Every new business starts with a bright idea and a dream to make it reality. But it takes much more to make that transformation. You are going to have to convince others — including financiers, partners and potential employees — that your fantastic idea has a legitimate chance of success. For this, you need a solid business plan.
This is both a challenge and an opportunity for you to take your thoughts and put them in writing. This also gives you a chance to hone your ideas and challenge your own assumptions. Traveling the path of the entrepreneur is not for the faint of heart. Your business plan should help to reassure you that you can and should go forward with your dream.
Your business plan is a written document that lays out the vision for your business and how you will build it. Here, you will describe why your business is needed and how it stands out from potential competitors. You will establish goals and explain how you will meet them. This is your opportunity to brag about yourself. What are your unique strengths and how will they help you succeed? You will also talk about financial goals and expectations, as well as where you will find help if needed.
Consider this plan a living, breathing document that will serve as your guide as you launch and grow your business. One of the great things about this process is that it costs you nothing but time. However, this point in the business evolutionary curve can have enormous payoffs down the road. It will give you confidence to meet with bankers and investors and demonstrate why your ideas are worth their time and resources.
As you get started, consider checking out various online resources available to help craft solid business plans. Among them: sba.gov/business-guide/plan-your-business/write-your-business-plan
Stand Out From Competitors
- Be thorough but concise: Make your case with hard facts.
- Do your homework: Understand your target market and be ready to answer questions.
- Develop your financials: Be realistic with revenue, expense and growth projections.
- Tout your strengths with evidence: Reinforce your belief in yourself with facts and avoid hyperbole.
- Make it personal: Introduce team members by name and stress their individual talents.
Is an Online Business the Way to Go?
For some businesses, it may be tempting to skip the brick-and-mortar operation. If that’s you, expect to have some distinct advantages and disadvantages.
Many of your legal obligations won’t change. You will still need a business structure, name and location (even if it’s your home). You still have to pay taxes, follow laws and secure necessary permits and licenses. And you will still need a business plan.
However, you can also expect to have lower overhead costs, since you likely won’t be paying for a commercial location separate from your house. That does come with a downside — you will be essentially invisible to the physical world. No one is going to see your business while driving or walking by.
Living entirely online will put considerable pressure on your website and social media presence. You need to purchase your domain registration and web hosting service (both typically available from the same company), while making plans to create and maintain the site. You will also want to establish a presence on various social media sites.
Unless you are tech savvy, it may be wise to engage the services of a professional web designer who understands configurations, logo creation, search engine optimization, etc. If you plan to make sales through your site, it is critical that it looks good and performs well.
Online Help is Waiting
There is no shortage of online assistance waiting for fledgling business owners. You can find examples of successful business plans, templates to build your own and plenty of advice. Among the resources:
U.S. Small Business Administration offers advice on choosing the right format, including traditional vs. lean startup plans. sba.gov/business-guide/plan-your-business
Florida Division of Corporations offers a step-by-step guide, with links for relevant state regulatory filings.
dos.fl.gov/sunbiz/start-business
Florida SBDC Network provides a series of live and virtual seminars and training events, including how to start a business. floridasbdc.org/services/training/live-training-calendar
SCORE is a nonprofit organization that helps small businesses get started. The organization offers a wide range of templates, including business plans. score.org
9 Essential Components of a Business Plan
- Executive Summary
Highlight your plan’s key strengths, including where you want to take your company and why your ideas will be successful. - Company Description
This is your extended “elevator pitch” to help potential investors quickly grasp the uniqueness of your business. - Market Analysis
You show that you understand the industry, target market, customers, competitors and pricing structure. - Financial Projections
Summarize projected income and expenses, past credit history, resource allocation and other financial details. - Organization and Management
Lay out your company’s organizational structure and introduce the principals and key members of your management team. - Service or Product Line
This is where you explain the benefits you will provide to current and potential customers. - Marketing and Sales
Describe how you plan to promote your product or service, find customers and generate sales. - Funding Request
Lay out your current and future funding requirements and provide insight into how you will use any funds you receive and the types of funding you prefer. - Appendix
Provide supporting information and documents, including credit history; reference letters; resumes of key managers; leases; licenses, permits and/or patents; a list of business consultants (attorney, accountant etc.); relevant research, magazine articles or book references.