How To Write A Successful Business Plan

Contributed by Brian Ochsner

If you were to picture your ideal business scenario, you would need to ask yourself several questions:

• What would I like my ideal business to be? In order to know this, you need to know your strengths, weaknesses, likes and dislikes very well. This will give you a better idea of what business is right for you.

• What kind of resources do I have available to start a business? Resources don’t just include financial ones. Maybe you have good sales or marketing abilities, or know others who are strong in areas that you’re weak. It could include specialized knowledge, a great location, great existing relationships with suppliers and lenders, or a potentially good customer base.

• How much cash do I have available to start my business–and potentially live on–before the business is self-sustaining? You may need to be more realistic in your expectations when starting your business. It’s better to be pleasantly surprised instead of bitterly disappointed. Especially when you don’t have the amount of cash you thought you would. Talk with a local banker or mortgage lender and find out how much money you could comfortably borrow without putting your personal finances in jeopardy. Don’t paint yourself into a financial corner if your business performs below expectations.

• Who is your target market? This is a critical business question. Why? Because if you don’t know who you’re selling to, you don’t know what they’ll want, and it’ll be very difficult–if not impossible–to be successful. This leads to the next question.

• Why should my target market do business with me instead of my competitors? This is also called your Unique Selling Proposition, or USP. This is probably the most important part of your business plan. If you can’t answer this question, you may need to revise your plan. It’ll be easier to answer if you know yourself and your customers thoroughly. You may want to ask friends, family members, former coworkers and business associates for their input. They may have some ideas or input that can help you formulate a USP you may not have thought of on your own.

• What kind of skills do I have? Everyone is unique, with a specialized combination of abilities. Not everyone can know or do everything. You may need to get Quicken® help, take a PowerPoint® lesson, or learn Photoshop® tips. Don’t hesitate to ask for help if you need it. This assistance may be the difference between business success and failure.

Once you’ve done this self-assessment, I’d highly recommend getting a business team together to completely redo or fine-tune your plan. It’s not always easy taking constructive criticism from others.

It’s better to hear a sometimes-harsh truth now, instead of closing your business later. Who should be on your team?

I’d recommend having a bookkeeper, CPA and/or financial planner, along with a tax professional. Knowing how to structure your business and manage cash flows can make a big difference in your bottom line.

It’s also a good idea to present your business plan to several local bankers, as if you were applying for a loan. Bankers are the most conservative and skeptical folks around when it comes to lending money. That’s because they don’t want to approve a large number of loans where the borrower defaults.

If your business plan gets above average to high marks from a majority of bankers, you’ve got a good plan. If most of the bankers don’t like your business plan, ask them what you could do to improve it.

I also recommend having both a sales and marketing advisor. You may think they’re one in the same, but not quite. Marketing is about attracting potential clients to your business, sales deals with converting those potential clients into actual paying customers.

If you don’t have one or more already, find a successful, non-competing person(s) in your industry to consult with. They’ve “been there and done that.” An old pro can tell you what, and more importantly, what NOT to do starting out in business.

These are fundamental steps you’ll need to complete in making your business plan. Another final tip–choose your advisors carefully. Make sure they have your best interests in mind, treat people well and have good business ethics.

Review your progress with your business plan frequently. This will lead to a better-designed plan, and increase your chances for business success.

Quicken is a registered trademark of Intuit, Inc. in the U.S. and/or other countries. PowerPoint is a registered trademark of Microsoft Corporation in the U.S. and/or other countries. Photoshop is a registered trademark of Adobe Systems Incorporated in the U.S. and/or other countries.

About the Author:
Brian Ochsner is a copywriter and marketing consultant in Denver, Colorado that helps businesses increase sales and revenues. His blogsite is: http://DenverCopywriter.Blogspot.com, e-mail is DenverCopywriter@hotmail.com.

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