Death by Business Plan

Folks it is Not That Bad

Look, here it is. This is the outline ...

Cover Sheet

Table of Contents

Executive Summary

The Business

Strengths and Weaknesses

Legal Structure

Business Description

Product or Service Description

IP Property Description

Location

Management Personnel

Records

Insurance

Security

Litigation

Risk Factors

The Marketing

Markets

Competition

Distribution and Sales

Marketing

Industry and Market Trends

Strategy

The Financials

Uses of Funds

Income Statement

Cash Flow Statement

Balance Sheet

Income Projections

Breakeven Analysis

The Supporting Documents

_____________________________________________________

Pointers:

Don't write a technical document. This is a strategic document. If you present a 100 page plan to your bank or investor, they are not going to read it. Fifteen to 20 pages should suffice.

The Executive Summary should be written last and is the highlight reel of the rest of the plan.

If you operate a business as a sole proprietorship, change that. Seek out competent legal advice and form an entity - An S Corp, C Corp, LLC or LLP. A serious investor will deposit the business plan in the trash if they see you are a sole propreitor.

The business plan should include the company mission (compass), goals (the map) and tactics (steps to achieve your goals.)

Remember on goals, be specific. Instead of saying I want to lose weight, state "I will weigh 171 by September 22nd, 2010 at 7pm." Be very specific, read it three times a day, rewrite it every day, visualize it as already complete, affirm it out loud.

Cash flow is king. Your business plan should contain a cash flow statement and for your own sake it should show that the business can cash flow. This is for your benefit - do not sugar coat your projections.

Over time the business should be building and/or buying you an asset. This will be reflected in the balance sheet.

__________________________________________________________

Now, can the Small Business Development Center at WKU help you with your business plan? Yes we can. Does the Gordon Ford College of Business offer courses in entrepreneurship? Yes they do.

Rember our small business mantra - build systems, not buckets - and the vital role a business plan plays in the following anecdote:

____________________________________________________

A small town in need of water identifies a quality source, a large lake one mile away. Two budding entrepreneurs start a business to deliver the water to the town. The first gal gets a bucket on day one and starts tenaciously hauling, making about a $100 a day.

The second gal plans for 6 months, visits the Small Business Development Center, writes a business plan, incorporates, secures financing from her banker, meets with the zoning commission, buys insurance, hires employees, builds a pipeline and starts pumping water to the town for about $1,000 a day.

The first gal seeing this starts hauling two buckets a day, hires her son into the business, starts working 12 hours a day and after 12 months of this, folds and goes back to her day job.

______________________________________________________________

The point again is to build systems, not buckets.