The chapter on management should be an elaboration on the
people operating the business. Those people that actually run the
business, their job, titles, duties, responsibilities and
background resume's. It's important that you "paint" a strong
picture of your top management people because the people coming
to work for you or investing in your business, will be "investing
in these people" as much as your product ideas. Individual
tenacity, mature judgement under fire, and innovative
problem-solving have "won over" more people than all the AAA
Credit Ratings and astronomical sales figures put together.
People becoming involved with any new venture want to know that
the person in charge-the guy running the business knows what
he's doing, will not lose his cool when problems arise, and has
what it takes to make money for all of them> After showing the
"muscle" of this person, go on to outline the other key positions
within your business; who the persons are you've selected to
handle those jobs and the sources as well as availability of any
help you might need.
If you've been in business of any kind scale, the next chapter
is a picture of your financial status-a review of your operating
costs and income from the business to date. Generally, this is a
listing of your profit & loss statements for the six months, plus
copies of your business income tax records for each of the
previous three years the business has been an entity.
The chapter on the explanation of your plans for the future
growth of your business is just that-an explanation of how you
plan to keep your business growing-a detailed guide of what
you're going to do, and how you're going to increase your
profits. These plans should show your goals for the coming year,
two years, and three years. By breaking your objectives down into
annual milestones, your plan will be accepted as more realistic
and be more understandable as a part of your ultimate success.
Following this explanation, you'll need to itemize the
projected cost and income figures of your three year plan. I'll
take a lot of research, an undoubtedly a good deal of erasing,
but it's very important that you list these figures based upon
thorough investigation. You may have to adjust some of your plans
downward, but once you've got these two chapters on paper, your
whole business plan will fall into line and begin to make sense.
You'll have a precise "map" of where you're headed, how much it's
going to cost, when you can expect to start making money, and how
much.
Now that you know where you're going, how much it's going to
cost and how long it's going to be before you begin to recoup
your investment, you're ready to talk about how and where you're
going to get the money to finance your journey. Unless you're
independently wealthy, you'll want to use this chapter to list
the possibilities and alternatives.
Make a list of friends you can approach, and perhaps induce to
put up some money as silent partners. Make a list of those people
you might be able to sell as stockholders in your company-in
many cases you can sell up to $300,000 worth of stock on a
"private issue" basis without filing papers with the Securities
and Exchange Commission. Check with a corporate or tax attorney
in your area for more details. Make a list of relatives and
friends that might help you with an outright loan to furnish
money for the development of your business.
Then search out and make a list of venture capital
organizations. Visit the Small Business Administration office in
your area-pick up the loan application papers they have-read
them, study them, and even fill them out on a preliminary
basis-and finally, check the costs, determine which business
publications would be best to advertise in, if you were to
advertise for a partner or investor, and write an ad you'd want
to use if you did decide to advertise for monetary help.
With listing of all the options available to your needs, all
that's left is the arranging of these options in the order you
would want to use them when the time come to ask for money. When
you're researching these money sources, you'll save time by
noting the "contact" deal with when you want money, and whenever
possible, by developing a working relationship with these people.
If your documentation section, you should have a credit report
on yourself. Use the Yellow Pages or check at the credit
department in your bank for the nearest credit reporting office.
When you get your credit report, look it over and take whatever
steps are necessary to eliminate any negative comments. Once
these have been taken care of, ask for a revised copy of your
report and include a copy of that in your business plan.
If you own any patents or copyrights, include copies of these.
Any licenses to use someone else's patent or copyright should
also be included. If you own the distribution, wholesale or
exclusive sales rights to a product, include copies of this
documentation. You should also include copies of any leases,
special agreements or other legal papers that might be pertinent
to your business.
In conclusion, write out a brief, overall summary of your
business- when the business was started, the purpose of the
business, what makes your business different, how you're going to
gain a profitable share of the market, and your expected success
during the coming 5 years..
The last page of your business plan is a "courtesy page"
listing the names, addresses and phone numbers of personal and
business references-persons who have known you closely for the
past five years or longer-and companies or firms you've had
business or credit dealings with during the past five years.
And, that's it-your complete business plan. Before you send it
out for formal typing, read it over once a day for a week or ten
days. Take care of any changes or corrections, and then have it
reviewed by an attorney and then, an accountant. It would also be
a good idea to have it reviewed by a business consultant serving
the business community to which your business will be related.
After these reviews, and any last-minute changes you want to
make, I'll be ready for formal typing.
Hire a professional typist to type the entire plan on ordinary
white bond paper. Make sure you proof-read it against the
original. Check for any corrections and typographical
errors-then one more time-read it through for clarity and the
perfection you want of it.
Now you're ready to have it printed and published for whatever
use you have planned for it-distribution amongst your partners
or stockholders as the business plan for putting together a
winning financial proposal, or as a business operating manual.
Take it to a quality printer in your area, and have three
copies printed. Don't settle for photo-copying..Have it printed!
Photo-copying leaves a slight film on the paper, and will
detract from the overall professionalism of your business plan,
when presented to someone you're trying to impress. So, after
going to all this work to put together properly, go all the way
and have it duplicated properly.
Next, stop by a stationery store, variety store or even a dime
store, and pick up an ordinary, inexpensive bind-in theme cover
for each copy of your business plan. Have the holes punched in
the pages of your business report to fit these binders and then
slip each copy into a binder of its own.
Now, you can relax, take a break and feel good about
yourself..You have a complete and detailed business plan with
which to operate a successful business of your own. A plan you
can use as a basis for any financing proposal you may want to
submit..And a precise road-map for the attainment of real
success...
Congratulations, and my best wishes for the complete
fulfillment of all your dreams of success!!!
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