How to Write a Business Plan eBook Download

How to Write a Business Plan

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How to Write a Business Plan we believe accurate, plain-English legal information should help you solve many of your own legal problems. But this text is not a substitute for personalized advice from a knowledgeable lawyer. If you want the help of a trained professional—and we’ll always point out situations in which we think that’s a good idea consult an attorney licensed to practice in your state.

How to Write a Business Plan eBook Download

How to Write a Business Plan

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About the Author

Mike P. McKeever’s education, work experience, business ownership, writing, and teaching careers give him a broad and unique perspective on business planning. He has a BA in Economics from Whittier College and a Master’s in Economics from the London (England) School of Economics and has done postgraduate work in financial analysis at the USC Business School.

Mike has taught classes at numerous community colleges in entrepreneurship and small business management. He has published articles on entrepreneurship for Dow Jones publications, the Sloan Publications Business Journal, and numerous newspapers and periodicals.

Mike has successfully purchased, expanded, and sold a number of businesses, including a manufacturing company, tune-up shop, gas station, retail store, and commercial building. He has worked for a variety of companies ranging from small groceries to multimillion-dollar manufacturers. As an independent business broker, he assessed the strengths and weaknesses of hundreds of companies.

As a senior financial analyst for a Fortune 500 company, he wrote and analyzed nearly 500 business plans. Currently, Mike enjoys email correspondence with a few readers relating to business plan issues. He also acts as a consulting controller and financial advisor to an online retail business. You can contact him at mckeever.mp@gmail.com.

Content

1. Benefits of Writing a Business Plan………………………………………………………………………. 5

  • What Is a Business Plan?……………………………………………………………………………………………………. 6
  • Why Write a Business Plan?……………………………………………………………………………………………… 6
  • Issues Beyond the Plan………………………………………………………………………………………………………. 8

2. Do You Really Want to Own a Business?…………………………………………………………11

  • Introduction…………………………………………………………………………………………………………………………12
  • Self-Evaluation Exercises…………………………………………………………………………………………………..13
  • How to Use the Self-Evaluation Lists……………………………………………………………………………17Reality Check:
  • Banker’s Analysis…………………………………………………………………………………….17

3. Choosing the Right Business……………………………………………………………………………………..21

  • Introduction…………………………………………………………………………………………………………………………22
  • Know Your Business…………………………………………………………………………………………………………..22
  • Be Sure You Like Your Business……………………………………………………………………………………..24
  • Describe Your Business…………………………………………………………………………………………………….24
  • Taste, Trends, and Technology: How Will the Future Affect Your Business?……..30
  • Break-Even Analysis: Will Your Business Make Money?…………………………………………34
  • What You Have Accomplished………………………………………………………………………………………47

4. Potential Sources of Money to Start or  Expand Your Small Business…………………………….49

  • Introduction…………………………………………………………………………………………………………………………51
  • Ways to Raise Money………………………………………………………………………………………………………..51
  • Common Money Sources to Start or Expand a Business………………………………………59
  • Additional Money Sources for an Existing Business……………………………………………….68
  • If No One Will Finance Your Business, Try Again …………………………………………………….70
  • Secondary Sources of Financing for Start-Ups or Expansions……………………………..72
  • Conclusion……………………………………………………………………………………………………………………………75

5. Your Resume and Financial Statement…………………………………………………………….77

  • Introduction…………………………………………………………………………………………………………………………78
  • Draft Your Business Accomplishment Resume ………………………………………………………..78
  • Draft Your Personal Financial Statement……………………………………………………………………85

6. Your Profit and Loss Forecast………………………………………………………………………………..101

  • Introduction………………………………………………………………………………………………………………………102
  • What Is a Profit and Loss Forecast?……………………………………………………………………………102
  • Determine Your Average Cost of Sales …………………………………………………………………….103
  • Complete Your Profit and Loss Forecast………………………………………………………………….106
  • Review Your Profit and Loss Forecast……………………………………………………………………….119

7. Your Cash Flow Forecast and Capital Spending Plan…………………………121

  • Introduction………………………………………………………………………………………………………………………122
  • Prepare Your Capital Spending Plan………………………………………………………………………….123
  • Prepare Your Cash Flow Forecast……………………………………………………………………………….125
  • Required Investment for Your Business……………………………………………………………………135
  • Check for Trouble ……………………………………………………………………………………………………………136

8. Write Your Marketing and Personnel Plans……………………………………………….139

  • Introduction………………………………………………………………………………………………………………………140
  • Marketing Plan …………………………………………………………………………………………………………………140
  • Personnel Plan…………………………………………………………………………………………………………………..152

9. Editing and Finalizing Your Business Plan……………………………………………………157

  • Introduction………………………………………………………………………………………………………………………158
  • Decide How to Organize Your Plan …………………………………………………………………………..158
  • Write Final Portions of Your Plan……………………………………………………………………………….159
  • Create Appendix………………………………………………………………………………………………………165
  • Create Title Page and Table of Contents………………………………………………………………….166
  • Complete Your Final Edit………………………………………………………………………………………………166
  • Consider Using a Business Consultant……………………………………………………………………..168

10. Selling Your Business Plan………………………………………………………………………………………..171

  • How to Ask for the Money You Need ………………………………………………………………………172
  • How to Approach Different Backers………………………………………………………………………….174
  • What to Do When Someone Says “Yes” ………………………………………………………………….178
  • Plan in Advance for Legal Details……………………………………………………………………………….179

11. After You Open—Keeping on the Path to Success………………………………183

  • Introduction………………………………………………………………………………………………………………………184
  • Watch Out for Problem Areas…………………………………………………………………………………….184
  • Getting Out of Business…………………………………………………………………………………………………189

12. Good Resources for Small Businesses……………………………………………………………..193

  • Introduction………………………………………………………………………………………………………………………194
  • Business Consultants………………………………………………………………………………………………………194
  • Books…………………………………………………………………………………………………………………………………..196
  • Pamphlets…………………………………………………………………………………………………………………………..203
  • Magazines—Continuing Small Business Help………………………………………………………..203
  • Computers and Business……………………………………………………………………………………………….203
  • Online Business Resources …………………………………………………………………………………………..206
  • Formal Education…………………………………………………………………………………………………………….209

How to Write a Business Plan eBook Download

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