How to Write a Business Plan

Like all entrepreneurs, you will need to do a great deal of research before opening your business.
Writing a business plan, a document that clearly describes your vision of all the details of business
operation, is recommended. The plan allows you to apply your research to your decision-making.
Although a business plan is time consuming, it is important to business success. Completing the
plan forces you to examine all decisions of management, marketing, personnel and finance in an
objective and organized way. Another important benefit of the planning process is that you will
project the amount of financing needed for start-up and the early stages of your business. The plan
will, therefore, become a useful tool in securing capital before start-up. Then the plan becomes your
owner’s manual guiding your daily operation and activities.
Among other things, the business plan describes the products and services you will sell, the
customers to whom you will sell them, the production, management and marketing activities
needed to produce your offerings, and the projected profit or loss that will result from your efforts.
A complete outline of the content of the plan is supplied below. When you adequately cover all of
the outline elements, your business plan will provide answers to these questions:

Who are you? A personal resume outlining the education and experience that will allow you to
start and manage your business successfully.

What are you going to do? A description of your business concept, the products and services
you will be providing, the market which you will serve, where you will be located, how much
money you will invest and how much additional money you will need (if any).

Where are you going? The short- and long-term goals you have set for your business.

How are you going to get there? The strategies that will allow you to meet your financial responsibilities,
compete with others in the marketplace, learn new management skills, communicate
with your customers, etc.
Business planning is an ongoing activity. Existing businesses, as well as start-up firms, benefit from
writing and updating their goals, plans and activities. Although plans differ in some content
elements depending on whether the firm is a retail, manufacturing, distribution or service enterprise,
the following outline should provide a solid framework for preparing your business plan.
Brief explanations are provided in each section, but if you have questions about the application of
the outline to your particular business, contact the Small Business Development Center (SBDC) or
Service Corps of Retired Executives (SCORE) Chapter in your area. Refer to Section IV, Pennsylvania
Resources Section for contact information.