A business plan is your approach to fulfilling the short and long-term goals of your business, so it should be unique to you.
One of the best practices for developing a business plan is to write out the details of your plan in a document or create a slide presentation.
The elements of this written plan often include, but are not limited to:
Tip: If you are going into business with one or more partners, the business plan should have relevant input and approval from all partners.
Having a clear financial plan can help you establish a good foundation when launching a business.
The financial section generally consists of three key elements:
This is a way to project estimated gross income. Sales forecasts address short- and long-term financial goals, as well as pricing and economic trends specific to your industry.
This provides aggregate data on the inflow of cash your company will receive against the outgoing cash that pays for business operations.
A P&L is a declaration of the income and expenses incurred during a set period of time. Oftentimes, these periods are yearly and/or quarterly.
From the beginning, it’s important to know what type of business structure best fits your needs. This can ensure you complete the correct paperwork.
There are many business types, with four main classifications: sole proprietorship, partnership, corporation, and limited liability corporation (LLC). Within these categories, there are several ways to structure your business. Seeking professional advice could help you choose the best structure for your business.
Depending on the business type, your first step may be to register the name of your business in your state. Then, if applicable, apply for your Employee Identification Number (EIN). This nine-digit number is what the Internal Revenue Service (IRS) assigns to businesses, mainly for tax purposes.
If your business requires it, you must then register your business with any other relevant state or local agencies, such as a revenue office.
Once this is complete, consider opening a business bank account. Keep in mind that many banks require proof of registration and an EIN number.
Business Financing
Business loans are a traditional way to get financing for your business, but certain loans may not always be accessible to you. Be prepared to explore alternatives, and know the alternatives that may be out there.
Business Planning
A breakdown of documents you'll need and what to take into consideration when getting your business off the ground.
