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Business Plan

When not to use a business plan
Although most experts recommend that you start with a business plan, you'd be surprised at how few of them had business plans right from the start.

In fact, many great entrepreneurs still operate without them.

If your idea is so great that you can't sleep, then forget the business plan for now. If you are confident that success is imminent, then don't plan it to death. Go for it.

You can also skip the business plan if you, like me, have no choice. For me it was swim or sink. Not much of a choice. Swim! Plan when you reach the shore.

When to use a business plan
If you are not 100% sure that your idea will work, if you have the time or if you need to attract outside financing, then there's no excuse. Don't think of it as extra work. A good business plan is an asset.

It forces you to think in different directions. It forces you to do research, to compare, to evaluate and finally to focus.

A business plan, no matter how good, is not a guarantee for success, but by identifying the strengths and weaknesses of your business idea, you greatly improve your chances.

Sample business plan
Here is the format that I adopted for Pandecta Magazine's business plan. You are welcome to use it as an outline for your own.

1. Executive Summary

This should be about one page long. Describe the business in general terms.

2. Overview

Your mission. What do you want to achieve, where are you going and why do you think it will work.

3. Introduction

Purpose - explain in detail where you want to go with this
History - a summary of important development highlights
Critical Success Factors - what's going to make it work?
4. Business Environment

Market - this is where your market research results go.
Problems and possible solutions
Competition
Expansion Potential
5. Description of Product or Service

Unique Selling Points (Generally referred to as your USP)
Benefits to the customer
Current...