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It is free and you might wind $1m..  Of course the odds are VERY VERY low, but....

 

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jim@FinanceProfessor.com

If you are embarking on a long trip most would take a map.  If you are starting a business you need a map as well.  The map is called a business plan.  Business plans are of great importance.  This business plan will lay out your business and how you plan on making money.  They cover the full spectrum of the business from production of the good or service to it marketing and even the financing of the firm.
The Business Plan will  include a pro forma financial statements which are projections.  It will include your target market, the costs involved in meeting customers' needs, a background of the management, and potential problems.

Making a business plan is generally not well liked by entrepreneurs.  (Think about it...right in the middle of the excitement of launching a new company when you have a million other things you want to do, you have to sit down and write a long paper.--sounds fun right!!)  Well liked or not, it has to be done. 

Why must it be done?  Business plans serve as a road map for the future.  As such, many problems can be foreseen and hopefully avoided.  (Continuing with the road map analogy, wouldn't you stop for gas if you see the next place with gas is 200 miles down the road?). 

If the avoidance of problems and the discovery of possible opportunities does not convince you to do a business plan, think of it this way: lenders and equity investors will likely demand a business plan anyway, so you might as well get it out of the way early on in the process and start with one. 

There is no single way to do a business plan, but the majority of plans have mainly the same topics: 

• An executive summary/introduction that lays out a quick overview of what the company will do and why investors should invest.
• The business current market conditions facing the company including opportunities, threats, competition.
• The management team in place and their experience. (Remember in start-ups people are often investing more in the management than in the company itself.) 
• Pro Forma financial statements. These are you looking into your crystal ball and showing what future financial statements (income statements, balance sheets, and cash flow statements) will look like.  This is often the most difficult step and many assumptions must be made. 
• A statement explaining what your financing needs are and how you will be using the money. 
• A section showing financial ratios and expected returns provided the financing is arranged.

Inc. Magazine
The Small Business Administration
American Express
Netbizplans.com
TannedFeet

Once you have a business plan you can then go about raising money for your new venture. 

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