Steps in Preparing a Business Plan

The following is a generalized outline for writing a business plan. Listed below are the steps you should follow in preparing your business plan, whether you are writing it for the first time or rewriting it for the twentieth time.

Step One - Identify Your Objectives - Before you can write a successful business plan you must determine what you already know about your company, who will read the plan, what they want to know about your company, and how they intend to use the information found in the plan. The needs of your target audience must be combined with your communication objectives.

Step Two - Outline Your Business Plan - Once you have identified the objectives of your plan, you should prepare an outline based on these special requirements. The more detailed the outline, the better. (A very detailed outline is provided for you shortly). 

Step Three - Review Your Outline - Review your outline to identify the areas that, based on your readers and objectives, should be presented in detail or in summary form. Keep in mind that your business plan should describe your company at a fairly high level and that extremely detailed descriptions are to be avoided in most cases. However, when you are in doubt as to the importance of a piece of information, include it.

Step Four - Write Your Plan - You will find it necessary to research many areas before you have enough information to write your plan. Most people begin by collecting historical information about both the company and the industry before beginning. This historical information provides a good foundation to be used as the introduction of the plan. You must take time to sufficiently research your company and your  industry because many of the assumptions and strategies described in the plan will be based on the findings and analysis  of your research.

The last element of a business plan to be prepared is the Executive Summary. Since it is a summary of the business plan, it cannot be completed until all research, analysis, and presentation of facts have been done.

Step Five - Have Your Plan Reviewed - Once you have completed and reviewed a draft of your plan, have someone familiar with business management and the planning process review it for completeness, objectivity, logic, presentation, and effectiveness as a communications tool. Modify your plan based on the reviewer's comments. The facilitators (and other Franchisees) here are experienced advisors who can help you by reviewing your plan and offering suggestions for improvement.

Step Six - Update Your Plan - Business plans are "living" documents and must be periodically updated or they become useless. As your environment and goals change you must update your plan to reflect these changes.