Why Do You Need a Business Plan?

From my experience the main reason you need a business plan is because many people decide to either:

1. not go into business OR


2. go into a different business OR


3. wait to go into business

after they write their business plan.  Wouldn't you rather know this before you opened your doors than after?





So, what is a business plan anyway?  A business plan is a written document that explain in detail all aspects of your business.  A business plan usually includes:

• Executive Summary - a summary of the entire plan


• Mission, Vision A& Description -  why the business will exist, the expected or intended future of the business, the business goals & objectives, philosophy, target marget, etc.


• Products & Services - what your business plans to offer


• Marketing Plan - how to best market the business, barriers to entry and how to overcome them, features & benefits of your products & services, how much of each product & service you believe you can sell in a year


• Operational Plan - explains the day to day operations of a business


• Management and Organization - who will be in charge and how the business will survive it's managers/owners


• Personal Financial Statement - the financial resources of the owners - a balance sheet or list of all assets and liabilities of each individual owner of the business.


• Start-up Costs and Capitalization - List of expenses you will incur before your business begins (like consulting costs, attorney fees, utility deposits, furniture & fixtures, rent, etc.), the amount of cash the owners or investors intend on putting into the business, loans and lines of credit the business intends on obtaining, etc.


• Forecasted Profit and Loss - A detailed 12-month forecast of your anticipated income and expenses.  It's also helpful to have a forecasted cash flow statement and breakeven analysis.

Yes, it's a lot of work to create a good business plan, but you'll be glad you did it.  In addition, there's a lot of resources out there to help you, such as:

• SCORE's free online business workshop:  http://www.score.org/Develop_Business_Plan.html and


• SBA's Small Business Planner: http://www.sba.gov/smallbusinessplanner/index.html

Tax law can change daily, please talk to your tax adviser before making decisions that will affect your taxes.

The Day After

‘Twas the day after Tax season and all through the land, 

Most of the people had filed, and paid more than they could stand. 

Tons of deductions and credits galore, 

Had everyone hopeful as they dropped to the floor.

Even God was amazed at the praying yesterday, 

Everyone pleading that THEY shouldn’t pay!

 

With a nod of my head I pointed at the wall

For there hangs a plaque, written for all….

“You have to pay taxes, so we can take care

 of those who don't work, don't save or claim that life is unfair.

We're a self-governing nation so we have only ourselves to blame.

Complain to your Congressman or we'll have more of the same.

When that doesn't work then there's only one recourse.

Vote them out of office so we can stop this remorse."

When night turned to day, my eyes did behold 

Tax season was over, or so I was told.

Looking left, looking right and seeing the sight…

Confidential papers to be shred; mail to be read.

Files to store; and cleaning glore.

Tax law can change daily, please talk to your tax adviser before making decisions that will affect your taxes.