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.