What is a Business Plan?

chicodawg

I finally found the forum regarding businesses. Very educating! Now I have a question. And, with all the help I have received in the other forums, one day I hope to be able to help others.

Here goes...

I have registered my business (services) - IRS, state gov't, local gov't, bank, etc. I have read, mostly on here, about having a "business plan" - which probably should have been done PRIOR to registering, but anyway...

What exactly is this business plan? What should it include, or what is a basic/generic outline? Is there a site with this info?

Thanks for the insite!
Mike

Cason

This is a good start...

http://www.bplans.com/dp/

chicodawg

Wow, thanks for the excellent resource.

I am reading through the beginning links and printing out a sample business plan (for the Pet Photography business). Their plan is at 27-pages so far.

This should do it. Thanks again!

Mike

randwool

Mike, As a business owner, I can tell you there is no need to think you need a 20-30 page business plan. The simple headings required are:

Company Profile
Market and Industry Analysis
Marketing Strategy
Operational Plans
Financial Projections

It's much the same as an individual resume. A business proposal is simply a document a bank (for example) would need to examine if you decided to ask for a loan from them. No one else needs it. Business runs on profit. Your plan, meaning your ideas, should clearly show your capital investment, how you will generate money, and the projected incomes from your work. This can be done on two sheets of paper. The reason a BP needs to be complete before going into business is to make you THINK about what you're wanting to do and STOP YOU if common sense says otherwise.

David_S85

Funny thing... I'm currently tossing most my old records from my store (1973 to 2001; I bought it in '82) and I just found my original business plan a couple days ago. With it I received but seldom used a hideous amount of rolling credit from the local bank, and this also helped me to establish credit from most of my suppliers. I based future sales on a pathetic 8-10% increase in retail sales per year. And luckily, far surpassed that as the town was growing 20% per year.

It was all done up in pencil, graph paper, and green ledger sheets with actual 1978-1982 figures used as the base calculations.

And it was partially B.S. But it was what the bank wanted to see from a naive 24 yr-old. Someday, when I need a good laugh, I'll look at it in detail, and crunch the numbers to see how I did.

A business plan really is something to do. Done right, it will clarify all expenses (current, future, fixed and variable, tax obligations, etc.) and contingencies. And done even more right, could even scare would-be business owners into not opening up a business.

chicodawg

Very good information. Thank you.

I am drawing up the plan based on your responses. Maybe I can use key points from the Pet Photography business plan outlined on bplans.com and piece it together with Randwool's suggested headings.

I can easily create the company profile, marketing strategy, operational plans and even (guess?) financial projections.

Market and Industry analysis may be difficult. That should basically involve research and a formula based on research data? As in population of area, intended client base, number of other photographers/studios, etc. That part I'll have to read more about.

Thanks again!
Mike