 Business
Plans
Using the internet to write a Business Plan
First Published: April 2004
Last Update: April 2004
Author: Peter Hale
Using the internet to write a Business Plan
All studies I have seen show that companies that have a well developed business plan produce more revenues and profits than those without.
It can seem a daunting process at first but it is such a crucial piece of work to ensure the success of any business. This paper sets out some simple ideas you can undertake on your business and also where to go online to add to your knowledge.
Why have business plans at all?
By going through the business planning process you'll ensure you understand yourself, your competitors and your customers' needs much, much better. This will enable you to put the right strategies in place to maximise your financial results.
In essence, there are four main reasons for business plans
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To provide information about your intentions to you and others.
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To persuade a third party to provide resources or assistance.
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To help your strategic thinking so you know what you are trying to achieve and how you are going to achieve it.
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To set financial targets so you can forecast sales & control costs
How should your plan look?
Keep it concise
No more than 20 pages should be good enough to outline your aims and financial projections
Be realistic
Don't be optimistic. People reading your plan must see that you have done your research and analysis and you understand your business
Show a path to profitability
The most important question for anyone investing will be "when do I see a return"
Show a strong management team
It is the people in your team who are going to make a success of your company.
Business plan basics
First off have a look to see what your business plan format should look like. This will show you the sections you need to complete.
Don't be put off. To start your planning ask the following questions:
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Who exactly are going to buy your products? - write down a profile
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What need is your product going to satisfy?
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Why will they buy your product and not someone else's?
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What is the demand for this product?
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Who are you competing with?
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What are the prices being charged today - and what are you going to charge?
If you can answer these questions then put together a simple sales projection spreadsheet detailing the volume you are going to sell and the price.
Multiply these together and you'll see your sales totals. Is this enough ?
You'll need to subtract the direct cost of the product you are selling (if you sold just one more tomorrow what costs are involved?)
What's left? Is this enough to cover other day to day expenses such as telephone, rent and advertising?
If not, you need more sales or you need to cut your costs.
These are the basics for starting your planning - and business development.
Developing your plan
The largest source of free information online is at bplans.com.
This is the daddy of all sites and there is a lot of excellent information.
Another site offering free templates and planning advice is Teneric business plan - business plans for the small business owner.
Both sites provide a good starting point to find out more about how you can develop your business and to start to develop your business plan.
Compiling your plan
There are no sites that have interactive planners online for free.
The choices you have are business planning software or business planning guides and templates.
If you are very confident, most major banks have free business planning software you can use at home (or work). These will allow you to input your data but are unlikely to give you advice on how to develop your business.
Paloalto sell a very comprehensive piece of software called businessplanpro.
This software costs between $100 and $300 and although extremely comprehensive is probably far too much for most small business owners and is more suited to larger companies.
Other companies that sell business planning software are planwrite which costs $120 and planmagic costing up to $100.
An alternative cost effective way to write your plan
Software is not a magic bullet although it will help.
It's you who knows most about your business - it should be you who plans
It's probably best then to work your way through step by step business plan guide that draw out what you know and how to get you additional customers.
You can also use sample business plans to see what other successful companies have developed and learn from a professionally written plan.
Business planning is a standard process but the results are different for every business
As discussed above your finished document should be no more than 20 pages, so the writing is the easy part - it's the thinking that will take the time and that's why you need expert guidance and not just software.
About the Author: Peter Hale. 20 years business planning and marketing experience and owner of www.teneric.co.uk. Small business plan solutions. You
can contact Peter Hale here.
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