It is good for you that you are planning to start a new business. Many people fool around with the idea of opening up a new business but never make their mind to really do it. Many don’t even get to this vital stage of decision. Now there is some serious work to do once you have made your choice. Several steps may constitute the process of initiating any business, and the first of all is to create a concrete business plan.

A business plan is not as simple as just saying you wish to become a business owner. Business plans are formal documents that describe in detail everything about the future business, including how the business will operate, how it will be managed, and the goals for the business. Business plans are useful to owners and managers, as well as employees and customers.

Business plans are important whether you are planning on constructing a large business franchise or simply a small scale operation. However, the plan itself will likely be different depending on the size and scope of your ideas. Therefore, applying simple pre-written templates for business plans is not the best solution. Be creative and use what works best for you, not for other people.

What goes into a business plan? There are several components, each of which is generally split off into its own section. First you need an executive summary, which gives an overview of the plan and your company’s mission. Next is the market analysis, which describes the field in which you will be conducting business. You should then go into a description of your company, with separate sections for its management, marketing, and product line.

The last section is called the funding and financial section. It deals with the most important business component: money. In this section, explain how you plan to finance your business start-up and what you have in mind for financing later expansion. For instance, you might explain whether you will use startup business loans or investments of a similar type. If some of the funding will come from shareholders’ investments, include this information as well.

It is acceptable to place an appendix at the end when writing business plans. The appendix is a valuable tool for outsiders, such as creditors and suppliers, who need to see official documents related to your plan. Such documents include credit report and history, legal forms, licenses, permits, and contracts.

Keep your plan up to date:
It is important to remember that business plans are meant to evolve with your business. The scope of a business plan should expand as the company does. A strategy set forth for a start-up business will not help a once that business is a chain. Revising your business plan will help you address any difficulties your business may encounter on the way up. You should regularly address your business plan and update it to keep pace with your changing company and ambitions.

If you dream of starting your own business, the very first thing you need to do is write a well thought out business plan. Business plans are an official strategy written not only for your personal use, but for employees, customers, creditors and suppliers. A business plan sets forth guidelines establishing the purpose, operations, management and goals of business franchise. It is composed of different sections namely an executive summary, market analysis, narration on management, marketing and product line. The funding, startup business loans and financial sections are then followed by the appendix at the end. Businesses evolve and their plans should too.

- Jose DeJesus MD, MBA