Opinions expressed by Entrepreneur contributors are their own.
You wouldn't set out on a journey without a map, right? Sowhy would you start a business without a plan? "A businessplan provides a road map for a company and its executives tofollow," says Bill Crookston, an associate professor for theEntrepreneur Program at the University of Southern California inLos Angeles.
A business plan isn't just for your own peace of mind,however; investors will demand it when you search for funding. Yourstart-up plan should focus on marketing and financial informationand must portray a route your company intends to follow--financierscould withdraw credit if you don't meet your goals, Crookstonsays. And forget about hiring an expert to do it for you; eachentrepreneur should create his or her own plan, he stresses.
With that in mind, the following three points should beaddressed when drawing up your plan:
1. The management: Who makes up the team? What aretheir titles? What is their experience? According to Crookston,this is often the most important piece of information forfinanciers.
2. The market: Who are your customers? What is thebenefit of your product or service?
3. Financials: What is your projected profit andloss, projected cash flow and, in some cases, projected balancesheet?
Then, keeping it at less than 30 pages, flesh out the plan: Useinformation that includes descriptions of your product, supplierrelationships and inside operations. You should also include plansfor action, growth and contingency.
The final step is to create your on-ramp: a brief overview ofthe plan placed at the front. Then buckle up--you're on yourway.
Contact Sources
Bill Crookston, Entrepreneur Program, University ofSouthern California School of Business Administration, http://www.usc.edu
