{"id":3003,"date":"2023-02-19T16:11:17","date_gmt":"2023-02-19T16:11:17","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/reading-create-your-business-plan\/"},"modified":"2025-05-22T15:08:15","modified_gmt":"2025-05-22T15:08:15","slug":"reading-create-your-business-plan","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/reading-create-your-business-plan\/","title":{"raw":"Learn It 8.4.3: How to Start a Business","rendered":"Learn It 8.4.3: How to Start a Business"},"content":{"raw":"

Create Your Business Plan<\/h2>\r\n\r\n[caption id=\"attachment_8656\" align=\"alignright\" width=\"351\"]\"a Figure 1. A business plan is a document that contains a range of details about how your business such as organization, operations, and financing.[\/caption]\r\n\r\n

The SBA recommends prospective entrepreneurs address the following nine elements in their business plan<\/strong>:<\/p>\r\n

    \r\n\t
  1. Executive Summary<\/li>\r\n\t
  2. Company Description<\/li>\r\n\t
  3. Market Analysis<\/li>\r\n\t
  4. Organization & Management<\/li>\r\n\t
  5. Service or Product Line<\/li>\r\n\t
  6. Marketing & Sales<\/li>\r\n\t
  7. Funding Request<\/li>\r\n\t
  8. Financial Projections<\/li>\r\n\t
  9. Appendix<\/li>\r\n<\/ol>\r\n

    The SBA provides two example business plans for reference: consulting firm example business plan<\/a> and toy manufacturer example business plan<\/a>.<\/p>\r\n

    Note that the length and depth of business plans vary depending on the audience and objective. For example, a business owner(s) seeking a traditional bank loan will likely need a more detailed plan.<\/p>\r\n

    An alternative is the lean business plan, which Palo Alto Software and BPlan founder and CEO Tim Berry claims can be completed in an hour. The process and timeframe are probably more applicable to a seasoned entrepreneur, but it may be worth reading Berry\u2019s Fundamentals of Lean Business Planning<\/a> blog post to see if it\u2019s a fit for you.<\/p>\r\n

    \r\n

    There are a number of one page business plan templates freely available online; to view a range of options, conduct an image search on \u201cone page business plan template.\u201d A final approach for consideration is venture capitalist Guy Kawasaki\u2019s 10\/20\/30 formula: 10 slides, 20 minutes, 30 point font. In those 10 slides, Kawasaki recommends eliminating pitch-speak and focusing on the topics that matter to an early stage investor:<\/p>\r\n

      \r\n\t
    1. Problem<\/li>\r\n\t
    2. Your solution<\/li>\r\n\t
    3. Business model<\/li>\r\n\t
    4. Underlying magic\/technology<\/li>\r\n\t
    5. Marketing and sales<\/li>\r\n\t
    6. Competition<\/li>\r\n\t
    7. Team<\/li>\r\n\t
    8. Projections and milestones<\/li>\r\n\t
    9. Status and timeline<\/li>\r\n\t
    10. Summary and call to action<\/li>\r\n<\/ol>\r\n<\/section>\r\n
      [ohm2_question height=\"200\"]4477[\/ohm2_question]<\/section>","rendered":"

      Create Your Business Plan<\/h2>\n
      \"a
      Figure 1. A business plan is a document that contains a range of details about how your business such as organization, operations, and financing.<\/figcaption><\/figure>\n

      The SBA recommends prospective entrepreneurs address the following nine elements in their business plan<\/strong>:<\/p>\n

        \n
      1. Executive Summary<\/li>\n
      2. Company Description<\/li>\n
      3. Market Analysis<\/li>\n
      4. Organization & Management<\/li>\n
      5. Service or Product Line<\/li>\n
      6. Marketing & Sales<\/li>\n
      7. Funding Request<\/li>\n
      8. Financial Projections<\/li>\n
      9. Appendix<\/li>\n<\/ol>\n

        The SBA provides two example business plans for reference: consulting firm example business plan<\/a> and toy manufacturer example business plan<\/a>.<\/p>\n

        Note that the length and depth of business plans vary depending on the audience and objective. For example, a business owner(s) seeking a traditional bank loan will likely need a more detailed plan.<\/p>\n

        An alternative is the lean business plan, which Palo Alto Software and BPlan founder and CEO Tim Berry claims can be completed in an hour. The process and timeframe are probably more applicable to a seasoned entrepreneur, but it may be worth reading Berry\u2019s Fundamentals of Lean Business Planning<\/a> blog post to see if it\u2019s a fit for you.<\/p>\n

        \n

        There are a number of one page business plan templates freely available online; to view a range of options, conduct an image search on \u201cone page business plan template.\u201d A final approach for consideration is venture capitalist Guy Kawasaki\u2019s 10\/20\/30 formula: 10 slides, 20 minutes, 30 point font. In those 10 slides, Kawasaki recommends eliminating pitch-speak and focusing on the topics that matter to an early stage investor:<\/p>\n

          \n
        1. Problem<\/li>\n
        2. Your solution<\/li>\n
        3. Business model<\/li>\n
        4. Underlying magic\/technology<\/li>\n
        5. Marketing and sales<\/li>\n
        6. Competition<\/li>\n
        7. Team<\/li>\n
        8. Projections and milestones<\/li>\n
        9. Status and timeline<\/li>\n
        10. Summary and call to action<\/li>\n<\/ol>\n<\/section>\n