Starting a Small Business Part Two

As I promised I will continue to write on how to start a small business. I believe that in a person's lifetime everyone should try self employment.  You may find that you enjoy it and though it may not be easy if your following your passion it will pay off in the long run. Check out the steps below to writing a business plan. Please feel free to ask questions or leave comments....FYI....Sections B and C may have parts in it that do not apply to you unless you are seeking financing or purchasing a franchise.


Elements of a Business Plan                       

1. Cover sheet
2. Executive summary (statement of the business purpose)
3. Table of contents
4. Body of the document
   
   1. Business
      
      1. Description of business
      2. Marketing
      3. Competition
      4. Operating procedures
      5. Personnel
      6. Business insurance
   2. Financial data
      
      1. Loan applications
      2. Capital equipment and supply list
      3. Balance sheet
      4. Breakeven analysis
      5. Profit and loss statements
      6. Three-year summary
      7. Detail by month, first year
      8. Detail by quarters, second and third year
      9. Assumptions upon which projections were based
      10. Pro-forma cash flow
   3. Supporting documents
      
      1. Tax returns of principals (partners in the business) for last three years, personal financial statements (all banks have these forms)
      2. Copy of franchise contract and all supporting documents provided by the franchisor (for franchise businesses)
      3. Copy of proposed lease or purchase agreement for building space
      4. Copy of licenses and other legal documents
      5. Copy of resumes of all principals
      6. Copies of letters of intent from suppliers, etc.