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Local Business  » Ever thought of starting your own business?

Ever thought of starting your own business?

When starting a business, you have to show that you are serious,

and that you have thought your ideas through. This will help

clear your thoughts and convince others of your intentions!

So, here is a quick nine-step guide to what you will need in

your company's

business startup plan:

An executive summary that states goals and objectives. The

executive summary introduces your business strategy and probably

is the most important section for lending institutions. You need

to convince the bank in the first two or three pages that you've

got a viable business proposal, or you're going to leave

empty-handed. This summary is also useful as a communication

tool for employees and potential customers who need to

understand -- and get behind -- your ideas.

A brief account of how the company began. Clearly explain the

origins behind the company's and how you or your business

associate came up with the initial idea.

Your company's goals. Explain in a few paragraphs your short-

and long-term goals for the company. How fast do you think it

will grow? Who will be your primary customers?

Brief career resumes of the management team. This section should

include the names and backgrounds of lead members of the

management team and their respective responsibilities.

The service or product you plan to offer. A key aspect of this

section will be a discussion of how your product or service

differs from everything else on the market.

The market potential for your service or product. Remember that

you've got to convince lenders, employees and others that the

market you're after is relatively large and growing. You'll need

to do some research for this section. Research your market

thoroughly, using web resources etc. Example, use local

government records to identify size of potential local market

A marketing strategy. You need to tell the world that you have

arrived! Will you rely exclusively on word of mouth (not a good

plan unless you've already got a reputation)? Will you advertise

in print, television or on the Web (or all three)? How about

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marketing via the web?

A medium to long financial plan. Include a summary of your

financial forecasts, with spreadsheets showing the formula you

used to reach your projections. You'll need balance sheets,

income statements and cash-flow projections for the entire

forecast period. This section is also where you would tell

prospective lenders how much money you'd like to borrow to cover

your startup costs. The assumptions that you make in this

section will make or break your company's success. If you're

unsure about using this kind of financial modeling, find a

professional. It's worth the money.

An exit strategy. All good business plans include a section that

lays out the benchmarks you'll use in deciding to call it quits.

The strategy could be based on a revenue figure.

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