How to Write, Make, Or Create a Business Plan

The first step in starting a business is making a business plan. What is a business plan? A business plan is just what it sounds like. It is a plan (usually written out in detail) that explains how the business will operate, how it will generate income, etc.

It can be as basic as a general outline, or it can be as detailed as projecting estimated costs, revenues, etc.

Why should you make a business plan? Business plans are great because it helps you see your idea on paper. It helps you to stay focused, estimate revenues and expenses, and more. After all, business is very similar to war.  Would you plan on going into a battle with an enemy without a plan for you or your soldiers? Of course not! Business is the exact same. You need a plan in order to survive the fierce competition & struggles that a new business will face.

Another reason why you will want to make a business plan is that it will help if you need to obtain a business loan (or other financing) from a bank or other lender. Most lenders will expect to see a solid & professional looking idea on paper with numbers to back up your plan.  This is sometimes required before you will get approved for a loan.

How to Make or Write a Business Plan

A typical business plan can be anywhere from 1-100 pages long. Again, if you are making a business plan for your own personal benefit, it can be general and only a few pages long. If you are making a business plan to try to convince a lender to give you a business loan, you will probably want to be more detailed and specific.

Typically, your business plan will be printed out on paper. You can use a word processor and/or spreadsheet application to make your business plan. Also, you could always prepare a PowerPoint presentation to supplement additional information.

Before you make your business plan, you will want to consider things such as: your business' legal structure, how you plan to make money, your expenses, location of your business, etc.

What Should Your Business Plan Include?

There are several things you will want to include in your business plan. Here are a few of the major points you will want to include:

• The objectives, goals, and mission of the business

• How the business will generate revenue or income (itemized)

• The types of expenses the business will incur (preferably in itemized format).

• The legal structure of the business

• Rundown of startup costs (itemized)

• Sources of any suppliers the business will use

• List of employees involved in the business (managers, president, owners, partners, workers, etc.)

• The location of your business & more

These things will help to provide a solid framework for the business so the business will have a greater chance of succeeding.

Also don't forget that business plans can change. During the "startup" phase of the business, many entrepreneurs will experiment with different ways of making money.  They then usually will focus on the methods that are working best.

For example, many business that are now very large stared out doing something completely different. Godaddy.com was experimenting with several things before it went into the domain & hosting business. Other companies have followed similar patterns.

Choosing a Legal Structure for Business

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