10 Steps to Preparing Your Business Plan

1. Research: Get as much information on your proposed business as possible. Talk to those already in business, visit the library, learn all you can from trade associations and trade publications, conduct research on-line and find out what help is available from local and federal government agencies.

2. Make your projections: The more you know about your business, the more accurately you can make intelligent projections of sales and potential profits for the first few years. This knowledge is invaluable.

3. Capital: Money. Accept the fact that it always requires more money than you’ve anticipated to start, or improve your business. Have enough working capital on hand and back-up resources just in case the new business does not prosper as you had anticipated.

4. Competition: Know thy enemy. Study your competition carefully; they’ve been in the trenches and have already experienced what you are abut to discover. Read their literature. There is a reason your competitor is in business, and you’d better find out what it is – and how you can turn their customers into your customers.

5. Location: Location. Location. If you can’t go to your customer, your customer must come to you – so make it easy. Pick a prime location or invest in targeted advertising.

6. Image: What kind of public image do you want to create with your service, merchandise, quality, décor, packaging, personnel vehicles, advertising and pricing? How does that image correspond with the customer you are trying to attract?

7. Keep Records: Complete, accurate records are needed to file taxes, to properly manage your bank accounts and most importantly, to give you guidance. Always know where your business stands financially.

8. Professional Help: In addition to professional and confidential SCORE counseling, rely on a competent lawyer, accountant, banker and insurance broker to fulfill your business needs. A marketing professional in you corner may also be needed.

9. Purchasing: Knowing what, when and where to buy and how to gauge inventory can make or break you. It allows you to conserve working capital, reduce obsolescence and meet and beat the competition. Know what sells.

10. Profits: This is the bottom line for which you are going into business. Make sure that all expenses are accounted for, including your own living costs, possible losses, shrinkage, unseen costs such as fringe benefits and taxes. Then add a legitimate profit to your risk. If the profit does not come out right, perhaps you should rethink your idea. Make sure you consult a SCORE counselor for guidance.