Prepare A Business Plan
A well-developed business plan is an important key to the success of a new business. It is a guideline that can serve to assist in determining the feasibility and desirability of starting a new business. It will also provide a path to follow during the critical early stages of development. A plan makes it easier for others (bankers, suppliers and advisors) to understand the direction of the business. In preparing your business plan you should:
- Define your business, describing the services or products you plan to offer or manufacture.
- Describe the location of the business.
- Describe the existing market, i.e., its size and characteristics, and the potential for sales and profit. Identify and assess your completion.
- Identify the capital and other assets required for the operation of the business, the equity to be invested, and the source of additional funds that you may require.
- List the personnel required and their duties.
- Prepare an estimate of the projected cash flow for the first year of operation. Do the same for the second year. Calculate the sales break-even point.