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starting your own business

Building A Business Plan

One of the first steps in a new venture is the development of a business plan. The business plan describes the product or service, market, people and financing needs.

A well-prepared business plan serves several purposes:

  • For the new business, it helps the owner determine the feasibility and desirability of pursuing the steps necessary to start a business.
  • For the company seeking financing, it is an important sales tool for raising capital from outside sources.
  • For an existing company, the business plan forms the basis of a more detailed operational plan and thus becomes an important management tool for monitoring the growth of the firm and charting future directions.

A business plan should cover these five areas:

  1. Business Summary: The summary should be a brief, concise work that provides the reader with a good understanding of the entire business venture. It should cover – executive summary, objectives, mission statement and keys to success.
  2. Company Summary: It commonly includes a general description of the business, including the product or service and may describe the historical development of the business, company profile, location, legal structure, ownership, and business structure.
  3. The Product or Service: This is a detailed description of product or service lines, including the relative importance of each product or service to the company. Include pricing analysis if possible.
  4. Marketing Plan: Identify principal markets, run a market analysis, and complete an overall strategy for the business.
  5. Financials: This starts with providing name and address of key advisors, including auditor, legal counsel, and banker. Then providing financial statements and projections for next two to three years, which include: Income Statement, Balance Sheet, and Cash Flow Statement.

To request a copy of our “Small Business Booklet”, please contact the AAEDC today!

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