The Business Plan

If you know your business idea is sound, the next step is to prepare some sort of business plan. Truth be told, most small businesses are started without any type of plan. Some of the greatest businesses in the world were started on a cocktail napkin. However, this is not the course we recommend, especially if you intend to receive a small business loan or other funding in the future.

To get an overall idea of the Business Planning process, you can visit the Small Business Administration’s (SBA) site dedicated to Business Plans. Don’t underestimate the power of a good business plan. It forces you to check your assumptions and can help guide you through the difficult startup phase of your business.

There are 3 basic types of business plans:

1. A Simple Business Plan
2. A Comprehensive Business Plan (done via book, web or software)
3. A Professionally Written Business Plan

Explore all three options below to see which is the best fit for you.

1. A Simple Business Plan

A simple Business Plan can be no more than one page in length and is probably more than enough for most small businesses. However, don’t be fooled by its length; a well thought out simple business plan can be a positive force throughout the life of your business and most certainly during the startup phase.

Instead of detailing a simple business plan here, there is simply no better resource than the book and companion CD-ROM by Jim Horan called "The One Page Business Plan". This remarkable book with CD-ROM provides everything you need to prepare a simple business plan step-by-step.

Visit the following link to learn more: The One Page Business Plan by Jim Horan (amazon.com)

2. A Comprehensive Business Plan

If your company will be applying for business loans or lines of credit, a simple business plan may not be enough to satisfy the requirements of a bank or investors. Therefore, we’ve listed some great resources for those looking to build a more comprehensive business plan.

• Business Plan Pro — the most popular business planning software
• Recommended Book — Business Plans that Win $$$ (amazon.com)
• Bplans.com — sample business plans, calculators, tips and advice

3. A Professionally Written Business Plan

For those entrepreneurs that are looking for a fairly large amount of investment money or venture capital, a professionally written business plan may be the way to go. The cost is usually $600 and up depending on the complexity of the business plan.

• Ethos360.com — offers MyNewCompany visitors a free business plan consultation.