Developing a Business Plan

• I'm building my business plan for one of these purposes
  
  • Secure loans
  • Attract equity investments
  • Show vendors or landlords
  • Attract managers and employees
  • Solidify internal focus
  • Other ________________
• I have a clear concept
  What is it? Can you clearly articulate it in 3 sentences?
• I've done a viability study
  A viability study is an in-depth analysis that will help determine whether your business will be a success based on available metrics, including current economic conditions, presence of competition, and social factors, etc.
• I know my target customer profile
  It is important to define who will be your customer. If you’re selling cupcakes, are they for kids, or childless urban professionals? There will be a difference in how you structure all aspects of the business accordingly. You need numbers here. How many customers are there near your intended location? What type of volume do they consume?
• I know generally where I’ll locate and why
  Part of business planning is narrowing in on the right location for your store. While you don’t have to have the exact building picked out, your investors will want to see what types of locations you’re looking at and why. Note that the most convenient location for you may not be where your business will be most successful.
• I understand my competition
  "I don't have competition" is never an acceptable answer. Everyone has competition, even if not direct. If you are selling lawnmowers, your direct competition would be other shops that sell lawnmowers, but indirect would include landscaping services, teenage neighbors (and, don’t ignore lawn replacement trends for your area in your viability section!). For each competitor, you’ll need to acknowledge what they’re doing wrong & right, and how you’ll do it better without being copied.
• I know what products/services I'll carry & why
  First and foremost, is there a market need? If so, what is it? Are there seasonality factors with your products/services? How will you prepare for sudden rapid demand, or move excess inventory? How will you ensure your products don’t become stale (and we’re not just talking about food)? Will you display your products in any interesting way? How will you make them special?
• I know how I’ll use modern technology
  Are there unique ways you can use technology in-store to enhance your shoppers experience or increase sales (think Apple’s wandering sales staff who can sell remotely)? How will you use your website to tie in to your physical location? How will you make use of powerful social media tools like Facebook and Twitter to complement your business?
• I understand how I’ll market myself
  Think beyond newspaper ads. How will you generate PR buzz about your business? How will you get your customers to tell their friends? How will you interact with complementary local businesses? What sort of events will you hold? Will you advertise online?
• I need money, and understand how to get it
  This is a biggie. Too many retailers fail by inaccurately forecasting how much they’ll need to survive their first year. Your investors will be paying close attention to this part, so it needs to be good. Are you looking for loans, or investments? What return do you expect to give investors for their trouble?

This is just the beginning… a business plan may need to include many other components, based on what particular business you’re building and who you will be writing it for. Since there are so many variables, we highly recommend avoiding taking a template approach to writing your plan. You need a personalized plan that gets the job done.

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