How to Craft a Business Plan When Starting a Business

According to Melvin Feller MA and the SBA, 7

out of 10 businesses fail within the first 10 years
of business. The reasons vary; however, Melvin
Feller MA soundly believes and points out that
most of them are really due to poor planning.

Melvin Feller MA, also a business owner of

several companies points out that most business
Melvin Feller Explains the Importance of a Business Plan.
owners fail to understand the importance of a
business plan and therefore never really actually
create one. Most of all even understand that a business plan is to help the business owner how to
go about business and avoid potential problems in operating their business.

Creating a business plan is an important process. It will serve to outline the main purpose of your
business, structure, financing, and advantages over other market competitors. A solid business
plan can be used as a framework for your company’s mission and serves as support when it
comes time to apply for financing.

A business plan will give you an explicit definition of both your business idea and premise.
Moreover, it will serve to illustrate possible opportunities, and equally, issues, both of which you
may not be aware of before you start working on the plan. In addition, it serves as a sort of road
map, helping you come up with a clear set of goals for your business and something to measure
your success against.

The following are some important topics to

consider including in a business plan: Cover Page:
Business Name, Date, and Contract Information

Executive Summary: Description of the product or

service that your company will sell; to whom the
product or service will be sold to; what market need
your company solves; your company’s competitive
advantage; and finally, if seeking capital, identify
how much capital you are seeking and for what
purpose(s).
Melvin Feller Understands Business Plans.
Business Overview: Description of the company’s business, legal, and leadership structure.
State your company’s mission and vision. Detail your company’s timeline/history or startup plan.

Management and Operations Plan: Name the company’s owners and management team
(include their resumes). Discuss the hiring needs, hiring process and the company’s management
approach. Follow the management plan with details on the company’s operations. Include
information on the day/time you are open and if you have an e-commerce presence. Include a list
of the licenses and permits that will be obtained.

If a start-up, provide a time frame for building, producing and generating the business. Include
breakdown of any risk and explain why and how that will be overcome.

Products & Services: In this section, go into more detail on the products and services you will
be offering. Include information on the prices and costs of goods sold.

Competition and Marketing: In this section expand on the market need you are fulfilling, your
company’s competition and your company’s competitive advantage. Also elaborate on market
trends that impact your company and its operations. Define your target customer (e.g.
consumers, businesses, government) and any related certifications that might be useful and
relevant (e.g. HUB, WBE etc.).

Once you have defined your company’s target

customer, elaborate on your marketing plan.
Explain how the product will be marketed so to
demonstrate a competitive edge over the other
similar product or service providers in the industry.
Explain the expenses involved in marketing the
product and services. Detail the market in which
you will be working/servicing.
Melvin Feller Explains Business Plan Components.
Strategic Financial Plan: Outline how much
money the business will need and where the support will come from. Include a breakdown of the
monthly budget and cash flow for the first year. Include detailed information on the current
market, projected customer demands, pricing strategy, available financial support and anticipated
financial support.

Include costs associated with development, production, office space, employee salaries,
equipment purchase, etc. Finally, include anticipated timeline for marketing and goals for
profitability.
 Note: If your business is seeking financing then you
will probably be asked to provide income statements
demonstrating sound financial accountability.
Provide a stated goal for profitability and what the
return on investment will be. If your company is a
start-up and applying for funding, most institutions
will want to see personal financial statements.

Melvin Feller Understands Success in Business. For Bonus Points: Just like a business plan, it is
important to have an ‘elevator pitch’. Whether
pitching to potential investors or to a potential client, a strong and concise pitch is a good tool to
have. Important aspects to consider addressing include the problem/gap you are addressing,
target market, competitive advantage and the stage of your business. There are many programs
throughout the state that can help business owners craft, refine and practice their pitch.