COVER STORY:

How to create a business plan — and who can help

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The launch of a business typically comes with its ups and downs, and weathering unexpected challenges can be crucial to a new company’s success.

Forming a strong business plan can help entrepreneurs stress-test the feasibility of their ideas, find a market for their products or services and lay the groundwork for growth.

VEGAS INC spoke with SCORE counselor Raj Tumber and Rebecca Fay, director of the Henderson Business Resource Center, for advice and tips on building a business plan.

Getting Started

A business plan is important for showing investors and lenders that an idea is feasible, but often more importantly it shows entrepreneurs the effort it will take to make their company successful, Tumber said. “Lots of people have ideas, but they don’t always work out,” he said. “Planning is the bridge between ideas and execution. It’s a long bridge.”

While some business consultants or lawyers offer business plan writing services, Fay says it’s important that an entrepreneur write their own plan. “It should take some time,” she said. “You need to take a look at your market, do some research, find out who your competitors are.”

Tumber suggests finding a mentor or counseling service, like the free business counseling offered by the nonprofit SCORE, to be a guide through the writing process.

Business planning software, like FundingRoadMap.com or the Ultimate Business Planner, are also often wise investments, he says.

Formatting

Numerous templates and formats for business plans exist, and which specific format works best for your business often depends on what industry you’re in, Tumber says.

Most plans contain several common elements, including: company background, which lays out how the business came into being; its history; its current organization and goals; products or services; a specific description of what the company will sell and the supply chain that will support it; and industry competition, which outlines the current market for the product or service, including primary competitors, market growth and customer profiles.

The most important piece of any business plan, Tumber says, is the marketing section, which outlines how the business will connect with customers to sell its product. The marketing plan will make implementing an advertising campaign easier, and should include a road map of which efforts will be launched first, how much money will be spent on marketing and how the return on investment will be measured.

“The most important thing is identifying your target audience,” Tumber said. “What do customers want, and how do you deliver it?”

The financial assumptions and projections section is often what investors will check first, and should include a thorough accounting of all the business’s financials, including taxes, operating expenses, equity, debt, assets and income.

The final elements of a business plan include long-term goals and strategies for achieving them, and then the executive summary, which goes at the beginning of the business plan but should be written last because it summarizes all the other parts of the plan, Tumber said.

Entrepreneurs should have their final plan checked by an outside mentor or organization — like SCORE, the Henderson Business Resource Center or the Nevada Small Business Development Center — before presenting to investors or lenders, Tumber said.

A well-written plan has a long shelf-life, Tumber said, and can be useful for business owners to consult and modify long after their business has launched.

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