your business.
You can skip the rest of this chapter if you’re not planning to run a retail business. Give your potential backer a copy of the business plan after you’ve met with her. If you’re considering expanding, first take a long look at your business and your personal goals.
You’ll be wise to make these tough decisions promptly if you keep losing money. Or, if you’re lucky, you may find someone willing to buy your business and try to turn it around. It’s worth investigating if you’re thinking about a sale, especially if you have a lot of inventory.
If you own your business as a sole proprietor, you’ll need to declare personal bankruptcy. If you are thinking about filing for bankruptcy, you’ll need to research your options. If you’re not happy with the professionals in your area, I may be able to help.
They can be an excellent choice if you lack a basic skill you’ll need in your business.
My Experience and Background
This is a request for a loan of $6,000 to establish the Central Personnel Agency as my sole proprietorship. Central Personnel will specialize in providing South City employers with secretarial, clerical, and computer (word processing) skilled personnel. I am presently a junior partner in Mid-Mountain Personnel Services, a similar type of personnel agency with headquarters in North City.
The $6,000 loan, which I am hereby requesting, will enable me to open my own employment agency, make my own business decisions, and substantially increase my income. Jackie McCabe (dba Mid-Mountain Personnel Agency), to some extent, even though her headquarters is, and will remain, in North City. She supports them, has agreed to allow me to take over the lease on the South City Office, and is enthusiastic about working out a referral plan under which we will work.
My back- ground experience in the personnel agency field, and past record of success, support my view that I will succeed. As part of terminating our partnership agreement, Jackie and I have agreed that I will retain the lease on the present Mid-Mountain office in South City. In addition, we have signed a written agreement (available upon request) which provides that we will share all fees and commissions when one of us places an employee with an employer in the other’s primary market area.
Having made this agreement, I need accomplish only two more tasks before I can open my business. I expect to do this in January with little difficulty, as I have received top grades in the preparatory course given by North State Community College.
Resume: Eleanor “Ellie” Buss
Business Description of Central Personnel Agency
Central Personnel Agency Marketing Plan
I also intend to provide free seminars of my own on “How to Find a Satisfying Job.” Finally, I will regularly mail a brief newsletter to all major area employers listing all the job areas for which I have qualified applicants. South City has three active personnel agencies in addition to the branch of Mid- Mountain, which I now run and which will close as part of the opening of my new business. Recently, Bill’s has suffered from their own high employee turnover, largely because it is run by an absentee owner.
At Mid-Mountain, I have already demonstrated that my personal approach to the needs of both employers and employees as opposed to Bill’s high-volume approach is welcomed by the South City marketplace. Eventually, Strictly Business will be a competitor as I de- velop more midlevel management clients, but initially, they will not be a problem as our markets are so different. Woodshaft spends about $1,000 per month on advertising, but does little work with community organizations such as the South City Women’s Resource Center.
The owner’s husband died recently and as an understandable result, the business seems to lack energy. I believe that the Woodshaft Organization will offer the most competition over the next several years. South City has a large number of the type of jobs I specialize in, with plenty of growth potential.
South City’s growth as a regional financial and market center will ensure commensurate growth in job openings and should encourage the trend for women to reenter the job market. My approach to counseling both employers and employ- ees is unique locally and I expect a continuing growth from my commitment to individual service, because this approach saves everyone time and expense in the long run. My new downtown location (the office I will take over from Mid-Mountain) is already established, convenient, and close to the Women’s Resource Center, with whom I work closely.
Note: If you plan a large service business and need to borrow more money, it would be wise to back up this section with growth projection statistics.
Financial Projections
Personal Financial Statement: Eleanor “Ellie” Buss
Business Risk Analysis
Capital Spending Plan
Personal Goals
