Page 37 - midJersey Business - January 2015

YOUR STEP-BY-STEP GUIDE TO

MAKING A GOOD FIRST IMPRESSION

L

By John Cole

earning how to write a sound busi- Your inancial plan is the most critical aspect of
4
ness plan is an essential irst step your business plan. Explain the amount of funding
toward creating a successful busi- your business needs and provide supporting inancial data

ness. Your business plan will not on your past and projected inancial activity in the form

only shape your strategy but will of income statements, budgets, and cash low statements,
serve as a powerful communication among other documents.

tool. In addition, a business plan can
help you clarify what you want to Deine your product or service. It should explain
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achieve and evaluate how, exactly, exactly what you’re offering and why it is both dis-
you will reach those goals. The fol- tinct and marketable. What competitive advantages do you

lowing is a guide that may help assist you in your business hold? Spell them out. Explain exactly what your product
plan writing needs; however, you should consult a profes- or service is and why people or businesses will want to

sional for advice speciic to your situation. The U.S. Small purchase it. Be sure to highlight areas where your product
Business Administration and New Jersey’s local chambers or service has a clear advantage over the competition. Also,

of commerce are also excellent resources.
include details about pending or established copyrights or
trademarks and present or future plans for

A well-thought-out
1 While no two business plans
research and development.
are identical, there are certain as-
business plan can
make or break pects that every plan should address. It
6 A market analysis centers on the
a
start-up business. should include a cover page and table
marketability of your business,
of contents; an executive summary;
who are your competitors, and how you
This is a blueprint
a business background, which should
it into the competitive landscape. In
for turning your idea include company-speciic information
the analysis, identify and describe your

into a functioning, about your product or service; a mar-
industry, your target market, and how
proitable reality.
keting plan; an action plan addressing
you’ll reach those customers. Include

operational and management issues, le-
information on any market tests you
gal, compliance, and other regulations;
have conducted and identify your direct

a inancial plan including summary and forecast, and and indirect competition. Also, delve into your marketing
cash low management; and an appendix.
plan and sales strategy.

Keep in mind that your business plan should deine A well-thought-out business plan can make or
2 7
your business. The executive summary is where you break a start-up business. This is a blueprint for
make a irst impression. It should be concise and compel-
turning your idea into a functioning, proitable reality.

ling and give the reader just enough insight to want to There are no absolute rules to writing a business plan. It
know more. Sometimes it’s helpful to write this portion can be as unique as your company. But it’s irrefutability

last, after you’ve spent some time contemplating and at the heart of your planning process. It should describe

articulating all the details of your business.
the essential components of your company and tell your
story to potential lenders and partners alike. Keep in

3 Be speciic in the business background portion. mind that it’s a living document, and you may need to
How will your business be organized in terms of
modify it periodically as industry trends shift and your

structure and leadership? This should be clearly spelled business matures. And by doing this homework, you can
out, so it’s evident who does what in your company and avoid some of the planning pitfalls that so many entrepre-

what qualiications they bring to the table. Investing in neurs inadvertently make.
human capital is important and can help underscore

your sales and growth strategies.
John Cole is a business banking manager at Wells Fargo.

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january 2015