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Business Planning Demystified

Your company's business plan is a key document for both planning and funding purposes. Get actionable advice on how to write and refine your plan.
Latest Posts

Do You Need a Business Plan (Interview)
November 06, 2009, 12:05 PM
A 12-question interview on the latest in business planning, including why you need a business plan and why that's much easier than you think.

Kelle Olwyler Dispelling Myths of Small Business Planning
October 09, 2009, 10:50 AM
A good radio interview by Jim Blasingame, interviewing Kelle Olwyler, on the myths of business planning.

Two Planning Posts You Should Read
October 05, 2009, 5:25 PM
Recommending two good posts on two important elements of business planning. The first talks about increasing accountability in a business, and the second about how planning can make the difference between success and failure.

Looking for That Master List of Startup Expenses
September 06, 2009, 4:35 PM
Answering a reader's question about where to find a master list of startup expenses for a specific business plan. No, there is no list, it depends on what you want, where you are, what resources you have, and your strategy ...

New Business Pitch Site Opens Up
August 28, 2009, 1:05 PM
There's a new business pitch site at pitch.bplans.com that gives you a place to put your business summary and video pitch for free. No promise of investors looking at it, but tips, comments, and a dedicated URL can help your ...

Why Cash Flow Is Like a River
August 24, 2009, 10:30 AM
A 5-minute video looking at details of cash flow for small business, why you want to plan your cash flow, and why cash flow is like a river.

Business Plan Simplifying Assumptions
August 21, 2009, 12:00 PM
Why simplifying assumptions in a business plan? It has do to with diminishing return on effort, not trying to model reality three years into the future in full detail. It's planning, not accounting, and particularly not accounting detail imagined in ...

5 Dangerous Myths of Business Planning
August 13, 2009, 6:10 PM
I posted 5 Dangerous Myths of Business Planning yesterday on the Industry Word blog on the new business.gov community site.

Rant: Who Says Business Plans are Only for Investors?
August 10, 2009, 7:05 AM
Business planning is for anybody wanting to run a business better, or start a new business; but it is too often thought of as only for people trying to raise investment capital ...

About Entrepreneurs Who Say They Don't Plan
August 06, 2009, 6:00 PM
There are so many dumb ideas floating around this collection of misconceptions that I get frustrated. Not that either Henry Blodget or Kevin Ryan are dumb, but they're playing that straw man game again, defining a business plan as something ...



Latest Comments in Business Planning Demystified posts

As a business writer, the successful entrepreneurs that I have interviewed over the years have told me that when it comes to business start up costs, Murphy's Law applies. Now the original Murphy is supposed to have stated that "anything that can go wrong will go wrong and at the worst possible time." The business start up corollary to that is "any start up will cost more than anticipated and take longer to generate revenue than planned."

The long and the short of it is to carefully work up a budget and include all possible costs associated with the start up and your anticipated time to generate adequate revenue to cover expenses. Then add a 50% premium to both numbers.
Can you live with that? Can you survive?

You may get very lucky and begin generating big bucks on Day One but you probably won't.

One contractor we know maintains a reserve large enough to keep his business running for two and a half years. That's from a long experienced business person with 40 years in the business.

The bottom line is that when you figure out all of your expenses, find areas where you can substantially cut costs. Do you need to sign the expensive office lease right now and hire a secretary? Could you instead work out of your home and contract with a business center for a virtual office that will supply you with secretarial help and real offices as you need them. That also saves investing in expensive furniture and office equipment.
There are numerous ways to cut coss and cut them you should even after the business is thriving.

Ron D

http://www.start-a-business-faq.com

...
By: Ron Derven on 9/9/09 at 11:21 PM
Looking for That Master List of Startup Expenses
It seems there are lists for everything today readily available for the right price. Anyone trying to use these should be wary even if it seems they are getting what they wanted at first.
By: Kim Shuford on 5/31/09 at 11:13 AM
Forget those Free Lists of Investors
Excellent post. I appreciated in particular your argument against multi-directional business plans. Your focus on the value of clarity overriding the value of 'covering all your options' is one I support completely.

The kind of clarity that leads to results has to be the main objective of any planning process.

Clemens
www.clemensrettich.com ...
By: Clemens Rettich on 2/25/09 at 1:54 PM
5 Points on Business Planning and Imminent Change
I agree with Tim's insight and would add just a little more to it. When we create financial projections, almost all of the emphasis is placed on the income statement. We cannot forget to forecast the balance sheet - this is the key to understanding the cash flow of the company in the future months and years.

Most entrepreneurs do not have enough formal education or experience to create an accurate balance sheet projection that ties to the income statement projection. This is where i agree with Tim's advice that a coach would be helpful in the process, especially if they have lots of experience with creating income statement and balance sheet projections.

Ken K
www.cfowise.com ...
By: CFOwise on 12/10/08 at 10:22 AM
7 Points About Business Planning and Spreadsheets
Enough cash is often exactly what we needed in creating your own business, and also to achieve our goals and dreams. Of course we need to fix some problems to ease some minor crisis. When something crazy happens, we can depend on quick loans out get out of jam. I can?t tell you how many times quick loans have come to my rescue when something crazy has happened. I thought I was the only one, but apparently my secret is out. Quick loans are a convenient way to get life back to normal after something unexpected happens. I mean, I?ve never been kite boarding nor do I plan on it. So getting hit in the head by a whale tail might be the last thing that ever happens to me, unless whales hang out in knee-high lake water or Shamu decides to jump into the stands next time I?m at Sea World. However, Mother Nature recently dealt me a nasty blow. A few weeks ago there was a windstorm. The power went out, which was no big deal because I just went to bed. I woke up to a loud crash. To my dismay, the beautiful maple tree in our backyard had splintered under the force of the wind and plummeted through the kitchen roof. I am thankful that no one in my family was hurt, but an enormous hole in my roof was the last thing I was expecting. Our insurance covered most of the cost, but I needed quick money to get my family a hotel for a couple of nights and to pay the deductible. Quick loans were a quick solution to an unwelcome surprise.

Click to read more on http://personalmoneystore.com/moneyblog/what-are-short-term-installment-loans/ ...
By: Quick Money Loans on 11/22/08 at 3:52 AM
5 Fundamentals for Business planning

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