The Components of A Business Plan

Do you know and understand the components of a business plan?

Have you a business plan for the business you are planning to start? A business plan is not just a thought in your head, or a few words scribbled on a piece of paper. It's a solid plan of action written and presented in a logical way, which takes you step by step from the inception of your business to it becoming up and running.

If you don't, then go out and do some research. Ask your local government business agency for advice, ask your bank, use the Internet, ask any of your friends who are in business for their help. There is plenty of information and help out there, don't rush your business plan. Treat it as though you were studying to take an examination and learn along the way.

Do remember a business plan for your business will be different from anyone else's. So don't copy word-for-word from someone else, in a similar business to you, be your own master and begin as you mean to go on.

A plan should be understandable and concise and give a good idea of its main contents even after browsing the main points. Format: headings, plenty of white space, and illustrations including summarizing. Main points should be bulleted to show up in a business plan as they do in a business presentation. The right length for a plan will depend on its nature and purpose.

Avoid being overly optimistic, and be reasonable in predicting capital requirements, deadlines, sales, and profitability. Very few business plans anticipate how much money and time will be eventually required.

Every major bank and government business agency has some form of printed, or online business form you can use to get an idea of what information is required for starting your enterprise.

Posted in: Business