BUSINESS PLAN ---- STARTING A BUSINESS

Starting a business is an exciting, yet often overwhelming undertaking. 

After the initial exuberance of having that brilliant business idea pop into
your head, your next question is likely to be: Now what? 

Developing a business plan is the best next step. Business plans give
your company direction and enable you to apply for loans and approach
investors. 

Getting a business off the ground is a challenge, but learning how to

create a business plan isn’t. 

Here, we give you the scoop on what a business plan is, why you need
it, and how to create one.

What is a Business Plan?

A business plan is an overview of the business idea, as well as a
strategy for building and running it. It’s a formal, written document that
answers important questions about your company. 

A business plan includes your business’s:

 Overview and objectives

 Company description
 Products and services 
 Employment opportunities
 Marketing plan
 Competitive analysis
 Funding needs
 Operational guidelines 
  Structure 
 Appendices

Why Do You Need a Business Plan?

A business plan serves both internal and external stakeholders, and is
crucial to developing your budding company in multiple ways. 

A business plan can help with:

 Guidance: A business plan can act as a roadmap, helping you and your
team stay focused on your goals.
 Loans: Most banks need to review your business plan before they can
approve a small business loan. Your business plan shows the loan officer
you’re serious about your new venture and that you’ve considered the
challenges and risks involved.
 Lease: Similarly, a landlord may ask to see your business plan before
confirming a rental agreement. Commercial leases are typically for three to
five years, and landlords want tenants they believe will be in business for at
least that long.
 Investors: If you want to bring investors into your venture, you’ll need to
prove the viability of your company. A well-developed business plan shows
that you’ve done research on the market, your competition, and how to
succeed.
 Partners: Looking for a co-founder? In the same way a good business plan
will help you draw in investors, it can also help to attract potential partners.
.

Generating a business plan involves putting your ideas and research into
writing. 

Here’s how to create a business plan in three simple steps:

1. Come up With a Business Idea

In order to write a business plan, you need a winning business idea. If
you’re an aspiring entrepreneur still looking for an idea, start paying
attention to common problems you and the people around you
encounter. 
For example, you might notice your newlywed friends complaining about
how hard it is to find a photographer who doesn’t take cheesy
engagement photos. This problem could inspire you to start your own
photography business. 

Or, if your friends want to buy a home, but hate the idea of maintaining a
yard, perhaps you could launch a landscaping service. 

While you’re brainstorming, remember — successful businesses solve

problems. 

2. Do Your Research: The Elements of a Business Plan

Once you have a business idea you’re excited about, start conducting
research to flesh out your business plan. Use your business plan to
answer the questions others will have about your business and how it
will be successful. 

Then, organize your research into the following categories: 

Executive Summary
This section serves as a quick preview of what will follow, much like the
opening paragraph of an essay. 

Use the executive summary to quickly explain:

 What is your company’s mission?

 What are your products or services?
 What is your company’s story? 
 What are your plans for growth?
Here’s an example of an executive summary for a photography
business:

Beautiful Memories’ mission is to immortalize our clients’ wedding days by

offering photography services for engagements, rehearsal dinners, wedding
days, and other nuptial events. Kendra Smith started Beautiful Memories after
struggling to find full service wedding photographers in the Louisville area. We
plan on growing the business by expanding to new markets and adding
photographers to the team.
While the executive summary appears at the beginning of a business
plan, it’s easier to write it last. 

Company Overview
Think of the company overview as an elevator pitch. 
This is another opportunity to succinctly answer key questions that will
be elaborated on later, such as: 

 What will the business do? 

 What problems will it solve?
 Who is your ideal customer?
 How are you different from the competition?

Products and Services 

Use this section to expand on your business model, answering questions
such as:

 What will the company sell? 

 How will the company make money off of those products or services? 
 What is your pricing model? Be specific.
 How does your pricing compare to what your competitors charge?

Market Opportunity
Those reading your business plan need to know why your business will
be successful. Do the necessary market research to identify your
company’s viability here. 

Answer questions such as:

 What is the size of your target market? 

 Who is your ideal customer? 
 What’s your potential for revenue? 
 Who is your competition? 
 How will you set yourself apart? 

Marketing Plan 
Here is where you need to explain how you’ll reach your customers. Don’t
forget to include digital marketing tools like a website, a social media
presence, and an email marketing strategy.
Answer questions such as:

 How will you sell your products or services?

o Will you sell directly to consumers or to business?
o Will your products be sold individually or wholesale?
o If you choose a third party reseller, what kinds of retail outlets will you
target?
 What kind of advertising efforts will you focus on?

Operational Plan
Parse out company logistics in this section. Detail as much as you can
about how you intend to run your business. 

Answer questions such as:

  How will products be manufactured? 
 Where will your offices/retail locations be? 
 What kind of a staff do you need? 
 How do you plan to expand the business over time?

Finances
Investors and loan officers will be particularly interested in the financial
section of your business plan. Be thorough in your research and
planning.

Answer questions such as:

 What investments do you already have?

 How much more funding do you need? 
 What are your current account balances? 
 What is your sales forecast?
Once you’ve thoroughly answered the most important questions about
your proposed business, you’ve essentially created a business plan. All
that’s left is to polish it.

3. Apply the Finishing Touches to Your Business Plan

After you’ve written your business plan, go over it with a fine toothed
comb. Typos and grammatical errors will make you and your potential
business seem unprofessional. It’s a good idea to give it to a friend who
can look at it with fresh eyes.

You should also eliminate any extraneous or redundant content.

Investors and lenders don’t want to read a book about your business. Be
respectful of their time and present them with a business plan that
is concise and clear.
Developing a business plan is the first step on the exciting road to
entrepreneurship. When you learn how to create a business plan, you
unlock the power to secure investments, loans, and leases for your
company. You also build an internal roadmap to success for your
business.

Creating a website for your company is the logical next step in sharing
your budding idea with the world. Check out Bluehost’s website hosting
plans to realize your vision.