How To Write a Business Plan

Why and How to Write a Business Plan..................................................................1

What Kind of Business Plan Do You Need?........................................................................... 3

Why Write a Business Plan?............................................................................................................ 5

Business Plans and Forms You’ll Find in This Book.......................................................... 8

How to Use This Book to Write Your Business Plan....................................................... 9

Getting Started on Your Business Plan.................................................................................11

Why This Book Is for You...............................................................................................................12

2 Do You Really Want to Own a Business?............................................................. 15

Identifying Your Personal Goals.................................................................................................16

Self-Evaluation Exercises.................................................................................................................17

How to Use the Self-Evaluation Checklist...........................................................................23

Reality Check: Banker’s Analysis................................................................................................24

3 Choosing the Right Business............................................................................................27

Know Your Business..........................................................................................................................28

Be Sure You Like Your Business..................................................................................................30

Describe Your Business....................................................................................................................31

Taste, Trends, and Technology: How Will the Future Affect

Your Business?................................................................................................................................40

Break-Even Analysis: Will Your Business Make Money?..............................................45

What You Have Accomplished...................................................................................................61

Potential Sources of Money to Start or Expand

Your Small Business..................................................................................................................63

Ways to Raise Money........................................................................................................................65

Common Money Sources to Start or Expand a Business..........................................76

Now That You’ve Proven Yourself, How About Expanding?....................................91

If No One Will Finance Your Business, Try Again...........................................................94

Secondary Sources of Financing for Start-Ups or Expansions................................95

Conclusion...............................................................................................................................................98

5 Your R.sum. and Financial Statement.................................................................99

Draft Your Business Accomplishment R.sum.............................................................100

Draft Your Personal Financial Statement......................................................................... 110

6 Your Profit and Loss Forecast.......................................................................................129

What Is a Profit and Loss Forecast?...................................................................................... 131

Determine Your Average Cost of Sales............................................................................... 132

Complete Your Profit and Loss Forecast........................................................................... 136

Review Your Profit and Loss Forecast................................................................................. 152

How Your Profit and Loss Forecast Relates to Your Income Tax Return....... 153

7 Your Cash Flow Forecast and Capital Spending Plan...........................155

What Is a Cash Flow Forecast?.................................................................................................156

Prepare Your Capital Spending Plan.................................................................................... 157

Prepare Your Cash Flow Forecast.......................................................................................... 161

Required Investment for Your Business............................................................................. 173

Check for Trouble............................................................................................................................. 174

8 Write Your Marketing and Personnel Plans...................................................179

Marketing Plan...................................................................................................................................180

Personnel Plan....................................................................................................................................196