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A business plan is a clear course of action for small and large businesses. Without a clear plan, it is nearly impossible to win the favor of an investor. You can also forget about a bank loaning you money. Even though you've mapped out your business plan in your head, it still needs to be presented in black and white. You do not want to make any decisions, set priorities, or train managers before having a plan in place. You are going to need more than a bunch of number to do this. Facts are what you need because every plan needs to strike a balance between the factual and the ideal. You will need to gather as much information as possible about the products or services you intend to offer before drafting your business plan. You will want to consult with several sources of information to do this such as books, journals, magazine articles or just about anything that would have information you might be able to use. You can start writing your plan once you have gathered all of the relevant information. The Internet has sites offering business plan templates in case you feel overwhelmed or confused by the whole process. After the information has been assembled, it is time to begin writing. If you don't know where to begin, look on the Internet for business plan templates to help you on your way. In order for your business plan to be accurate and within reason, you will need to collect a wide range of materials. The information provided in this article is a starting point. I believe this basic material will give you a good place to start without becoming overwhelmed. Besides researching the "how-to" to writing a business plan, surf through the Internet one click at a time. You can also scan a book; paying close attention to business names, cost of products/services, location, leasing fees, and the market. All of this information will be useful when you begin writing your business plan to success. Take a legal pad and make note of the following. Business Name: List the type of industry you want to go into. Develop a name that has a special flare to it, and research that name. Is your business name unique? Does it inform your prospective customers of what you do? While researching, don't forget to analyze "what is in a name". Pricing: You want to research your competition to find out what they are charging for the same products or services you intend to offer. Are your prices more or less? Is there anything unique about your services or products? Who are the people you intend to sell to? Product/Service Cost: Since you already know what you want to sell but aren't exactly sure what to charge, find competitors in the area and see what they are charging for their products or services. Are your prices in line with theirs? Do you offer some unique service or product that they cannot? Finally, just who exactly do you expect to want what your company has to offer? Business Location: They say that location is everything in business. Profits are definitely related to where your company is situated. If there are two auto repair shops on a street and you own one of them, the odds of you dominating the market and reaping huge profits are slim indeed. But, if you specialize in custom restorations while the other place is a low-end quickie paint shop, things definitely look better. Management and Staff: Every investor wants to know how you plan to keep your employee cost down. During the first 3 to 5 years, the most critical time of your business, the less cost you have, the more business equity you can build. Think about who will be your key team players, and how much you plan to pay them for their services. Organizing Your Notes Your contribution to developing a business plan, time and research, is valuable to those who assist you near the end. Investors and banks want to know that "you know your stuff". Coming into a business endeavor without any background in the industry or research is a huge mistake. Immediately investors and banks think you're not serious. First impressions are important! Your goal is to win over the investor or banker. Make them believe in your dream, and understand what makes your business unique. Showing up with a legal pad and notes will not be impressive. Every morsel of information has its place within your business plan. When you're doing it yourself, pay close attention to your answers. Double check for grammar errors and sentence structure.
Article Source: http://www.financemanual.com
Vlad Ehrsam is the chief writer for, and editor of Full Info on Business, it's one of the webs most up to date Business sites, while you're there sign up for the free newsletter. This and other unique content business articles are available with free reprint rights.
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