The Business Plan: Creating The Map To Your Success

A business plan is a formal document which describes the business, details the goals of the
business, and describes how those goals will be attained as well as the risk factors that may
present problems.

There are a number of resources available to help assist you in preparing a business
plan. Too many business owners think they have a good idea and decide that a good idea
warrants starting a new business. If business owners take the time to prepare a business plan,
they might find that risk factors, originally undetected, become evident in the business plan and
decide against starting a new business. It is far better to invest the time in writing a business
plan than to invest more time and money in a failed idea. After the business plan is prepared
and the business started, keep the business plan available and revisit it every couple years.
Make updates to the plan and use it as a working document to help aid your success.

A business plan will typically be made up of the following elements. Use a step­by­step process
similar to this when outlining key points:

1. Start with a description or story about the business. The description should go into some
details and talk about your vision, the market, and the people involved with the business.

2. Include market analysis. This should be considered to fully understand the market
opportunities and the competition that is currently present, along with potential future
competition.

3. Prepare a SWOT report. A SWOT report is a short discussion on the Strengths,
Weaknesses, Opportunities, and Threats of your business.

4. Include financial projections. Do this initially, to get the company started, and then prepare
an annual budget for the first few years.

5. Include a marketing plan. This should discuss in more detail how you plan to market the
business.

6. Detail key employees, daily operations, and staffing requirements. Again, discuss the
business at start­up and for the first few years.

Books that may be helpful are: • Anatomy of a Business Plan: A Step­By­Step Guide to Starting
Smart, Building the Business, and Securing Your Company’s Future by Linda Pinson •
Successful Business Plan: Secrets & Strategies by Rhonda Abrams • Writing a Convincing
Business Plan by Arthur DeThomas Ph.D. and Stephanie Derammelaere, MBA.

Before you start a business, it is also recommended that you study the industry to
determine the profitability levels and the potential revenue in that particular industry. This type of
research can be done on all types of industries and should provide valuable information.

Brought to you by David Lucier of Lucier CPA, Inc. 1308 Atwood Ave, Johnston, RI 02919 (401) 946-1900