Profit Sense Innovations Makes Promises for doing business under a systemic way which has been verified through the years. The word profit sense innovations is like a law which has been performed this company as Success 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 easiest way to start with a loose leaf
notebook, plenty of paper, pencils, pencil sharpener, and several
erasers. Once you get your mind “in gear” and begin thinking about your
business plan, “10,000 thoughts and ideas per minute” will begin racing
through your mind…So, it’s a good idea when you aren’t actually working
on your business plan, to carry a pocket notebook and jot down those
business ideas as they come to you–ideas for sales promotion, recruiting
distributors, and any other thoughts on how to operate and/or build
your business.
Later, when you’re actually working on
your business plan, you can take out this “idea notebook” evaluate your
ideas, rework them, refine them, and integrate them into the overall
“big picture” of your business plan.
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:
Title Page Statement of Purpose Table of
Contents Business Description Market Analysis Competition Business
Location Management Current Financial Records Explanation of Plans For
Growth Projected Profit & Loss/Operating Figures Explanation of
Financing for Growth Documentation Summary of Business & Outlook for
The Future Listing of Business & personal References
This is a logical organization of the
information every business plan should cover. I’ll explain each of these
chapters titles in greater detail, but first, let me elaborate upon the
reasons for proper organization of your business plan.
Having a set of “questions to answer”
about your business forces you to take an objective and critical look at
your ideas. Putting it all down on paper allows you to change, erase
and refine everything to function in the manner of a smoothly oiled
machine. You’ll be able to spot weakness and strengthen them before they
develop into major problems. Overall, you’ll be developing an operating
manual for your business–a valuable tool which will keep your business
on track, and guide you in the profitable management of your business.
Because it’s your idea, and your business,
it’s very important that YOU do the planning. This is YOUR business
plan, so YOU develop it, and put it all down on paper just the way YOU
want it to read. Seek out the advice of other people; talk with, listen
to, and observe, other people running similar businesses; enlist the
advice of your accountant and attorney–but at the bottom line, don’t
ever forget it has to be YOUR BUSINESS PLAN!
Remember too, that statistics show the
greatest causes of business failure to be poor management and lack of
planning–without a plan by which to operate, no one can manage; and
without a direction in which to aim its efforts, no business can attain
any real success.
On the very first page, which is the title
page, put down the name of your business-ABC ACTION–with your business
address underneath. Now, skip a couple of lines, and write it all in
capital letters: PRINCIPAL OWNER–followed by your name if you’re the
principal owner. On your finished report, you would want to center this
information on the page, with the words “principal owner” off-set to the
left about five spaces.
Examples: ABC ACTION 1234 SW 5th Ave. Anywhere, USA 00000
PRINCIPAL OWNER: Your Name
That’s all you’ll have on this page except the page number -1-
Following your title page is the page for
your statement purpose. This should be a simple statement of your
primary business function, such as: We are a service business engaged in
the business of selling business success manuals and other information
by mail.
The title of the page should be in all
capital letters across the top of the page, centered on your final
draft–skip a few lines and write the statement of purpose. This should
be direct, clear and short–never more than (2) sentences in length.
Then you should skip a few lines, and from
the left hand margin of the paper, write out a sub-heading in all
capital letters, such as: EXPLANATION OF PURPOSE.
From, and within this sub-heading you can
briefly explain your statement of purpose, such as: Our surveys have
found most entrepreneurs to be “sadly” lacking in basic information that
will enable them to achieve success. This market is estimated at more
than a 100 million persons, with at least half of these people actively
“searching” for sources that provide the kind of information they want,
and need.
With our business, advertising and
publishing experience, it is our goal to capture at least half of this
market of information seekers, with our publication. MONEY MAKING MAGIC!
Our market research indicates we can achieve this goal and realize a
profit of $1,000,000 per year within the next 5 years…
The above example is generally the way you
should write your “explanation of purpose,” and in subtle definition,
why you need an explanation. Point to remember: Keep it short. Very few
business purpose explanations justify more than a half page long.
Next comes your table of contents page.
Don’t really worry about this until you’ve got the entire plan completed
and ready for final typing. It’s a good idea though, to list the
subject (chapter titles) as I have, and then check off each one as you
complete that part of your plan.
By having a list of the points you want to
cover, you’ll also be able to skip around and work on each phase of
your business plan as an idea or the interest in organizing that
particular phase, stimulates you. In other words, you won’t have to make
your thinking or your planning conform to the chronological order of
the “chapters” of your business plan–another reason for the loose leaf
notebook.
In describing your business, it’s best to
begin where your statement purpose leaves off. Describe your product,
the production process, who has responsibility for what, and most
importantly, what makes your product or service unique–what gives it an
edge in your market. You can briefly summarize your business beginnings,
present position and potential for future success, as well.
Next, describe the buyers you’re trying to
reach–why they need and want or will buy your product–and the results
of any tests or surveys you may have conducted. Once you’ve defined your
market, go on to explain how you intend to reach that market–how you’ll
these prospects to your product or service and induce them to buy. You
might want to break this chapter down into sections such as..publicity
and promotions, advertising plans, direct sales force, and
dealer/distributor programs. Each section would then be an outline of
your plans and policies.
Moving into the next chapter on
competition, identify who your competitors are–their weakness and strong
points–explain how you intend to capitalize on those weaknesses and
match or better the strong points. Talk to as many of your “indirect”
competitors as possible–those operating in different cities and states.
One of the easiest ways of gathering a lot
of useful information about your competitors is by developing a series
of survey questions and sending these questionnaires out to each of
them. Later on, you might want to compile the answers to these
questionnaires into some form of directory or report on this type of
business.
It’s also advisable to contact the trade
associations and publications serving your proposed type of business.
For information on trade associations and specific trade publications,
visit your public library, and after explaining what you want ask for
the librarian’s help.
The chapter on management should be an
elaboration on the people operating the business. Those people that
actually run the business, their job, titles, duties, responsibilities
and background resume’s. It’s important that you “paint” a strong
picture of your top management people because the people coming to work
for you or investing in your business, will be “investing in these
people” as much as your product ideas. Individual tenacity, mature
judgement under fire, and innovative problem-solving have “won over”
more people than all the AAA Credit Ratings and astronomical sales
figures put together.
People becoming involved with any new
venture want to know that the person in charge–the guy running the
business knows what he’s doing, will not lose his cool when problems
arise, and has what it takes to make money for all of them> After
showing the “muscle” of this person, go on to outline the other key
positions within your business; who the persons are you’ve selected to
handle those jobs and the sources as well as availability of any help
you might need.
If you’ve been in business of any kind
scale, the next chapter is a picture of your financial status–a review
of your operating costs and income from the business to date. Generally,
this is a listing of your profit & loss statements for the six
months, plus copies of your business income tax records for each of the
previous three years the business has been an entity.
The chapter on the explanation of your
plans for the future growth of your business is just that–an explanation
of how you plan to keep your business growing–a detailed guide of what
you’re going to do, and how you’re going to increase your profits. These
plans should show your goals for the coming year, two years, and three
years. By breaking your objectives down into annual milestones, your
plan will be accepted as more realistic and be more understandable as a
part of your ultimate success.
Following this explanation, you’ll need to
itemize the projected cost and income figures of your three year plan.
I’ll take a lot of research, an undoubtedly a good deal of erasing, but
it’s very important that you list these figures based upon thorough
investigation. You may have to adjust some of your plans downward, but
once you’ve got these two chapters on paper, your whole business plan
will fall into line and begin to make sense. You’ll have a precise “map”
of where you’re headed, how much it’s going to cost, when you can
expect to start making money, and how much.
Now that you know where you’re going, how
much it’s going to cost and how long it’s going to be before you begin
to recoup your investment, you’re ready to talk about how and where
you’re going to get the money to finance your journey. Unless you’re
independently wealthy, you’ll want to use this chapter to list the
possibilities and alternatives. Make a list of friends you can approach,
and perhaps induce to put up some money as silent partners. Make a list
of those people you might be able to sell as stockholders in your
company–in many cases you can sell up to $300,000 worth of stock on a
“private issue” basis without filing papers with the Securities and
Exchange Commission. Check with a corporate or tax attorney in your area
for more details. Make a list of relatives and friends that might help
you with an outright loan to furnish money for the development of your
business.
Then search out and make a list of venture
capital organizations. Visit the Small Business Administration office
in your area–pick up the loan application papers they have–read them,
study them, and even fill them out on a preliminary basis–and finally,
check the costs, determine which business publications would be best to
advertise in, if you were to advertise for a partner or investor, and
write an ad you’d want to use if you did decide to advertise for
monetary help.
With listing of all the options available
to your needs, all that’s left is the arranging of these options in the
order you would want to use them when the time come to ask for money.
When you’re researching these money sources, you’ll save time by noting
the “contact” deal with when you want money, and whenever possible, by
developing a working relationship with these people.
If your documentation section, you should
have a credit report on yourself. Use the Yellow Pages or check at the
credit department in your bank for the nearest credit reporting office.
When you get your credit report, look it over and take whatever steps
are necessary to eliminate any negative comments. Once these have been
taken care of, ask for a revised copy of your report and include a copy
of that in your business plan.
If you own any patents or copyrights,
include copies of these. Any licenses to use someone else’s patent or
copyright should also be included. If you own the distribution,
wholesale or exclusive sales rights to a product, include copies of this
documentation. You should also include copies of any leases, special
agreements or other legal papers that might be pertinent to your
business.
In conclusion, write out a brief, overall
summary of your business- when the business was started, the purpose of
the business, what makes your business different, how you’re going to
gain a profitable share of the market, and your expected success during
the coming 5 years..
The last page of your business plan is a
“courtesy page” listing the names, addresses and phone numbers of
personal and business references–persons who have known you closely for
the past five years or longer–and companies or firms you’ve had business
or credit dealings with during the past five years.
And, that’s it–your complete business
plan. Before you send it out for formal typing, read it over once a day
for a week or ten days. Take care of any changes or corrections, and
then have it reviewed by an attorney and then, an accountant. It would
also be a good idea to have it reviewed by a business consultant serving
the business community to which your business will be related. After
these reviews, and any last-minute changes you want to make, I’ll be
ready for formal typing.
Type and print the entire plan on ordinary
white bond paper. Make sure you proof-read it against the original.
Check for any corrections and typographical errors–then one more
time–read it through for clarity and the perfection you want of it.
Now you’re ready to have it printed and
published for whatever use you have planned for it–distribution amongst
your partners or stockholders as the business plan for putting together a
winning financial proposal, or as a business operating manual.
Take it to a quality printer in your area, and have three copies printed. Don’t settle for photo-copying..Have it printed!
Photo-copying leaves a slight film on the
paper, and will detract from the overall professionalism of your
business plan, when presented to someone you’re trying to impress. So,
after going to all this work to put together properly, go all the way
and have it duplicated properly.
Next, stop by a stationery store, variety
store or even a dime store, and pick up an ordinary, inexpensive bind-in
theme cover for each copy of your business plan. Have the holes punched
in the pages of your business report to fit these binders and then slip
each copy into a binder of its own.
Now, you can relax, take a break and feel
good about yourself..You have a complete and detailed business plan with
which to operate a successful business of your own. A plan you can use
as a basis for any financing proposal you may want to submit..And a
precise road-map for the attainment of real success.
Profit Sense Innovations
Profit Sense Innovations