orecast. Also include general expenses such as rent, utilities, business insurance, advertising and marketing costs, loan interest, vehicle expenses, taxes and any other expense you might occur. And don’t forget to include paying yourself in this budget.

During your first year of business you will most likely be operating with a negative cash flow. Most businesses do not show a profit until after year three and some not until their fifth year in business. This will be apparent when you put your forecast profit and loss statement together. A Profit and Loss Statement is a document that lists income less expenses for a specific period of time. The net result is either your Profit (income exceeds expenses) or Loss (expenses exceed income). You need to come up with a plan to cover the time periods when there is not enough cash coming in to cover your expenses. This plan might include using your personal savings, borrowing from family members or friends, taking in partners, selling off personal assets, working a second job, or maybe scaling back a bit. Making this plan will involve taking a close look at all your available ways to raise money for your start-up. It also may involve borro

You are likely familiar with the term business plan, but just what is a business plan and how do you put one together? It is not as complicated as you might think. And if you prepare one segment at a time, than it won’t be an overwhelming task.

A business plan includes the following topics:

A basic business concept A description of your product or service What advantages your product or service brings to the market The competition A marketing plan Your business background and experience within the field Partners and/or key employees and what they can add to company Financial budgets, forecasts and funding needs

The basic business concept is a clear description of your proposed company. For example if I were to open an art gallery I might phase my business concept as follows:

I propose to provide an art gallery in which local artists will rent wall space. I will provide sales staff, opening nights with refreshments and a unique, well lit environment to showcase their artwork. The artists will be responsible for providing a mailing list, invitations and mailing costs, opening night advertisements and carrying insurance on their artwork. All work must be original, owned and copyrighted by the artist and framed. All art and framing must be approved before hung. I will collect a 50% commission on each sale.

The description of your product or service is a specific description of the products you will carry or the services you will provide. Going on with the art gallery business I might say that “The gallery will be showcasing the original art of local artists and offering a unique selection of subjects”. The answer to what advantages your product or services brings to the market will depend upon the competition within your market area. It may include statements such as "There are no other galleries in this area that offer original art" or perhaps "By showcasing art from local artists only, our customers will feel pride in supporting their local culture". Or perhaps your easy to reach location, or the uniqueness of your building brings value to your product or service. Just who is your competition? Look around; visit their places of business if at all possible. Ask those who might use their services or visit their store why they like doing business with them and what they might like to see improved. And don’t stop with the businesses in your immediate area; expand beyond to locate your competition. In this day of Internet access, it would also be smart to do a search for competing businesses. In this segment of your business plan, list your main competitors and describe how your product or service will stand out from the crowd.

Your marketing plan should consist of a clear description of how you plan to get customers to your door. Will you place ads in the newspaper, on the radio or television or do direct marketing? Consider signage, logo design, web site development, mailing lists, business cards and brochures. Will you join organizations that might lead you to contacts? Do you have previous contacts that are willing to sing your praises? Will you have a grand opening? What ever methods you choose to use this is the place in your business plan to put it all in writing. It is not only what you will do, but when and in what order you will do it, and what you expect to reap from your efforts.

What do you bring to the table in this venture? Have you many years of experience in this field? Have you studied and worked in this area of business before? It’s time to toot your horn. Describe everything that makes you unique to succeed. Sell yourself!!!!

If you have a partner or key employees joining you in this business, then describe what they can add to the overall success of your business. List their relevant experience, education and knowledge.

And now the financial part. All of your forecast reports should be broken down by month. The first part is a sales forecast for at least three years. How do you know what you may sell over the next three years? Well you don’t, you do a best guess estimate. Don’t be pie in the sky, but also don’t be too conservative. Your estimate should show gradual increases over time and may adjust upward or downward if your business is seasonal. And remember, this is a good faith estimate and is expected to need adjustment as time goes by.

Next set up a spreadsheet listing all the expenses you might incur over the first, second and third year. This will include the cost of the product being produced, any tools or equipment you might need, labor and related tax, insurance expenses and all other expenses you will incur to bring your product to a ready to sell state. Your Cost of Goods Sold should coincide with the estimated number of units listed in your sales forecast. Also include general expenses such as rent, utilities, business insurance, advertising and marketing costs, loan interest, vehicle expenses, taxes and any other expense you might occur. And don’t forget to include paying yourself in this budget.

During your first year of business you will most likely be operating with a negative cash flow. Most businesses do not show a profit until after year three and some not until their fifth year in business. This will be apparent when you put your forecast profit and loss statement together. A Profit and Loss Statement is a document that lists income less expenses for a specific period of time. The net result is either your Profit (income exceeds expenses) or Loss (expenses exceed income). You need to come up with a plan to cover the time periods when there is not enough cash coming in to cover your expenses. This plan might include using your personal savings, borrowing from family members or friends, taking in partners, selling off personal assets, working a second job, or maybe scaling back a bit. Making this plan will involve taking a close look at all your available ways to raise money for your start-up. It also may involve borro

ned and copyrighted by the artist and framed. All art and framing must be approved before hung. I will collect a 50% commission on each sale.

The description of your product or service is a specific description of the products you will carry or the services you will provide. Going on with the art gallery business I might say that “The gallery will be showcasing the original art of local artists and offering a unique selection of subjects”. The answer to what advantages your product or services brings to the market will depend upon the competition within your market area. It may include statements such as "There are no other galleries in this area that offer original art" or perhaps "By showcasing art from local artists only, our customers will feel pride in supporting their local culture". Or perhaps your easy to reach location, or the uniqueness of your building brings value to your product or service. Just who is your competition? Look around; visit their places of business if at all possible. Ask those who might use their services or visit their store why they like doing business with them and what they might like to see improved. And don’t stop with the businesses in your immediate area; expand beyond to locate your competition. In this day of Internet access, it would also be smart to do a search for competing businesses. In this segment of your business plan, list your main competitors and describe how your product or service will stand out from the crowd.

Your marketing plan should consist of a clear description of how you plan to get customers to your door. Will you place ads in the newspaper, on the radio or television or do direct marketing? Consider signage, logo design, web site development, mailing lists, business cards and brochures. Will you join organizations that might lead you to contacts? Do you have previous contacts that are willing to sing your praises? Will you have a grand opening? What ever methods you choose to use this is the place in your business plan to put it all in writing. It is not only what you will do, but when and in what order you will do it, and what you expect to reap from your efforts.

What do you bring to the table in this venture? Have you many years of experience in this field? Have you studied and worked in this area of business before? It’s time to toot your horn. Describe everything that makes you unique to succeed. Sell yourself!!!!

If you have a partner or key employees joining you in this business, then describe what they can add to the overall success of your business. List their relevant experience, education and knowledge.

And now the financial part. All of your forecast reports should be broken down by month. The first part is a sales forecast for at least three years. How do you know what you may sell over the next three years? Well you don’t, you do a best guess estimate. Don’t be pie in the sky, but also don’t be too conservative. Your estimate should show gradual increases over time and may adjust upward or downward if your business is seasonal. And remember, this is a good faith estimate and is expected to need adjustment as time goes by.

Next set up a spreadsheet listing all the expenses you might incur over the first, second and third year. This will include the cost of the product being produced, any tools or equipment you might need, labor and related tax, insurance expenses and all other expenses you will incur to bring your product to a ready to sell state. Your Cost of Goods Sold should coincide with the estimated number of units listed in your sales forecast. Also include general expenses such as rent, utilities, business insurance, advertising and marketing costs, loan interest, vehicle expenses, taxes and any other expense you might occur. And don’t forget to include paying yourself in this budget.

During your first year of business you will most likely be operating with a negative cash flow. Most businesses do not show a profit until after year three and some not until their fifth year in business. This will be apparent when you put your forecast profit and loss statement together. A Profit and Loss Statement is a document that lists income less expenses for a specific period of time. The net result is either your Profit (income exceeds expenses) or Loss (expenses exceed income). You need to come up with a plan to cover the time periods when there is not enough cash coming in to cover your expenses. This plan might include using your personal savings, borrowing from family members or friends, taking in partners, selling off personal assets, working a second job, or maybe scaling back a bit. Making this plan will involve taking a close look at all your available ways to raise money for your start-up. It also may involve borro

iate area; expand beyond to locate your competition. In this day of Internet access, it would also be smart to do a search for competing businesses. In this segment of your business plan, list your main competitors and describe how your product or service will stand out from the crowd.

Your marketing plan should consist of a clear description of how you plan to get customers to your door. Will you place ads in the newspaper, on the radio or television or do direct marketing? Consider signage, logo design, web site development, mailing lists, business cards and brochures. Will you join organizations that might lead you to contacts? Do you have previous contacts that are willing to sing your praises? Will you have a grand opening? What ever methods you choose to use this is the place in your business plan to put it all in writing. It is not only what you will do, but when and in what order you will do it, and what you expect to reap from your efforts.

What do you bring to the table in this venture? Have you many years of experience in this field? Have you studied and worked in this area of business before? It’s time to toot your horn. Describe everything that makes you unique to succeed. Sell yourself!!!!

If you have a partner or key employees joining you in this business, then describe what they can add to the overall success of your business. List their relevant experience, education and knowledge.

And now the financial part. All of your forecast reports should be broken down by month. The first part is a sales forecast for at least three years. How do you know what you may sell over the next three years? Well you don’t, you do a best guess estimate. Don’t be pie in the sky, but also don’t be too conservative. Your estimate should show gradual increases over time and may adjust upward or downward if your business is seasonal. And remember, this is a good faith estimate and is expected to need adjustment as time goes by.

Next set up a spreadsheet listing all the expenses you might incur over the first, second and third year. This will include the cost of the product being produced, any tools or equipment you might need, labor and related tax, insurance expenses and all other expenses you will incur to bring your product to a ready to sell state. Your Cost of Goods Sold should coincide with the estimated number of units listed in your sales forecast. Also include general expenses such as rent, utilities, business insurance, advertising and marketing costs, loan interest, vehicle expenses, taxes and any other expense you might occur. And don’t forget to include paying yourself in this budget.

During your first year of business you will most likely be operating with a negative cash flow. Most businesses do not show a profit until after year three and some not until their fifth year in business. This will be apparent when you put your forecast profit and loss statement together. A Profit and Loss Statement is a document that lists income less expenses for a specific period of time. The net result is either your Profit (income exceeds expenses) or Loss (expenses exceed income). You need to come up with a plan to cover the time periods when there is not enough cash coming in to cover your expenses. This plan might include using your personal savings, borrowing from family members or friends, taking in partners, selling off personal assets, working a second job, or maybe scaling back a bit. Making this plan will involve taking a close look at all your available ways to raise money for your start-up. It also may involve borro

o succeed. Sell yourself!!!!

If you have a partner or key employees joining you in this business, then describe what they can add to the overall success of your business. List their relevant experience, education and knowledge.

And now the financial part. All of your forecast reports should be broken down by month. The first part is a sales forecast for at least three years. How do you know what you may sell over the next three years? Well you don’t, you do a best guess estimate. Don’t be pie in the sky, but also don’t be too conservative. Your estimate should show gradual increases over time and may adjust upward or downward if your business is seasonal. And remember, this is a good faith estimate and is expected to need adjustment as time goes by.

Next set up a spreadsheet listing all the expenses you might incur over the first, second and third year. This will include the cost of the product being produced, any tools or equipment you might need, labor and related tax, insurance expenses and all other expenses you will incur to bring your product to a ready to sell state. Your Cost of Goods Sold should coincide with the estimated number of units listed in your sales forecast. Also include general expenses such as rent, utilities, business insurance, advertising and marketing costs, loan interest, vehicle expenses, taxes and any other expense you might occur. And don’t forget to include paying yourself in this budget.

During your first year of business you will most likely be operating with a negative cash flow. Most businesses do not show a profit until after year three and some not until their fifth year in business. This will be apparent when you put your forecast profit and loss statement together. A Profit and Loss Statement is a document that lists income less expenses for a specific period of time. The net result is either your Profit (income exceeds expenses) or Loss (expenses exceed income). You need to come up with a plan to cover the time periods when there is not enough cash coming in to cover your expenses. This plan might include using your personal savings, borrowing from family members or friends, taking in partners, selling off personal assets, working a second job, or maybe scaling back a bit. Making this plan will involve taking a close look at all your available ways to raise money for your start-up. It also may involve borro

orecast. Also include general expenses such as rent, utilities, business insurance, advertising and marketing costs, loan interest, vehicle expenses, taxes and any other expense you might occur. And don’t forget to include paying yourself in this budget.

During your first year of business you will most likely be operating with a negative cash flow. Most businesses do not show a profit until after year three and some not until their fifth year in business. This will be apparent when you put your forecast profit and loss statement together. A Profit and Loss Statement is a document that lists income less expenses for a specific period of time. The net result is either your Profit (income exceeds expenses) or Loss (expenses exceed income). You need to come up with a plan to cover the time periods when there is not enough cash coming in to cover your expenses. This plan might include using your personal savings, borrowing from family members or friends, taking in partners, selling off personal assets, working a second job, or maybe scaling back a bit. Making this plan will involve taking a close look at all your available ways to raise money for your start-up. It also may involve borrowing money from a bank. Try to refrain from mortgaging your home if at all possible. You don’t want to be in the position of losing your business dream and the roof over your head at the same time. Look into SBA loans, local business loans and grants. SCORE, a division of the SBA (Small Business Association) can be a great deal of help not only in finding financing but in all other areas of starting up your business including preparing your business plan. SCORE consists of volunteer business people who offer free business help.

Remember in Chapter Two of A Business Start-Up I mentioned how handy index cards would be? Well now is the time to break them out. Your first set should be dedicated to your business plan. Start a card for each segment of your plan and as you gather information or an idea pops into your head, write it down on the appropriate card. You may need several cards for each part of your plan as you go along.

All in all, your business plan provides a written document to guide you through your start-up and will keep you focused on your goals. Also if you are looking for funding, a well thought out business plan will show you are serious about the success of your business.