The Beauty of a Business Plan

 

The beginning is always the hardest part. However, forming a solid business plan is one of the most important steps to starting a small business, so you need to craft one carefully. Think of it as a road map for your business' success.

A small-business plan contains an executive summary, a basic company outline (describing your product or service, customers, competition and overall industry), an overview of marketing strategies and comprehensive financial analysis.

When writing the executive summary, you should keep in mind what you want from the person who will read it, whether it's a bank representative or a potential investor. Most people neglect to place this vital part right at the beginning, which is where it belongs. Keep the executive summary concise, but ensure it details why your business will be successful.

The description of your company should include its history as well as objectives and goals.

When detailing your product or service, say why it is unique -- possibly in the face of similar industry competition. Why is there a need for your specific product or service? Does your company own any patents or trademarks or need to own them? Are there any barriers that will prevent your service or product from coming into the market? If so, how will you deal with those?

You'll also need a thorough analysis of your market or industry. What percentage of the market do you think you can capture with your product? Include a detailed description of your niche, and be able to address how your market share might increase (or decrease) over time.

TheStreet Premium Services    For Personal Service: 877-471-2967

Jim Cramer
Jim Cramer's Action Alerts PLUS:
Trade right alongside a Wall Street pro — enjoy access to his Charitable Trust portfolio and be sent trade alerts BEFORE he makes a move. Learn More
New: ETF Profits
ETF Profits:
Get money-making ideas from the hottest investment vehicle on the planet. Our experts show you how to play various ETF sectors to help pump-up your portfolio. Learn More
OptionsProfits
OptionsProfits:
Get 50+ trade ideas a week from the industry's top options experts. Plus — exclusive commentary on market trends and essential trading tools. Learn More
Doug Kass
Real Money:
Our team of professional Wall Street Pros — including Jim Cramer, Doug Kass, and Nicholas Vardy — delivers intelligent analysis, timely trade ideas, and colorful commentary. Learn More
Stocks Under $10
Stocks Under $10:
Break into the market with small- and mid-cap stocks... all $10 or less! David Peltier tells you exactly which low-priced stocks he's buying and selling. Learn More
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
blog comments powered by Disqus
Dow Jones S&P 500 NASDAQ 10-Year Note
12,801.23 1,342.64 2,903.88 19.69
Oil *
117.67
DOWN
89.23
DOWN
9.31
DOWN
23.35
DOWN
0.78
10 Yr
1.97%
SPDR Gold
167.14
-0.69%
-0.69%
-0.80%
-3.81%
Data delayed 20 minutes

Top Stories and Tools

Brokerage Partners

After the Bell

Before the Bell

Booyah! Newsletter

ETF Daily

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

We respect your privacy.
Podcasts

Connect with TheStreet