The goal of any business is to make money. But how? With whom? When? How much money will it cost? What are the risks?  Where is the business now, and where is it going? Many entrepreneurs describe the sensation of “having all these ideas bounce around” in their heads.  Ideas are good, but they are even better when communicated! Clear, concrete, and concise goals are imperative for a successful and sustainable business.

Maybe you are starting a new business and have a lot of ideas bouncing around in your head.  Maybe you have an established business but want to go in a new direction. Either way, a business plan will help you communicate your goals well and create a roadmap for success.  

A business plan is a formal statement that describes a business’ goals and how the business will move forward in the next 3-5 years. A good business plan will include, but is not limited to the following:  

• Business description 
• Stated goals 
• Reaching stated goals 
• Market analysis 
• Revenue, expense, and cost 

A basic business plan may fall between 10 – 30 pages, but some business plans may be 100 pages or more, it really depends on your goals or product’s purpose. Some business plans are used for internal purposes, such as providing organization for the business, creating a strategic plan, or clarifying an owner’s goals.  However, other business plans may be used for external purposes, to gain funding, manpower, or customers.

Creating a Business Plan  

There is a whole market for business plan creation. While it is possible to simply use a business plan template or hire a consultant, it is recommended that you write your business plan yourself – at least at first! The purpose of the business plan is to capture your ideas and your vision, and you’re the best candidate to write it. Of course, you can use a template or hire a consultant later, but make sure you write at least the first draft. And who knows, maybe you’ll get more ideas in the process!  

Questions to consider as  you craft your business plan:   

1. Business description                                                                                                                                                                         What is the business’s history? Where is the business located? What does it sell? Who is in charge? What kind of business entity is it? What is its scale of operation? 
2. Stated goals                                                                                                                                                                                        Why did you choose it as a goal? What do you want to accomplish? How will achieving that goal benefit your business? Why do you believe this goal is achievable? What are the inherent risks? How will you mitigate those risks? 
3. Reaching stated goals                                                                                                                                                                      How are you going to accomplish your goals? How are you going to market your goods and services?  Who will do the work? How will the work get done? When will the work get done? What “mini-goals” and deadlines should you set along the way? 
4. Market analysis                                                                                                                                                                                 Who is the customer? What does the customer want? Who is the competition? What does the competition offer? What do you offer that the competition doesn’t? What can you offer that is over and beyond what the competition offers?  Is the market changing? If so, how quickly and in which direction? How will you keep up with these changes? 
5. Revenue, expense, and cost                                                                                                                                                          How much capital will you need at the start? How much capital will you need to continue? How much will you gain? How long will it take until you profit from this activity? How do you know?  What research substantiates your claims? 
6. An Effective Executive Summary                                                                                                                                                 After you finish the “body” of your business plan, you may want to add an executive summary at the beginning. This will function similarly to the introductory paragraph of the standard 5-paragraph essay, the “hook” in an informal speech, or a prosecutor’s opening statement. Yes, it goes in the beginning, but do this last! After you have written everything out, highlight the key points, and use those points to write a summary of the business, its goals, and how the business will achieve those goals. Be brief. Be optimistic. Be interesting! This will be the first thing that people read. 
7. Conclusion                                                                                                                                                                                         Ideas are wonderful, but are sometimes hard to define. Unfortunately, over 70% of new businesses do not survive after year two because ideas that stay in people’s heads either will not be implemented or will not be implemented well. 

A business plan is essential to help entrepreneurs get their ideas from inside their heads and onto paper. They summarize where the business has been, project where it is going, and create a roadmap of how it will get there.  The goal of a business is to make money, and by taking the time to capture clear and concise goals in a written business plan, you will be well on your way.