By: Nisa Jones

How to Create aBusiness Plan in

Less than an Hour

About the Author:

Nisa Jones is the CEO and founder of Open Books Financial. Throughout hercareer, she has helped small business owners and nonprofit directors start,

setup, and maintain accurate and transparent financial books. Before startingOpen Books Financial, Nisa worked 8 years as a corporate accountant for

various corporations. Her passions have led her to create digital content forher peers and clients in order to assist them in answering the financial andbusiness questions they may face on a regular basis. Be on the lookout for

her other titles coming soon!

Congratulations!

You have decided to start your first business. I know you're ready to jump in,but wait just a minute! We want your business to be long-lasting, lucrative,

and structured. Therefore, it's best to do a little planning first. Use this guideto make a HIGH LEVEL plan of the most important parts of your business, so

you can fill in the details later. We have even included space so you canprint and use it as your guide! Be sure to share this download link with your

entrepreneur friends so they may use it to plan their businesses.

We guarantee this guide will help you to write down the most importantdetails of your business in an hour or less....Now, let's get started.

Executive Summary: A snapshot of your business as a summary. Company Description: Describes the nature of your business and what you do. Products and Services: The products and services you will offer/are offering. Marketing Plan: How you will market your business and your sales strategy. Management & Organization: Your business structure and who will run the show. Start-up Costs: How much money you'll need to begin and continue operations. Financial Projections: Include financial statements such as balance sheets and profit and loss. Other Analysis/Appendix: An optional section that may disclose additional info such as permits.

The Parts of a Business Plan

Every business needs to have a written and organized business plan. Whether it’s to provide direction or attract investors, a business plan iscrucial for the success for your organization. But how do you write a one? The Small Business Administration recommends a standard business planinclude the following:

The most in-demand smallbusinesses are e-shopping and mailorder, software publishers, computerservices, and service specialists for

buildings/residences.

Did You Know?

We now have a basic understanding of each category, but in the event you stillneed some guidance on what needs to be done before your first draft, here are 6

steps to writing an effectively drafted business plan:

Research and analyze your project, market and whatyou can bring the industry. Many experts actuallysuggest spending twice as long researching,evaluating and thinking than you do drafting thebusiness plan. You must know your company,product and competition on an intimate level. How can you conduct this research? The Internet isprobably your greatest tool. You can conduct quickGoogle searches for local competition as well asread reviews on social media for what your marketmay like and dislike. This is all free knowledge! Remember, it’s your responsibility to knoweverything you can about your business and theindustry that you’re entering. Read everything youcan about your industry and talk to your audience.

open books financial

1. Do Your Research!

Did You Know?49% of business owners get the ideafor their business at their previous

job, 16% get inspiration at the kitchentable, and 9% while on vacation, at a

party or some networking event.

2. Determine your purpose.

Your business plan may need to highlight certainareas more depending on your purpose. Yourplan acts as a road map, providing generaldirections, but it's important to keep youraudience in mind. If the main goal of yourbusiness plan is to attract investors, your plan willhave a different purpose and will therefore needto target them directly. You may spend moretime on the financial goals or funding of yourbusiness.

open books financial

3. Document all aspectsof your business.

Investors want to make sure that your business isgoing to make them money. Due to thisexpectation, investors want to know everythingabout your business. To help with this process,document everything from your expenses, cashflow and industry projections. Also, don’t forgetseemingly minor details like your location strategyand licensing agreements.

4. Have a strategicmarketing plan in place.

A great business plan will always include astrategic and aggressive marketing plan. Thistypically includes achieving marketing objectivessuch as: Introducing new products, extending orregaining market for existing products, enteringnew territories for the company, boosting salesin a particular product, market or price range. Each marketing objective should have severalgoals and tactics for achieving those goals.

5. Make it adaptable.

The potential readers of a business plan can vary,ranging from bankers and venture capitalists orpotential employees. Keep in mind that differentreaders have different interests and may also sharesimilar interests. If you know these interests up-front, you can be sure to take them into accountwhen preparing a plan for that particular audience.For example, bankers will be more interested inbalance sheets and cash-flow statements, whileventure capitalists will be looking at the basicbusiness concept and your management team. Themanager on your team, however, will likely use theplan to remind themselves of goals and objectives.With each of these possibilities in mind, make surethat your plan can be modified depending on theaudience reading your plan.

6. Explain why you care.

Whether you’re sharing your plan with aninvestor, customer or team member, your planneeds to show that you’re passionateand dedicated, and you actually care about yourbusiness and the plan. You could discuss themistakes that you've learned, list the problemsthat you’re hoping to solve, describe yourvalues, and establish what makes you stand outfrom the competition. When I started myaccounting business, I set out to provide thebest service possible to the passionateexecutive directors and small businesses who Imet when networking. I wanted my personal values instilled within the business, so when amember interacted with our clients, our values'community, flexibility, and sensibility' would flowfreely. By explaining why you care about your business, your audience can gain a better sense of you and your business. This can inspire supportboth emotionally and financially.

open books financial

What is the purpose of your company? What problem(s) do you aim to solve?

What are your goals as a company?

Describe your target market.

Now, that you have a basic understanding of each category and a few tips, usethe following questions to complete each section of the business plan. If you don'tknow all of the info, research and fill-in later.

Company Description

Why did you start your company?

What products/services will you provide?

What unique features do your products/services contain?

Will you use suppliers for your products? List them.

Will your products/services require special licenses/permits?

How will you price your product/services?

Products and Services

open books financial

open books financial

Do some research on your industry. What do you find?

Who is your target consumer?

Which platforms will you use to market your business?

Marketing Plan

open books financial

Who are the owners and key employees? Support team?

How much will you need to start your business? Detail the item and respective estimate below.

Management, Organization & Start-Up Costs

Select your company structure:

Sole ProprietorshipPartnershipCorporationS CorporationLimited Liability Company (LLC)

Learn more here: https://www.sba.gov/business-guide/launch-your-business/choose-business-structure

Item: Cost:

Inventory $ 5,000

Website $ 250

Total:

Example:

For start-up technologyinvestments, 53% purchase alaptop or desktop computer,13% a scanner, printer, fax;

and 9% purchase a cell phone.

Did You Know?

open books financial

At minimum, create a projected balance sheet and income statement:

Income Statement Sample:

Financial Plan

Income

SalesServicesOther Income Total Income Expenses

AccountingAdvertisingBank ChargesDepreciationInterestOffice SuppliesPostageTransportationSalaries & Wages Total Expenses

150,00050,0002,000

$ 157,000

12,0005,0003002,000120

1,000

6,000

1,50065,000

$ 92,920

Balance Sheet Sample:

Assets

Liabilities

Equity

CashAccounts ReceivableInventory

Accounts PayableWages Payable

Retained EarningsPaid in Capital

4,0001,5005,000

2502,500

6,0001,500

Total Assets

Total Liabilities

Total Equity

$ 10,500

$ 3,000

$ 7,500

* Tip: Most projections will cover several periods of time. Try to projectthe first year of operations month by month and year by year. Foradditional help on constructing financial projections, visit this link -

https://www.score.org/resource/financial-projections-template

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Additional Information/Notes?

Other Analysis/Appendices

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That should cover it...for now.

Remember, this is a HIGH LEVEL plan.  Some businesses willrequire much more information than what was outlined in this

guide, while some businesses may require less.

It is up to you to do the adequate research and planning to ensureyou have captured the details you need to get started.

Starting a business is an exciting and creative process, so have fun,

enjoy, and do not be afraid to learn along the way.

Need a little more help? Send us an email atinfo@openbooksfinancial for a 1-1 consultation.