Writing a business plan can be a challenging task, so it pays to take the time to prepare with these 10 basic steps:
1. Ask yourself why you are writing this business plan? Is it to raise capital or to provide guidance for your business operations?
2. List your startup goals and where you see your business in three to five years.
3. Clearly define the target audience.
4. Write a table of contents so you know exactly what sections you need for your research and find supporting data.
5. Make a list of the data you need to research. For example, you need statistics about your target audience, competitors, market, etc.
6. List your most useful research resources, such as Hoovers, D&B, or AllBusiness.com.
7. Make a list of your board of directors. If you are unsure about someone's eligibility, it's time to verify that they are eligible. Gather background information about each person. See Focus on Key People in Your Business Plan for more information on what to look for.
8. Start compiling all of your key financial documents. You can later determine which documents will be used in your business plan.
9. Read sample business plans. Since there are countless business plans out there, there is no need to invent something completely new. Look for business plans for businesses that are similar to yours to use as examples. You can also talk to other business owners who have written business plans before and ask for their advice.
10. Decide what software program you will use to write your plan. You can use anything from a simple word processor to a business plan-specific program. You need to use the one that best suits your needs and your comfort level. See Using Software to Write a Business Plan for more information.
