WorkOne for Entreprenuers: Part II

The Indiana Department of Workforce Development, the Eastern Indiana Regional Workforce Board, WorkOne and our partnership agencies and organizations suppport and build programs to encourage and to help entrepreneurs and businesses succeed. If we can help our entrepreneurs begin and grow their businesses in Region 6, those businesses will create jobs and that helps the economy in not only our region, but the entire State of Indiana.

What Is a Business Plan and Why Do I Need One?

You have done some market research and have found a product or service to sell that you're passionate about. It's time to write the often dreaded business plan.

Think of your business plan in terms of the road map you would take with you on vacation. The map shows you the way to go to your destination, much like a business plan will lead you to business success.

Your business plan does not have to be long and complicated for it to serve its purpose. If you take an afternoon and answer the following five questions about your business, you will have a cohesive business plan with which you can begin your trip to success.

Five Key Elements of an Effective Business Plan:

1. What is your vision for your business in the next 12-24 months?
2. What is your mission—why does your business/practice exist?
3. What are your key objectives?
4. Which basic business strategies will you employ to help achieve your business objectives?
5. Which actions will you take to achieve your business objectives?

If you plan to get financing for your business, then your business plan will be more detailed but that should not scare you. You can still start your plan by answering the same basic questions and then add the financial aspects. This is the same starting point for everyone who owns a business. And, if you already have a business but no plan, NOW is the time to write one!

Also keep in mind that this business plan is not set in stone. What you write today may change by next month or next year. It is merely a plan of what your business is, how your business should run, how you will measure your success and/or growth, how you will make sales, and what steps are needed to make all of this happen.

The following is a simple business plan outline provided to me from the Small Business Development Center, www.ISBDC.org. This outline, along with other items referenced throughout my series on entrepreneurship, are available by visiting the "Grow Your Business" section of www.Work-One.org.

Simple Business Plan Outline:

Executive Summary: A synopsis of your business plan, specifically tailored to be read by investors or key stakeholders in your business.

Company Description: A background of the history of this business if existing, or if it is a start-up, a background of why you see the need for this in the marketplace.

Product or Service: Describe, in detail, what specifically you are selling. Think of this as a menu of all of your products and/or services.

Market Analysis: You need to know your market. Think specifically about who your customers are, what their needs are, how you can fulfill those needs, where they are, how they are having these needs currently fulfilled.

Competition Analysis: Think of all your potential customers from your market analysis and how else they can have their needs met aside from your business.

Marketing Strategy: How do you plan to let your customers know about your business? Be specific about methods you will use and how much marketing will cost your business.

Operations and Implementation: Think about your management responsibilities and overhead costs. What will your rent cost you? What types of insurance will you need? What are your utility needs? How will you keep your books? What will it cost you to run your business on a day to day basis.

Management Team: Describe the organization (business structure) and the key management team members. Be honest about capabilities of all key members.

Financial Analysis: Make sure to include, at the very least:

• 3 years of Profit & Loss projections
• Next (or first) year's cash flow statement
• 3 years of balance sheets
• Breakeven analysis
• Start-up or expansion capital/expense worksheet.

Do you have a question about how Government Grants and Patents really work? Next week I will supply information, web site links and real answers on the truth about these two topics and where and how to succeed without getting ripped off.

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Tracy Dishman is the marketing director for WorkOne and Eastern Indiana Regional Workforce Board (EIRWB). Readers may write to Dishman at P.O. Box 1856, Muncie, Indiana 47308-1856 or tdishman@work-one.org.