10 Steps to Open for Business

Step 3: Create a Business Plan

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In our experience, the process of creating and writing a business plan is as valuable as the end product itself - a document that will provide the priorities, context and sanity you’ll need as you start up your business.

Just remember that the most important audience for a business plan is YOU! You’ll be forced to be accountable to all of the statements, claims, stats and facts inside of it.

You may also use your business plan as a tool to generate interest from financiers, prospective employees and strategic partners.

We focus on 3 aspects of business planning to consider as you write a business plan:

  1. The "Defining Dozen" questions you must answer
  2. Key components of a business plan
  3. Writing a business plan
Sample Business Plans
Use these sample business plans for reference. * pdf document. Adobe Acrobat Reader required

The "Defining Dozen" questions

To write a good business plan, you have to know the answers to the “Defining Dozen” questions, which we describe in detail in “StartupNation: Open for Business,” our book. Jot down the answers to each of these questions and hang on to them. You might not use every answer in writing your business plan, but they could be helpful when you update your plan as your new business grows.

  1. What’s your business idea? (Read the book excerpt)
  2. How does your idea address a need? (Read the book excerpt)
  3. What model suits you best? (Read the book excerpt)
  4. What’s so different about what you offer? (Read the book excerpt)
  5. How big is the market and how big will you grow? (Read the book excerpt)
  6. What’s your role going to be? (Read the book excerpt)
  7. Who's on your team? (Read the book excerpt)
  8. How will customers buy from you, and how much will they pay? (Read the book excerpt)
  9. How much money do you need, and how much will you make? (Read the book excerpt)
  10. Where's the startup money coming from? (Read the book excerpt)
  11. How will you measure success? (Read the book excerpt)
  12. What are your key milestones? (Read the book excerpt)

Once you’ve answered these questions, you should be prepared to write the actual business plan document.

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Comments

I just thought I would touch on some software that I just purchased to formalize my business plan in the hopes that others might find the information helpful.  :) I just purchased Business Plan Pro Premier from Palo Alto Software.  It should be arriving in the next couple of days!  I chose this package because it is the one my husband`s chiropractic school has it`s students work through (and since sooner or later we`re going to need to get a business plan written up for him,...

MeLissa, You are waaay ahead of me on that one. I`ve been in business for almost 2 years now and I never created a business plan. I still plan to, but I just haven`t had the time. Lame excuse, I know! I think I`m holding back because I have no idea how to do projections. To me, anything could happen and I have a hard time understanding how anyone can project things in a precise manner. Does this freak anyone else out?

You know, Chris, that is a bit scary to me, too.  Thankfully, as a CPA it was drilled into me that projections (or forecasts) are just like the weather forecast - they`re rarely right.  The idea is to simply give yourself something to shoot for... I can tell you, though, that I have groused more than a little bit to my husband about how it seems like such a waste of time to prepare something of this sort (I complained similarly when I was doing it for other people, too!) whe...

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