3-2-1 ELEMENTS OF A BUSINESS PLAN

Objectives

Your objectives will describe in detail the products or services that you will provide. They should reflect the image you want to project to your clients. They might also reflect the market or niche market in which you plan to specialize, and the type of client base you would like to build. In their finished form, your objectives should read like the copy for a well prepared 30-second commercial: clean, concise and complete.

Competition A thorough analysis of your competition is essential. This will include answers to the following questions:

- Who are your competitors? - Where are they located? - How do they price their services? - Who are their major customers? - What are their unique strengths? - What are their unique weaknesses? - What can they do better than I can? - What can I do better than they can?

Gather the information necessary for this analysis from your own knowledge of the competition, clients, colleagues, third parties or anyone with solid information about your competition. When reviewing information, consider its source. Is the information realistic and believable? Is the source of the information credible? Once you have analyzed the information, develop a profile of the competition that will make it possible to differentiate your business from theirs. The profile will also make it possible to project why clients will prefer your services over those of the competition. A written summary of the analysis will form part of the business plan.

Clients

For purposes of the business plan, prepare a brief summary describing your clients and the needs they have that you will be meeting.

Pricing Your Services

Include a brief summary covering: Per page, per line, or per hour rate Average fees per project Projected total fees Break-even point - level of sales to just cover operating expenses Comparison of your prices to the competition

Operating Requirements

This section of the business plan identifies the licenses, permits and resources that you will require to begin and maintain your operation. Included in these requirements are: Compliance with federal, provincial or state and municipal government regulations; Obtaining the necessary permits and licenses to conduct your specific business; Registration for the collection of sales tax, if applicable; Acquisition of major pieces of equipment and furniture; Skills required to provide services to clients, and the source and cost of acquiring those skills.

Operating Budget

A budget is necessary to establish your expected costs of doing business against projected revenue. Included in these costs are start-up costs and regular fixed costs. Examples of items that would be included in Start-up and Fixed costs are as follows:

- Equipment PC, Writer, Software, Laser Printer, etc. - Phone line installation - Office supplies - Business cards - Letterhead - Licenses - Fixed costs - Salaries (include all necessary withholdings and income taxes) - Telephone service - Supplies - Postage - E-mail fees - Rent - Hardware and software upgrades - Ongoing license fees - Advertising - Yellow Pages - Web Page - Industry Journals -Promotional flyers

Projected revenue is the money you expect to receive broken down by product or service and time period. Once prepared, your business plan should not be consigned to the bottom drawer of your desk. Just as you use a road map to monitor your progress toward a destination, you should use your plan to monitor progress towards your ultimate business goals. If the business is developing as planned, you can be confident that, if you stay on course, you will achieve your overall goals. Conversely, if things are not developing as planned, you can make mid-course corrections or modify your goals. Your business plan can and will serve as an effective road map, provided you consult it regularly.