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Business Plan

A business plan can provide you with a pathway to profitability. It can help you focus on critical questions which must be answered if your business is to thrive and grow. A business plan offers at least four primary benefits:

  1. A plan gives you a path to follow. It can help you make your business what you want it to be.
  2. A plan can be a communication vehicle to your employees and future customers.
  3. A plan can help you develop as a manager by helping you to focus on your competition and opportunities.
  4. A plan provides your banker with insight into your goals and objectives.

A business plan produces a working document which can help you accomplish the goals described above. In addition, the thought process you undergo as you complete your plan helps you identify critical issues and questions, and develop effective means of dealing with those questions and issues. Above all, the business plan is a strategy which prepares you to manage your business, rather than allowing your business to manage you. A successful business plan is realistic, factual and objective, presenting your goals in measurable and attainable terms. Business plans take many forms and will vary in length, but all successful plans communicate the following information clearly and concisely:

  1. The nature of your business
  2. The goals and objectives of your business
  3. The steps you need to take to achieve your goals and objectives
  4. An action plan for implementing these steps
  5. Major potential problems and strategies for overcoming these problems

An effective business plan also answers a variety of specific questions, such as:

  1. What service or product does your business provide and what needs does the product or service fill?
  2. Who are the potential customers for your product or service? Why will they purchase the product or service from you?
  3. How will you market to potential customers?
  4. Who are your principal competitors? What are their strengths and weaknesses?
  5. Who are the principal participants in your business? What are their skills and strengths? What management skills are weak, and where will you obtain these skills?
  6. What are the current financial resources of you company? What is the projected financial condition of your company over time?

There is no one "correct" format for a business plan although most effective business plans include the same critical information. A sample business plan outline is available at this site. More important than a specific format, however, is the presentation of ideas in a clear and concise manner.

For assistance in developing your own business plan, contact the Silicon Valley - SBDC Office at (408) 494-0240 in the Silicon Valley.