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Knowing how to write a business plan is an essential skill for an entrepreneur with a small business idea. Starting a business is a lot of work, and a good business plan shows you've done your research and have a marketing plan. It can be helpful to use a business plan template when putting yours together for the first time, to make sure you include all the necessary sections. Here is an outline to follow when writing or evaluating a business plan.

1. Executive Summary

a. Description of Business Opportunity: Brief overview of who/what/where/how.

b. Key Innovative Features of Opportunity: What differentiates this concept?

c. Overview of Market and Profit Potential: Briefly, how is the outlook for this concept based on the market research?

2. Product/Service Section

a. Description of Products and Services: What is the focus and scope of offerings? This could be formatted as a list in addition to a narrative description.

b. Discussion of Key Innovative Features: This section should elaborate on 1.b.

c. Production/Delivery Processes: How will the product/service reach customers?

d. Service, Warranties, Returns, etc.: What is the policy if customers are not satisfied? A clear system of guarantees, warranties, refunds and/or exchanges should be stated.

3. Marketing Section

a. Overview of Industry: What is the rate of growth for this industry? This section should demonstrate that diligent and relevant research has been done.

b. Discussion of Potential Target Markets: What are the demographic groups for targeted customers? Baby Boomers, Dog Owners, etc.? What are the relevant characteristics of those groups with regard to values and spending?

c. Competitive Analysis: Who are the competitors? How many of them are there? Will this concept also compete with the option of potential customers providing this service pr product for themselves at home, as may be the case with a service like dog grooming? This section should acknowledge any viable competition and have a plan for success despite that competition.

d. Pricing Strategies: How will prices be set for services and products? Are they the lowest in town, highest, or neither? How and why is that price point justified?

e. Market Penetration Strategies: How will this business enter the market and get its first customers? Word of mouth? A grand opening? Discounts?

Good marketing research is crucial. Get the basics from this Introduction to Qualitative Market Research.

4. Financial Section

a. Start-up Costs for Venture

This section should itemize start-up costs by category, including categories for legal costs, advertising, initial inventory, building improvements, signage, utilities, rent.

b. Financial Assumptions

How much will the business cost per year? These assumptions should be itemized for advertising costs, charitable contributions, credit card fees, maintenance and repair costs, office expenses, telephone costs, utilities, and wages.

c. Three-Year Annualized Income Statement Projections

This item may be attached to the end of the document as an appendix. If you don't know how to prepare this section, reference the Income Projection Statement from Small Business Notes.

d. Initial Balance Sheet Projection

This item may be attached to the end of the document as an appendix.

e. Break-Even Analysis

When will the business break even? In the first month? Sixth month? Second year? This section should include the figures upon which this calculation was based. For assistance, see the Break-Even Analysis Calculator from University of Baltimore.

f. Potential Sources of Funding

This section should identify potential sources, which may include entrepreneur's personal savings, friends and family, short-term bank loan, and/or investors.

g. Feasibility Analysis

Is the start-up worth it? This section should consider the likelihood of the business to reach positive cash flow, as well as the projected profit margin, and make the call about whether or not the business concept is feasible.

http://suite101.com/business-plan-template-how-to-outline-your-business-idea-a327932