In the News

By: Tara Saprony, AgExpress Manager

The Elements for Success- Writing a Business Plan

Congratulations! You’ve got a great idea on how you can make a name for yourself and run your own business. Now all you need is to come up with the cash to finance your dream. How do you plan on selling your idea before you can even sell your product or service? You’ve heard that 8 out of 10 businesses fail in the 1st 18 months of operation, and you want to be a success story not a sob story.

The first step of your success begins with a business plan. The objective of a business plan is to plainly explain what your business is about and why others should find it as valuable as you do. The key elements of a business plan are:

 *Executive Summary

 *Business Description

 *Products and Services

 *Market Strategy

 *Organization and Management

 *Financial Management

Depending on the scope and size of your business, the plan might warrant additional elements but beginning with the listed core components will start you on the right track.

Executive Summary is where you describe your vision statement. This is where you show why you are so enthusiastic about your objective. In this section you need to explain details about who you are and what the purpose of the business is. The reader should have a good basic understanding about you and should be enticed to want to know more about your business.

Business Description needs to be clear and concise. What is your mission statement? What does your business stand for? In this section you need to define why the business began, how it came about, what the business goals are and achievements you strive for.

Products and Services should simply describe all the products and services your business sells or provides. The importance of this section is to communicate how you will deliver what the customers want.

Market Strategy is intended to define who your prospective customers are. What research can you provide to determine there is a sustainable need for your product or services? You will also need to address who your competitors are and how your business compares to the competition. In this area you need to highlight the 4Ps of marketing:

 *Price

 *Promotion

 *Product

 *Place

Organization and Management should initially describe the ownership of the company. What type of entity structure and who represents the management team and in what capacity? Use this area to highlight the relevant knowledge and attributes of the management team.

Financial Management should include your current business Balance Sheet, the most recent Income/Expense statement, a projected Income/Expense statement and a business Cash Flow. Key management team members should also provide their financial statements. To wrap up the section summarize your revenue projection by stating how much money the business needs and how you expect to make a profit.

A business plan requires considerable amount of thought processing and organization as well as constant evaluation. By utilizing the described key elements, you have the tools available for prosperity. Statistics reflect that 80% of people don’t set goals, 16% have goals in mind, and only 4% write down goals. By completing the key elements of a business plan you are a member of the top 4% and are well on your way to obtaining the success you seek.