Episode A1.002 Writing a Business Plan

IBGR - RESULTS Radio Network. Everything a business owner needs to start, grow or exit a business. COME GROW WITH US.

Introduction
It’s time to get to work because businesses don’t build themselves! In the Pre-Startup Stage,  you probably have many questions about where to begin. Right here on Monday mornings in the Finance Lane is a great place to start. 

Then look at the other topics covered in this stage of business development and pick which shows you feel need your attention. I highly recommend you also add the Friday show called Owner as Executive to your listening list as well. 

Show Objective
Today we are going to talk about Business Plans. This is where you put your dream into writing and begin thinking through the key areas of your new business idea. Business plans are important because they not only help you get clarity on your ideas but also are necessary if you plan to apply for a bank loan or solicit investors. 

While every business owner should have an ongoing planning process to help them run their business, not every business owner needs a complete, formal business plan suitable for submitting to a potential investor, or bank, or venture capitalist. 


Your Money Mindset
As we continue to work on building a healthy money mindset, return again to the book “Think and Grow Rich.” Last week you were invited to take the 14 day challenge and read the chapter on Persistence 14 days in a row. How is that coming along?

Today, we are visiting the 8 steps you can use to train yourself to be persistent. They are:

1. Definiteness of Purpose
2. Desire
3. Self-Reliance
4. Definiteness of Plans
5. Accurate Knowledge
6. Cooperation
7. Will-Power
8. Habit

Overview of Business Plans
*There are many options to choose from when it comes to writing business plans. Some go into great detail while others cover just the basics. The level of detail you need depends on several factors: the type of business, size of business, and whether it remains internal or will be used to apply for a loan or attract investors. 

All business plans have several key elements:

1. Strategy: What you’re going to do
2. Tactics: How you’re going to do it
3. Business model: How you’re going to make money
4. Schedule: Who is doing what and when

Basic Parts of a Business Plan include:

1. Executive summary
2. Company overview
3. Business environment
4. Company description
5. Company strategy
6. Financial review
7. Action plan

Next Steps
Your goal this week is to begin writing your business plan. As you are writing, make sure there are no gaps in responsibilities in getting all the jobs done that are necessary to the success of your new venture. For example, are there products to be manufactured and packaged? Who is responsible for organizing a manufacturing plan and who actually makes the stuff? Will outside services be needed for any reason? Who keeps the books and pays people?
  

1. Write down your thoughts throughout the planning process. 
2. Get help to construct the plan. Resources in business planning can be found in abundance on the Internet.
3. Describe the business. 
4. Analyze the market. 
5. Develop a sales and marketing plan. 
6. Prepare financial statements. 
7. Choose your business name. 
8. Register your business name. 
9. Establish the legal structure of the business. 
10. Describe the management structure. 

Next Show: A1.003 Registering with Country, Federal and Local tax organizations

Written by: Donna Kunde

* I am not a CPA and the recommendations given in this show do not constitute legal or financial advice. Seek professional advice for all legal and financial matters. 

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