TAILIEUCHUNG - WRITING A BUSINESS PLAN

No matter what kind or size of business you are starting, it is very important to create a business plan. It will be your road map to success. It communicates your understanding of the business and it makes reasonable assumptions and forecasts of sales, expenses, and cash flow. | WRITING A BUSINESS PLAN No matter what kind or size of business you are starting it is very important to create a business plan. It will be your road map to success. It communicates your understanding of the business and it makes reasonable assumptions and forecasts of sales expenses and cash flow. When writing your business plan it is important to keep in mind for whom you are writing it. If you are writing a business plan for an investor or a bank you should assume that they know nothing about your business and industry. Also keep your business plan short and to the point. If you were a loan officer would you rather read a sixty-page plan or a seven-page plan Bankers and investors want just the facts - all of the facts -but just the facts. If on the other hand you are writing a business plan just for yourself you should construct it to suit your needs. It should indicate your goals and what strategies you will put in place to achieve the goals. If you are writing a business plan for an investor or a bank the following information and format is recommended Note This information is also important for an informal business plan . EXECUTIVE SUMMARY This is a one page summary of your business plan. It should include A very short history of the business. The amount and type of financing required. The amount of equity money already invested and collateral offered. The purpose for which the money will be used. A very short summary of owner experience in industry and business viability. TABLE OF CONTENTS The table of contents lists the major divisions of your plan. The page numbers where each section begins should also be indicated. I. The Business II. Products Services Offered III. Market Analysis IV. Marketing Plan V. Management and Personnel VI. Financial Data A. Sources and Uses of Funds B. Balance Sheet C. Cash Flow Projection D. Financial Assumptions VII. Appendices and Supporting Documents THE BUSINESS This section describes your business and the industry you are .

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