A Business Plan is a laborious written document that is thoroughly thought out, with a understanding of the market, the nature of the business, and how well you personally fit into this particular market. The process of putting a Business Plan together forces you to take an objective, critical, unemotional look at your business in its entirely. The Business Plan is an operating tool, which will help you manage your business better and work effectively toward its success. The Business Plan communicates your ideas to others and provides the basis for your financing proposal.

The importance of planning cannot be overemphasized. By taking an objective look at your business, you can identify areas of strength and weakness, spot things you might otherwise overlook, and see opportunities early and how to implement them. Your Business Plan will help you avoid some problems altogether or show you the business is doomed to failure. If your proposed business is marginal at best, the Business Plan will show you why, and help you avoid paying the high cost of learning about business failure. It is far cheaper not to begin an ill-fated business than to learn by experience what a Business Plan would have shown you.

The following is a suggested format for a Business Plan:

Cover Sheet. It should identify the business, location, telephone number or where the principles con be reached, and who has written the Business Plan.

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First Section: This should cover the business.

A. A detail description of the business, what its purpose and objectives are, where is the location and who are the principles are.

B. A description of management and personal.

C. Define your Market and who needs your goods or services.

D. List your competitors and how your operation will be better than theirs.

Second Section: This should cover all the financial data.

A. Sources of funding.

B. Capital Equipment List.

C. Balance Sheet.

D. Breakeven Analysis.

E. Income projection for a three (3) year period.

F. Cash-Flow projections for a three (3) year period.

Third Section. This should cover the financing of the business or if applying for a S loan, what the effect of the loan will do for the business.

Fourth Section: It contains the supporting documents.