Starting a new business is both exciting and risky. Statistically as
many as 80% of new businesses fail in the first
five years. The Chamber of Commerce wants your
business to succeed, and we have many excellent resources to help you.
Begin with good planning:
SCORE
Counselors to America's small business
Free business counseling and advice by local volunteers.
Contact Marshfield Area Chamber of Commerce & Industry (715) 384-3454
for details.
Web page: www.centralwisconsinscore.org or www.score.org
SBDC (Small Business Development Center)
Statewide network providing business education services.
UW Stevens Point, phone 715-346-3838
Web page:
www.uwsp.edu/conted/sbdc
SBA (Small Business Administration)
Provides financial, technical & management assistance to help
Americans start, run and grow their businesses.
Web page:www.sba.gov
A Business Plan is your Blueprint to a Successful Business!
Preparing a business plan is important for two reasons:
Preparing a plan forces you to think through every aspect of your business. If you need capital,
your business plan will be one of the first things the lender or investor wants to see.
A business plan serves as an assessment tool for the owner. You can
reaffirm the viability of your ideas as you work your way through the
points of the plan. As your business grows, a plan will help keep track of
the details and make sure the business is progressing as you intended.
Many excellent resources are available online or at the library
to help you write your business plan. Following
the outline below can give you a good start. There are also great
resources available at the links above and on the financial
and technical resources pages of our Web site.
INTRODUCTION:
Give a detailed description of the business
and its goals.
Discuss the ownership of the business and the legal structure.
List the skills and experience you bring to the business.
Discuss the advantages you and your business have over your competitors.
MARKETING:
Discuss the products/services offered.
Identify the customer demand for your product/service.
Identify your market, its size and locations.
Explain how your product/service will be advertised and marketed.
Explain the pricing strategy.
FINANCIAL MANAGEMENT:
Explain your source and the amount of initial equity capital.
Develop a monthly operating budget for the first year.
Develop an expected return on investment and monthly cash flow for the first year.
Provide projected income statements and balance sheets for a two-year period.
Discuss your break-even point.
Explain your personal balance sheet and method of compensation.
Discuss who will maintain your accounting records and how they will be kept.
Provide “what if” statements that address alternative approaches to any problem that may develop.
OPERATIONS:
Explain how the business will be managed on a day-to-day basis.
Discuss hiring, personnel procedures.
Discuss insurance, lease or rent agreements and issues pertinent to your business.
Account for the equipment necessary to produce your products or services.
Account for production and delivery of products and services.
CONCLUDING STATEMENT:
Summarize your business goals and objectives and express your
commitment to the success of your business.
Once you have completed your business plan,
review it with a friend or business associate
or a SCORE (Counselors to America's small
business) counselor or SBDC (Small Business
Development Center) representative.
When you feel comfortable with the content and structure, make an
appointment to review and discuss it with your lender. Keep in mind, your
business plan should change as your business grows.
