Business Plan 101

Creating your company will require a business plan. This plan will list every possible detail you can think about that is relevant for your company to become a success.

It will be read not only by yourself or your wife but by the investors that you will ask to join the company or the banks you will ask money from. It will also be useful in the future when you are so overwhelmed with work and help to put you back on the right track.

A business plan explains why your company is in business. It will go from an executive summary that will in two sentences describe your business to how many of your products you plan to sell in 5 years.

It is a living document that you will update on a regular base according to your experience and the development of your company. This should be done once or twice a year. Even more if you are just starting.

To start a business plan, the best way is to create a business model for your company. This business model will help you to get the overview before starting to dig into the sordid little details that only your accountant will be interested in (;-).

Everything box in the business model should then be described in more details in the business plan.

So follow the links here under and start your business model. Good luck.

To make your life easier, we have made this template of the business model. Download the template from here.

To help you further in the development of your business plan, you need to make a fair and honest analysis of your Strength and Weaknesses as well as the Opportunities and Threats that you will be facing. For this you will use the so called SWOT matrix that does exactly this. It is a listing of your Strength, Weakness, Threath and Opportunities related to your product business plan.

A SWOT Matrix  (strengths, weaknesses, opportunities, threats) is also used to define the strategy of your company when used in conjunction with the business model. The SWOT matrix can also be used for personal development, for example to compare yourself to other for a certain situation.

For this purpose we have created this SWOT matrix Template.

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