List of business entities Forms of business ownership vary by jurisdictionbut several common entities exist: A sole proprietorshipalso known as a sole trader, is owned by one person and operates for their benefit. The owner operates the business alone and may hire employees. A sole proprietor has unlimited liability for all obligations incurred by the business, whether from operating costs or judgments against the business.
Once that is complete, the next step is to write a business plan. This article describes your business and everything you will need to turn it from an idea into an actual going concern.
Whether you are launching a new business or expanding an existing entity, you must have a written plan.
The business plan serves two important functions: First, it acts as the blueprint that guides the construction or expansion of your business. Once your plan is complete, you should have a map that begins today and leads you to a point where your business is operating successfully.
The business plan will also be your primary tool as you pitch investors in an effort to secure the funding that you need. Most entrepreneurs need more money than they have to get their business off the ground.
If you will be seeking any outside funding, you will find a business plan to be an indispensable element in that process.
Getting started Before you begin writing a business plan, you should familiarize yourself with this type of document. Small Business Administration was created in the s to help support, assist, and protect small businesses.
The site details the elements of a business plan, explaining in detail what each section should contain. It also offers sample plans and a wealth of other information on writing a plan and starting a business.
One thing I noticed is that while some sections turned up in every plan that I saw, not all plans include every possible section. Depending on the specifics of your industry, you may choose to include certain elements and leave others out.
Go through the possible sections and ask yourself two questions: Would this section help me to plan and execute the launch or expansion of my business? Would this section help convince an investor to fund my business? But it is worth thinking a bit about your writing style.
Remember — less is more. Try to keep sentences and paragraphs short and succinct. Never or almost never use five words where one will do. And, pay attention to your verbs.
The best way to keep someone engaged in a document like a business plan is to move it along with active, exciting verbs. Executive Summary Every business plan should begin with an executive summary. It should say who you are, what you do, and a little bit about what makes you and your business special.
While every section of a business plan matters, the executive summary remains particularly important, especially for the goal of securing funding. Professional investors are busy people who see many, many business plans.
Often, they read the executive summary in order to decide whether to read the rest of a plan. If they are not wowed by the executive summary, they are likely to move on.
Many people see or hear the title executive summary and assume that they must summarize the entire plan. Do not fall into this trap. Focus on what is most important and keep your executive summary to one 1 page if possible.
Market Analysis The market analysis section gives an overview of the market in which your business will participate. Are you competing locally or nationally?
You should give some sense of the size of your market, as well as the competitors currently in the field and others that you expect to enter. You can also talk about market factors specific to your business or industry.
For example, in the market analysis section of the Pure Green expansion plan, I touch on the regulatory and legal implications of operating in the cannabis industry. Organization and Management This section should describe the organizational structure of your business, but the main focus is you and your team.
Start with the owners and talk about what makes them qualified to run this type of business. Mention other key employees as well.
If you have any members of your management team already, or if you are a going concern, highlight these folks. For example, if you have a master grower or lab director with a Ph.John-Paul Iwuoha is an author, impact entrepreneur, business strategist and founder of Smallstarter Africa.
He works with entrepreneurs and investors to start up and grow businesses in Africa. His work and articles have been featured on several local and international media, including CNN, The Huffington Post, The Africa Perspective Magazine, Business Day and LinkedIn Pulse, among others.
The market analysis section of your business plan should illustrate your industry and market knowledge as well as any of your research findings and Margaret Enterprises LLC Finest accounting and tax preparer services in the San Fernando Valley.
BUSINESS PLAN SAMPLE Wedding Consultants source business plan pro, Palo Alto Software, Inc. Executive Summary TLC Wedding Consultants is a full service company that provides complete. Your business plan should be a living and breathing document that contains your goals and your plan for reaching them.
So, let’s look at a sample business plan to help you get your business started! Business Plan Sample. BOB’S RENT-A-BIKE, LLC (DATE) CONTACT: Bob Adams, Founder Main Street This business plan is confidential. Companies across every industry will need to become more nimble and responsive to remain competitive in today’s fast changing marketplace.
Our Encyclopedia of Small Business is a comprehensive and easily accessible reference source for entrepreneurs that demand practical information that can be applied to their own business.