There’s no question among business advisors: When you’re establishing, expanding, or reenergizing a business, the best way to start is by writing a business plan. The task may seem a little daunting, which is why we bring this kit to the rescue.
Business Plans Kit , doesn’t tell you how to proceed; it shows you how, walking you through the process with step-by-step action plans, examples, and do-it-yourself forms. So relax. Whether you’re planning to launch a brand-new business, kick-start an idling enterprise, or take a going concern to all-new heights, this book makes the process straightforward, easy, rewarding — and even fun.

Having a business plan — which means writing a business plan — is the best way to turn a good idea into a thriving company. The chapters in this part make you a business plan convert.
They present the case for why a plan is important, walk you through the process, and guide you as you take the first steps toward creating a company with a long and prosperous future.
If you want great tips on how to come up with a winning business idea, I provide steps for conducting a reality check to make sure your idea is worth pursuing, help kick off your business planning process, and offer a guided tour through the essential process of creating your company’s mission, vision, goals, and objectives.

The Anatomy of a Business Plan

Written business plans are as varied as the companies that compile them. Some plans run almost 100 pages, whereas others barely fill a few sheets. Some plans start with executive summaries, and others plunge right into detailed descriptions of products and services. Some companies print their business plans on paper, and some publish their plans exclusively on the Web. Some plans include page after page of financial projections, and others list only anticipated costs, expected revenues, and projected profits. Every business plan is written for a different reason and to obtain a different outcome. Still, some plans are better than others. The following information helps you write a plan that will win high marks.

Business-plan contents from beginning to end

Business plans come in all shapes, sizes, formats — even colors — but they all share a similar framework. The following components, presented in the order they generally appear, are common elements in most business plans:

• Table of contents: This element is a guide to the key sections in your business plan and is especially useful if your plan exceeds ten pages.
• Executive summary: This section is a summary of the key points in your business plan. You should incorporate it if your plan runs more than ten pages and you want to convey important information upfront. Because many readers dig no deeper than your executive summary, you want to keep it clear, captivating, and brief — in fact, try to keep it to two pages or less.
• Company overview: This section describes your company and the nature of your business. It may include your company’s mission and vision statements as well as descriptions of your values, your products or services, ways your company is unique, and what business opportunities you plan to seize.
• Business environment: This section includes an analysis of your industry and the forces at work in your market; an in-depth description of your direct and potential competitors; and a close look at your customers, including who they are, what they want, and how they buy products or services. Think of this section this way: It describes everything that affects your business that’s beyond your control.
• Company description: In this section, include information about your management team, your organization, your new or proprietary technology, your products and services, your company operations, and your marketing potential. Focus on areas where you have real advantages over your competition.
• Company strategy: Here’s where you detail your road map to the future. This section brings together the information about your business environment and your company’s resources and then lays out a strategy for going forward. Included in this section is your analysis of the opportunities, threats, and uncertainties that your business faces along with the ways you plan to avoid pitfalls and take advantage of opportunities.
• Marketing plan: This section is where you describe how you plan to reach prospects, make sales, and develop a loyal clientele. Because customers and sales are essential to your company’s success, this section is a major component of your business plan.
• Financial review: This section includes a detailed review of dollars and cents, including the state of your current finances and what you expect your financial picture to look like in the future. It typically contains financial statements, including an income statement, your balance sheet, and a cash-flow statement.
• Action plan: In this section, you detail the steps involved in implementing your business plan, including the sequence of actions and how they align with your goals and objectives.
• Appendixes: This section includes detailed information that supports your business plan. It may include analyses, reports, surveys, legal documents, product specifications, and spreadsheets that deliver a rounded understanding of your business plan but which are of interest to only a small number of your readers.

Not all business plans include all the components we list. In fact, you won’t find a textbook example of a written business plan. For that reason, we don’t provide any rigid business-plan model in this book. Instead, you find information on how to develop each of the major components, advice for how business plans tend to work for different kinds of businesses, and ways you can organize and present materials in your written plan.