The first thing in a business plan should be a clear description of just exactly what the business does.  It is amazing how many businesses function without ever asking themselves, “What is our business.”  This one simple statement spells out to both the founder and any prospective investors exactly what the business entails.

Even though the financials are usually relegated to an appendix at the end of the business plan at least a summary of them should be included in the executive summary of the business plan.  The financials really should come first because they are what the prospective investors are looking for.  Their attitude is that they are the most important part of the business plan and the rest is drivel.

Remember though that this plan is written for a wide audience including you!  Your having a written plan before your eyes is extremely important as it will act to keep you focused on the job at hand.  The time you lavish on one of these documents is literally an investment in yourself.

Next to be considered is a marketing plan that is nested within the business plan.  This is a clear description of how you will go about marketing your product or service.  It will also tend to reinforce the statement “What is our business?”

Another very important part of the business plan is a description of the product or service you are going to provide.  This is often put forward as how you are going to make the product or service.  Many people do not like the concept but this actually describes the manufacturing process involved in creating your business.  What the raw materials are, what machines are required and the personnel required.  Having this sort of information at your fingertips will go a long way towards helping you to develop your financials; pro-forma, etc.

Last but not least are the resumes of the founder or founders of the new venture.  In case one of your founders thinks he is Napoleon any possible investors might find this information extremely interesting.  Even if Napoleon isn’t around anywhere they would want to know just what kind of people they are dealing with.

Step one in starting a business is making sure you have selected a business that you like, are qualified for, and has a profitable business model. You can easily ruin your life in the short-run, have no fun, and ruin your finances if you have not researched your market and made sure that there is indeed money to be made in the business you have selected. Note that you do not have to be the first person in that market or even come up with something innovative. The world thrives on competition, and if you can do something better, different, cheaper, faster, or in a more unique way than someone else, then you can enter that market and be successful. If you want some thoughts and motivation, read Michael Masterson's book, Ready, Fire, Aim, available on Amazon.com. One inspirational aspect of Michael's book is that he encourages you to just get out and try your business early, and don't worry about making everything perfect. You can do that if the business starts making money. By doing this, you can keep trying until you hit upon a successful formula. It's OK to fail, but keep trying until you successfully started your business.

Step two in starting a business is doing some basic planning to get your business up and running smoothly. One recommendation is to incorporate or form a limited liability company through which you will conduct your business. If properly formed and operated, an entity like this will protect your personal assets from exposure in case you injure someone accidentally in your business. For example, if you are running a flower shop, and a customer slips and falls in your shop, if the customer sues you for her medical costs, she cannot get more than the assets of your business; she will not be able to get to your other personal assets. Two pointers: form your business correctly and maintain separate books, records, and checking accounts from your personal affairs. Commingling of cash and property - business and personal - is a no-no, and can result in your losing the limited liability protection of the corporation or limited liability company. Get a good attorney to help you form your entity properly - it should not cost more than about $2,500 - $3,000 in most high-cost areas, and less in lower cost areas of the country.

Step three: Get going! You have a business plan, you are excited by running your own business, and you have formed your business properly. Get out there and attract customers. You will need to market your product or service on the web, with signs, by direct mail - in whatever manner is likely to reach your potential customers. When you get a customer, go out of your way to serve them well. Your customers' referrals could be a great source of new customers. Get your suppliers in order and try to work out paying them after they invoice you - typically that will give you 30 or 45 days to pay. That will provide some time to get your business going, but treat your suppliers well too, and if there are any hard times, perhaps they will return the favor. Good luck with your business! I hope to buy from you soon!

Before you can hope for success in business, you need to know exactly what else you want: Where do you want to go? When do you want to get there? How do you want to travel? And what's your starting point?

A business plan is used primarily to convince financial backers to invest in a business, but even if you are planning a one-person, work-from-home, low-investment, low-overhead company, the business plan can help you in a number of way.

Don't panic: Writing a business plan is not difficult. You've already done most of the work in your head; now you just need to put those thoughts on paper. A business plan is just the hard copy version of your brilliant ideas.

What Can a Business Plan Do For You?

1. It will help you spot potential problems and ward off catastrophe
2. It will help you organize your ideas.
3. It will reveal gaps that exist in your mental plan.
4. It will help you define your talents, skills, strengths, weaknesses, opportunities, and liabilities.
5. It will help you determine where you are now and give you an idea of where you'll be in the future.
6. It will help you make decisions about the nature and future of your business.
7. It will help you define your goals for the company.
8. It will send a message to employees, customers, and potential investors, telling them that you are organized, business-like, and bound for success.

There is no hard-and-fast rule for writing a business plan, so take the basic elements outlined below and modify them to suit your needs. Then pretend you're a potential investor, a potential client, or your own competition, and read over the plan you've devised. What questions would those people ask after seeing your plan? Do you have answers for them? If not, go back to the beginning and think through your plan one more time.

What Goes Into a Business Plan? Any or All of These:

• Cover page
• Table of contents
• Executive summary
• Market analysis
• History and description of your company
• Marketing strategy
• Organization overview
• Product or service description
• Funding request
• Financial data
• Appendix

Let's take those items one by one and see just how simple this really is.

Cover Page Contains:

1. The name of your business.
2. The name, address, and phone number of the contact person.

Table of Contents Contains:

Exactly that - a list of the contents in your completed business plan.

Executive Summary

The Executive Summary (or Summary, if you feel the former is too pretentious for you) is a synopsis of all the items listed above. It's very likely that potential investors will read only the summary, so spend time on it. It's okay to write the summary after you've put together the rest of the package, but for goodness' sake, don't rush it!

The Summary should provide the reader with an overview of your business, explaining what it is, where it stands, and your vision for the future. Describe the nature and goal of your business, your employees and their assets, your product/s or service/s. Explain why your business is unique, or provides something unique to potential clients.

The Summary needs to be simple, succinct, and snazzy. Keep to within two pages and include only the essential information, such as:

• Your mission statement
• A brief history of your business, including the date of start-up
• Information about owners/management, their skills and experience
• Size, location, and type (sole proprietorship, partnership, corporation) of your business
• The product or service your company provides
• Information about any current investors
• Current status and expected growth of your business
• Future plans for your business

Market Analysis

The object here is to show potential investors that you've done your homework and that you are familiar with your market. Convince them you've researched the industry, that you've studied the competition, and that your target market is clearly defined in your plans.

Include in This Section:

• Any conclusions you've drawn about the market based on your research, including your take on the current status of the market.
• Information and conclusions about your particular target market.
• Everything you know (and it had better be a lot!) about your competition.

History and Description of Your Business

• The exact nature of your service/s or product/s.
• The type of business (sole proprietorship, partnership, corporation).
• Date of start-up.
• Location of the business.
• Facilities.
• Your strategy for making your business competitive.
• Any other information about the business history or status that is pertinent.

Marketing Strategy

• The needs of your target market.
• The number of potential clients for your product/service.
• How/why you are well suited to help your target market.
• Your pricing plan, including details of any group or individual discounts you provide.
• Trends that might affect the numbers or purchasing habits of your target market.
• A secondary market.
• Promotion and advertising strategy.
• Sales force description and strategy.

Organization Overview

• Describe the structure of your company.
• Provide information about the ownership or officers, including profiles and qualifications.
• Explain the departments and functions within your company.
• Provide information about the board members, including names, positions, backgrounds.
• Information about salaries and benefits your company provides to employees .
• Any additional resources related to the organizational structure.

Product or Service Description

• Give a detailed description of the service/product your company provides.
• Include copies of any relevant copyrights or patents.
• Describe any research and development projects, either in progress or planned.
• Stress the unique features of your service or product.

Funding Request

• Your current financial requirement.
• A projection (5 years) of future financial requirements.
• Detailed explanation of how the funds will be used.
• The type of funding you're requesting.
• The terms you desire and a suggested repayment plan.

Financial Data

• A financial history covering the past 3-5 years.
• Income statements.
• Cash flow statements.
• Collateral.
• Forecasted income (1-5 years).
• Balance sheets (quarterly for one year).
• Capital expenditure.

Note: Double and triple check your math!

Appendices

Here's where you put anything that might woo the potential investor. Some suggestions:

• Market share.
• Return on investment.
• Organization charts.
• Credit history.
• Resumes.
• Pictures of your product.
• Letters of reference.
• Market studies.
• Media coverage you've received.
• Licenses, permits, or patents.
• Any related legal documents.
• Leases.
• Contracts.
• List of consultants.
• Census or demographic information.

If all this seems overwhelming, then break it into sections. Work on only one section of information at a time. Enlist the help of your partners. Ask a friend or family member to help you gather and organize information.

Remember to take your time when writing your business plan. Details matter, and giving over a few weeks or even months to preparation will prevent headaches in the future.

To understand the usefulness of a business plan we must first learn what a business plan is.

A business plan is the blueprint, the very foundation of your business, without it the business will come crashing down. Here are a few types of plans and their uses:

1. The Mini Plan: This is a brief overview of your business idea. It is sent out to potential investors quickly gauging investor interest in your idea.
2. The Working Plan: This is the life blood of your business. It contains every detail about your business and is for internal use only. It is used as an operations manual for your employees or for you to gauge your own success and to determine if your business is on course.
3. The Presentation Plan: Basically, this is the working plan with additional pictures and graphs. Since you will be showing this plan to potential investors it must be free of errors and be of the highest quality.

Your business plan can be used to attract potential investors or employees. However, it's most important use is as a guidepost for you. It will give you great insight into weather you're on track to achieving your goals.

One thing's for sure; if you plan to succeed, a business plan is imperative. Without one, you, your employees, and your investors will be flying blind. Your business will stumble around in the dark from month to month, without any real direction.

Congratulations, you have now accomplished a life long dream and everything is perfect. Or it is?

The one area that is most often overlooked when starting your own business is the personal sacrifice and commitment that is required by both yourself and your family. Do you really stop to consider just how much time away from home would be required? Did you stop to consider your health and whether or not your body would be able to physically handle all the additional stresses that come with your own business?

As a business owner myself for the past two years, I realized one day that the personal side of things was one aspect that I did not consider. I have seen my wife and kids a lot less in the past two years and my health has deteriorated greatly as the financial stresses of my business have begun to mount.

When I look back at my situation, I realize that I rushed into things without really taking my family into account. It was a huge mistake but fortunately I have been blessed with a very patient and understanding wife.

If you are about to enter your Self Employed dreams and are just days away from that big Grand Opening, or just considering starting your own business, make sure that you have a Family Plan, in addition to your business plan.

Businesses come and go, the same can not be necessarily said for your family and health.

1. Have a clear personal objective.
2. Be dedicated.
3. Be willing to learn.
4. Possess the ability to delegate.
5. Have sound judgment.
6. Be Enthusiastic.
7. Identify your market
8. Identify your customers
9. Identify your competition
10. Calculate your selling price
11. Identify short-term and long-term goals
12. Research demand
13. Use advertising efforts to entice the consumer to choose your product rather than the competitor
14. Find available sources for cash
15. Hire a professional bookkeeper
16. Budget
17. Be persistent
18. Hire employees that you can trust and rely on
19. Be fair and honest in your dealings
20. Invest a portion of your profits

The big question that economists these days are asking their selves is if it is possible to produce a profitable site based on hosting 'user submitted video's'. The amounts, that for a site as Grouper were paid, are more based on the numbers of users that can be reached and less on the potential yields of the site itself. So happens that News Corp paid 580 million dollars to obtain MySpace.com, although the social-networking-site at that moment had 12 million visitors per month. At the time of the take-over there was criticism about the amount that was paid, but this month Google announced to pay 900 million dollars the coming four years to put search and advertising-services on MySpace. YouTube has approximately 16 million visitors per month.