Business Plan Guidelines

Preparing a Business Plan that Guarantees Profits in business comes as a result of planning. You have to have a detailed, written plan that shows what the ultimate goal is, the reason for the goal, and each milestone that must be passed in order to reach your goal. A business plan is written definition of, and operational plan for achieving your goal. You need a complete but success tool in order to define your basic product, income objectives and specific operating procedures. YOU HAVE TO HAVE A BUSINESS PLAN to attract investors obtain financing and hold onto the confidence of your creditors, particularly in times of cash flow shortages- in this instance, the amount of money you have on hand compared with the expenses that must be met. Aside from an overall directional policy for the production, sales effort and profit goals of your product--your basic "travel guide" to business success -- the most important purpose your business plan will serve, will be the basis or foundation of any financial proposals you submit. Many entrepreneurs are under the mistaken impression that a business plan is the same as a financial proposal, or that a financial proposal constitutes a business plan. This is just a misunderstanding of the uses of these two separate and different business success aids. The business plan is a long range "map" to guide your business to the goal you've set for it. The plan details the what, why, where, how and when, of your business -- the success planning of your company. Your financial proposal is a request for money based upon your business plan -- your business history and objectives. Understand the differences. They are closely related, but they are not interchangeable. Writing and putting together a "winning" business plan takes study, research and time, so don't try to do it all in just one or two days. The best business plans for even the smallest businesses run 25 to 30 pages or more, so you'll need to "title" each page and arrange the different aspects of your business plan into "chapters." The format should pretty much run as follows:

1	Executive Summary		5.2	Marketing Strategy
1.1	Objectives		5.2.1	Positioning Statement
1.2	Mission		5.2.2	Pricing Strategy
1.3	Keys to Success		5.2.3	Promotion Strategy
2	Company Summary		5.2.4	Distribution Strategy
2.1	Company Ownership		5.2.5	Marketing Programs
2.2	Start-up Summary		5.3	Sales Strategy
2.3	Company Locations and Facilities		5.3.1	Sales Forecast
3	Services		5.3.2	Sales Programs
3.1	Competitive Comparison		5.4	Strategic Alliances
3.2	Sales Literature		5.5	Milestones
3.3	Fulfillment		6	Management Summary
3.4	Technology		6.1	Organizational Structure
3.5	Future Services		6.2	Management Team
4	Market Analysis Summary		6.3	Management Team Gaps
4.1	Market Segmentation		6.4	Personnel Plan
4.2	Target Market Segment Strategy		7	Financial Plan
4.2.1	Market Needs		7.1	Important Assumptions
4.2.2	Market Trends		7.2	Key Financial Indicators
4.2.3	Market Growth		7.3	Break-even Analysis
5	Strategy and Implementation Summary		7.4	Projected Profit and Loss
5.1	Competitive Edge		7.5	Projected Cash Flow

This Guideline has been prepared from Erika & Heinz Hollerith, Loan Underwriters, Business Consultants and Loan Officers, Owners of the privately held company - RSH Commercial Mortgage Professionals, as a supportive instrument for its clientele. Some of the above points may vary depending on Industry and project