How to Write a Business Plan in a Few Hours

Rise early, work hard, strike oil. ~ J. Paul Getty

Automaker Henry Ford observed, “Thinking is the hardest work there is, which is probably the reason why so few engage in it.” That’s the reason, too, why 90 percent of new businesses fail within the first five years. Not a good sign.

That’s where the process of thinking through the business of either starting a new business, or running one that’s already existing, is an art and a science. Not a luxury to forgo, indeed.

It’s not as hard an exercise as some may think. Insights gleaned from creating and developing a business plan unique to your company? Priceless. Many entrepreneurs say the best quality of being in business is—nothing is etched in stone. And, working through your business plan is an ongoing tool that helps refine and evolve your business successfully.

Creative spirits that business owners are, they relish opportunities to go with the flow of market demands and the guidance business plans give in innovating rapidly to keep up with market forces of demand, or non-demand.

So, put on your thinking cap to envision all the possibilities out there with a business plan that’s inimitably suited to your company. It’s similar to an adventurer exploring new terrain and new ideas, scooping out threats (or competition) and becoming a successful business warrior who is also a happy and prosperous survivor.

Best of all, you can write a business plan easily and effortlessly. Think out loud to yourself and others. Or, reflect and contemplate in silence, as some prefer to do.

Our guide will show you how you can write a compelling business plan in a few hours. However, thinking about your business plan is the essential prelude to writing it.

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5 Tips on Budgeting

1. Think of a budget as a useful tool—a written financial plan that helps you set goals and measure progress.

2. Start by coming up with a sales revenue target. Make it your best estimate.

3. Based on past experience, estimate your cost of goods sold (e.g., 70 percent of sales) and subtract it from the sales revenue to come up with your estimated gross margin.

4. Forecast variable expenses (items such as travel and commissions that vary according to the level of sales) and fixed expenses (items like taxes and rent that stay the same, regardless of sales). Subtract these expenses from your gross margin to arrive at your estimated net income (before federal taxes).

5. Break your annual budget into quarters and monitor your progress every three months to detect problems and make corrections.

Brought to you by SCORE "Counselors to America's Small Business."

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5 Tips for Domain Naming

By Christine Banning, SCORE VP Corporate Relations

1. Create an online identity. Get a Web domain now, even if you aren't building your site until later.

2. Pick three domain names that fit your business. Your first choice may be taken, so have a few domain name ideas. If your top three picks are available, consider getting all three. It's not too expensive and then you have flexibility to create a site for a special promotion or use a special landing page for an event.

3. Check out domain name vendors. You can register your domain with your choice of vendor. Here are some well-known, domain name registrars:

• Concentric, www.concentric.com

• Network Solutions, www.networksolutions.com

• Yahoo Domains, www.yahoo.com

• GoDaddy, www.godaddy.com

• Domaindirect.com, www.domaindirect.com

4. Keep your renewal current. Don't forget to renew your domain name. Businesses have been known to let a name expire and then find that their Web site has disappeared from the Internet. Don't let that be you.

5. Once you have a domain, name your URL mycompany.com, place your URL on every marketing and business document that you produce. Let your company be known.

Brought to you by SCORE "Counselors to America's Small Business."

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5 Tips for Making the Most of Your Business Plan

1. Take the long view and do long-term planning. Map out where you want to be five years from now and how you plan to get there.

2. Write the plan yourself. You will learn more about your business by doing so.

3. Think of your plan as a living document. Review it regularly to make sure you are on track or to adjust it to market changes.

4. Share the plan with others who can help you get where you want to go—such as lenders, key employees and advisors.

5. Understand that you might pay a price in the short run to obtain long-term business growth and health.

Brought to you by SCORE "Counselors to America's Small Business."

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5 Tips for Developing Policies for Your Business

1. Think ahead. Establish policies before you need them. Doing so helps avert crises and awkward situations, and helps solve problems before they arise.

2. Determine what policies you need. Some you’ll want early in your business include a mission statement, as well as compensation, performance evaluation and employee policies.

3. Get input from key employees, as well as from members of your advisory board, your board of directors, and/or your professional advisors and consultants.

4. Communicate policies to everyone in your business.

5. Review policies on a regular basis—once a year, for example—and revise them as necessary.

Brought to you by SCORE "Counselors to America's Small Business."

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10 Tips for Successful Business Networking

Effective business networking is the linking together of individuals who, through trust and relationship building, become walking, talking advertisements for one another.

1. Keep in mind that networking is about being genuine and authentic, building trust and relationships, and seeing how you can help others.

2. Ask yourself what your goals are in participating in networking meetings so that you will pick groups that will help you get what you are looking for. Some meetings are based more on learning, making contacts, and/or volunteering rather than on strictly making business connections.

3. Visit as many groups as possible that spark your interest. Notice the tone and attitude of the group. Do the people sound supportive of one another? Does the leadership appear competent? Many groups will allow you to visit two times before joining.

4. Hold volunteer positions in organizations. This is a great way to stay visible and give back to groups that have helped you.

5. Ask open-ended questions in networking conversations. This means questions that ask who, what, where, when, and how as opposed to those that can be answered with a simple yes or no. This form of questioning opens up the discussion and shows listeners that you are interested in them.

6. Become known as a powerful resource for others. When you are known as a strong resource, people remember to turn to you for suggestions, ideas, names of other people, etc. This keeps you visible to them.

7. Have a clear understanding of what you do and why, for whom, and what makes your doing it special or different from others doing the same thing. In order to get referrals, you must first have a clear understanding of what you do that you can easily articulate to others.

8. Be able to articulate what you are looking for and how others may help you. Too often people in conversations ask, "How may I help you?" and no immediate answer comes to mind.

9. Follow through quickly and efficiently on referrals you are given. When people give you referrals, your actions are a reflection on them. Respect and honor that and your referrals will grow.

10. Call those you meet who may benefit from what you do and vice versa. Express that you enjoyed meeting them, and ask if you could get together and share ideas.

Stephanie Speisman is a Success Coach who coaches groups and individuals in business networking skills based on her booklet "99 Tips for Successful Business Networking." Contact info: (301)469-8015, successcoach@erols.com, www.strategiesforchange.com

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