Business Plan Tips

Make Assumptions - Although it is impossible to predict the future of you business you can make assumptions so that you can be prepared for it better. Make sure you do your homework Researching your market will help you pick out trends, identify, industry norms. It is important that you don’t leave your reader of the plan guessing, especially lenders.

Develop operating plans - Make sure you include a risk assessment plan in your planning. I.e. What happens if? How much? Who’s my competition? Who are your customers/clients?

Develop financials - Your financials include your balance sheet, income statement, and cash flow statement. To prepare these ask yourself questions like: What are the day-to-day and month-to-month requirements (costs) of running my business? What is my business's "break-even" point (ie., the point in the operation of your company when revenues and expenses are exactly equal)? Do I have the capital required for my business or will I have to raise it? Can I get it from friends and relatives? Will I have to go to a bank, or will I have the type of business that appeals to a venture capitalist?

Communicate - You business plan is a very powerful tool, so use it effectively. Make sure you are able to communicate with others. The plan must be able to convince people that your business work!