The business plan: One of the most dreaded tasks for new business owners. It requires time, research, and decisions that you may not feel you’re ready to make. But the business plan is one of the most important tasks you’ll undertake. Not only is the plan necessary to obtain financing, it also defines your organization.

The business plan helps you articulate your thoughts and philosophy about your business, and it forms a framework for your strategies. Best of all, it serves as a guidebook to remind you and your employees where you are going in the next year. And just as your organization will evolve and hopefully grow, your business plan is a living document that will evolve with you, keeping you focused on the future without losing your link to your founding ideals. The business plan will also inform your marketing plan, which is covered in Chapter 7.

There are a numerous sources you can consult with on how to write a business plan, including books, websites, counselors (such as an SBA or SCORE advisor), and paid consultants. Each source might have a slight variation of what goes in the plan, or how it’s arranged. In general, though, the plan should include the following components:

¨      Executive summary

¨      Company profile

¨      Market analysis

¨      Strategy and implementation

¨      Management Summary

¨      Financial plan

On the next page, we will look at these sections.