Creating a Business Plan

How many of you have ever done a formal business plan?  Do you know where to start?  Do you understand just how important a formal business plan is to running your business?  Well, would you go on a trip with the family and not plan it out ahead of time?  Book hotels, map the route, pack, etc.  Well a formal business plan is just that.  It gives you a way to meet your goals and clearly outlines your plan to others (like loan officers and others) showing them that you are a solid business with a well planned out strategy of achieving your goals.

I am now creating my business plan for JRB Management Services.  As I begin this project I want to share with you some of the basics so you can start yours too!

Business Plan Outline:

  • Executive Summary (Include a Board of Advisers if you are not incorporated.  These can be professionals that you can reach out to for help in certain areas like an attorney, accountant, PR person, etc…make sure they sign a confidentiality agreement with your business as well)
  • Analysis of your Industry, Market, and Competition
  • Products or Services you will offer
  • Marketing Plan
  • Production Plan
  • Management Team and Key Personnel
  • Financial Plan
    • Summary
  • Projected Income Statements
    • Year One
    • Year Two
    • Year Three
  • Pro-Forma Balance Sheets
    • Start Up
    • End Year One
    • End of Year Two
    • End of Year Three
  • Cash flow Projection
    • Year One
    • Year Two
    • Year Three
  • Appendices
    • All back up documentation
    • biographies of Principals

Make sure your plan has a title page that includes your logo, name of business, address, phone number, and a disclaimer at the bottom stating that all information contained within is confidential.

Once you create your plan make sure you share it with your top management and key personnel.  It will become their road map as well to meet the goals that you have set for your business.

Good luck and feel free to post any comments that might be helpful as I begin this process!!

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