HOW TO PREPARE A BUSINESS PLAN THAT GUARANTEES BIG PROFITS...

    Success in business comes as a result of planning.  You have to have
    a detailed, written plan that shows you what the ultimate goal is,
    the reason for the goal, and each milestone that must be passed in
    order to reach your goal.

    A business plan is a written definition of, and an operational plan
    for achieving your goal. You need a complete business tool in order
    to define your basic product, income objectives and specific
    operating procedures.  YOU HAVE TO HAVE A BUSINESS PLAN to attract
    investors, obtain financing and hold onto the confidence of your
    creditors, particularly in times of cash flow shortages - in this
    instance, the amount of money you have on hand compared with the
    expenses that must be met...

    Aside from an overall directional policy for the production, sales
    efforts and profit goals of your product - your basic "travel guide"
    to business success - the most important purpose your business plan
    will serve, will be the basis or foundation of any financial
    proposals you submit.  Many entrepreneurs are under the mistaken
    impression that a business plan is the same as a financial proposal,
    or that a financial proposal constitutes a business plan.  This is
    just a misunderstanding of the uses of these two separate and
    different business success aids.

    The business plan is a long range "map" to guide your business to
    the goal you've set for it.  This plan details the what, why, where,
    how and when, of your business - the success planning of your
    company.

    Your financial proposal is a request for money based upon your
    business plan - your business history and objectives.

    Understand the differences.  They are closely related, but they are
    not interchangeable.

    Writing and putting together a "winning" business plan takes study,
    research and time, so don't try to do it all in just one or two
    days.

    The easiest way is to start with a loose leaf notebook, plenty of
    paper, pencils, pencil sharpener, and several erasers.  Once you get
    you mind "in gear" and begin thinking about your business plan,
    "10,000 thoughts and ideas per minute" will begin racing through
    your mind...  So, it's a good idea when you aren't actually working
    on your business plan, to carry a pocket notebook and jot down those
    business ideas as they come to you - ideas for sales promotion,
    recruiting distributors, and any other thoughts on how to operate
    and/or build your business.

    Later, when you're actually working on your business plan, you can
    take out this "idea notebook" - evaluate your ideas, rework them,
    refine them, and integrate them into the overall "big picture" of
    your business plan.

    The best business plans for even the smallest businesses run 25 to
    30 pages or more, so you'll need to "title" each page and arrange
    the different aspects of your business plan into "chapters."  The
    format should pretty much run as follows:

          Title Page
          Statement of Purpose
          Table of Contents
          Business Description
          Market Analysis
          Competition
          Business Location
          Management
          Current Financial Records
          Explanation of Plans For Growth
          Projected Profit & Loss/Operating Figures
          Explanation of Financing for Growth Documentation
          Summary of Business & Outlook for The Future
          Listing of Business & Personal References

    This is a logical organization of the information every business
    plan should cover.  I'll explain each of these chapter titles in
    greater detail, but first, let me elaborate upon the reasons for
    proper organization of your business plan.

    Having a set of "questions to answer" about your business forces you
    to take an objective and critical look at your ideas. Putting it all
    down on paper allows you to change, erase and refine everything to
    function in the manner of a smoothly oiled machine.  You'll be able
    to spot weaknesses and strengthen them before they develop into
    major problems.  Overall, you'll be developing an operating manual
    for your business - a valuable tool which will keep your business on
    track, and guide you in the profitable management of your business.

    Because it's your idea, and your business, it's very important that
    YOU do the planning.  This is YOUR business plan, so YOU develop it,
    and put it all down on paper just the way YOU want it to read.  Seek
    out the advice of other people; talk with, listen to, and observe,
    other people running similar businesses; enlist the advice of your
    accountant and attorney - but at the bottom line, don't ever forget
    that it has to be YOUR BUSINESS PLAN!

    Remember too, that statistics show the greatest causes of business
    failure to be poor management and lack of planning - without a plan
    by which to operate, no one can manage; and without a direction in
    which to aim its efforts, no business can attain any real success.
    WHEN YOU FAIL TO PLAN, YOU PLAN TO FAIL!

    On the very first page, which is the title page, put down the name
    of your business - ABC ACTION - with your business address
    underneath. Now, slip a couple of lines, and write in all capital
    letters:  PRINCIPAL OWNER - followed by your name if you're the
    principal owner.  On your finished report, you would want to center
    this information on the page, with the words "principal owner"
    offset to the left about five spaces.

                       Example: ABC  ACTION
               1234 SW 5th Ave. Anywhere, USA 00000
                    PRINCIPAL OWNER:  Your Name

    That's all you'll have on that page, except the page number -1-...

    Following your title page is the page for your statement of purpose.
    This should be a simple statement of your primary business function,
    such as:  We are a service business engaged in the business of
    selling business success manuals and other information by mail.

    The title of the page should be in all capital letters across the
    top of the page, centered on your final draft - skip a few lines and
    write the statement of purpose.  This should be direct, clear and
    short - never more than two (2) sentences in length.

    Then you should skip a few lines, and from the left hand margin of
    the paper, write out a subheading in all capital letters, such as:
    EXPLANATION OF PURPOSE.

    From, and within this subheading, you can briefly explain your
    statement of purpose, such as:  Our surveys have found most
    entrepreneurs to be "sadly" lacking in basic information that will
    enable them to achieve success.  This market is estimated at more
    than 100 million persons, with at least half of these people
    actively "searching" for sources that provide the kind of
    information they want, and need.

    With our business, advertising and publishing experience, it is our
    goal to capture at least half of this market of information seekers,
    with our publication, MONEY MAKING MAGIC!  Our market research
    indicates we can achieve this goal, and realize a profit of
    $1,000,000 per year within the next 5 years...

    The above example is generally the way you should write your
    "explanation of purpose," and in subtle definition, why you need
    such an explanation.  Point to remember:  Keep it short.  Very few
    business purpose explanations are justifiably more than a half page
    long.

    Next comes your table of contents page.  Don't really worry about
    this one until you've got the entire plan completed and ready for
    final typing.  It's a good idea though, to list the subjects
    (chapter titles) as I have, and then check off each one as you
    complete that part of your plan.  By having a list of the points you
    want to cover, you'll also be able to skip around and work on each
    phase of your business plan as the idea or the interest in
    organizing that particular phase, stimulates you.  In other words,
    you won't have to make your thinking or your planning conform to the
    chronological order of the "chapters" of your business plan -
    another reason for the loose leaf notebook...

    In describing your business, it's best to begin where your statement
    of purpose leaves off.  Describe your product, the production
    process, who has responsibility for what, and most importantly, what
    makes you product or service unique - what gives it an edge in your
    market.  You can briefly summarize your business beginnings, present
    position and potential for future success, as well.

    Next, describe the buyers you're trying to reach - why they need and
    want (or will buy) your product - and the results of any tests or
    surveys you may have conducted.  Once you've defined your market, go
    on to explain how you intend to reach that market - how you'll alert
    these prospects to your product or service and induce them to buy.
    You might want to break this chapter down into sections such as...
    publicity and promotions, advertising plans, direct sales force, and
    dealer/distributor programs. Each section would then be an outline
    of your plans and policies.

    Moving into the chapter on competition, identify who your
    competitors are, their weaknesses and strong points - explain how
    you intend to capitalize on those weaknesses and match or better the
    strong points.  Talk to as many of your "indirect" competitors as
    possible - those operating in different cities and states.

    One of the easiest ways of gathering a lot of useful information
    about your competitors is by developing a series of survey questions
    and sending these questionnaires out to each of them.  Later on, you
    might want to compile the answers to these questionnaires into some
    form of directory or report on this type of business.

    It's also advisable to contact the trade associations and
    publications serving your proposed type of, business.  For
    information on trade associations and specific trade publications,
    visit your public library, and after explaining what you want, ask
    for the librarian's help.

    The chapter on management should be an elaboration on the people
    operating the business.  Those people that actually run the business
    - their job titles, duties, responsibilities and backfilled
    resume's.  It's important that you "paint" a strong picture of your
    top management people because the people coming to work for you or
    investing in your business, will be "investing in these people" as
    much as your product ideas.  Individual tenacity, mature judgement
    under fire, and innovative problem-solving have "won over" more
    people than all the AAA Credit Ratings and astronomical sales
    figures put together.

    People becoming involved with any new venture want to know that the
    person in charge - the guy running the business knows what he's
    doing, will not lose his cool when problems arise, and has what it
    takes to make money for all of them.  After showing the "muscle" of
    this person, go on to outline the other key positions within your
    business; who the persons are you've selected to handle those jobs
    and the sources as well as availability of any other help you might
    need.

    If you've been in business on any kind of scale, the next chapter is
    a picture of your financial status - a review of your operating
    costs and income from the business to date.  Generally, this is a
    listing of your profit & loss statements for the past six months,
    plus copies of your business income tax:  records for each of the
    previous three years the business has been an entity.

    The chapter on the explanation of your plans for the future growth
    of your business is just that - an explanation of how you plan to
    keep your business growing - a detailed guide of what you're going
    to do, and how you're going to increase your profits. These plans
    should show your goals for the coming year, two years, and three
    years.  By breaking your objectives down into annual milestones,
    your plans will be accepted as more realistic and, be more
    understandable as a part of your ultimate success.

    Following this explanation, you'll need to itemize the projected
    cost and income figures of your three year plan.  It'll take a lot
    of research, and undoubtedly a good deal of erasing, but it's very
    important that you list these figures based upon thorough
    investigation.  You may have to adjust some of your plans downward,
    but once you've got these two chapters on paper, your whole business
    plan will fall into line and begin to make sense. You'll have a
    precise "map" of where you're headed, how much it's going to cost,
    when you can expect to start making money, and how much.

    Now that you know where you're going, how much it's going to cost
    and how long it's going to be before you begin to recoup your
    investment, you're ready to talk about how and where you're going to
    get the money to finance your journey.  Unless you're independently
    wealthy, you'll want to use this chapter to list the possibilities
    and alternatives.

    Make a list of friends you can approach, and perhaps induce to put
    up some money as silent partners.  Make a list of those people you
    might be able to sell as stockholders in your company - in many
    cases you can sell up to $300,000 worth of stock on a "private
    issue" basis without filing papers with the Securities and Exchange
    Commission.  Check with a corporate or tax attorney in your area for
    more details.  Make a list of relatives and friends that might help
    you with an outright loan to furnish money for the development of
    your business.

    Then search out and make a list of venture capital organizations.
    Visit the Small Business Administration office in your area - pick
    up the loan application papers they have - read them, study them,
    and even fill them out on a preliminary basis -and finally, check
    the costs, determine which business publications would be best to
    advertise in, if you were to advertise for a partner or investor,
    and write an ad you'd want to use if you did decide to advertise for
    monetary help.

    With a listing of all the options available to your needs, all
    that's left is the arranging of these options in the order you would
    want to use them when the time comes to ask for money.  When you're
    researching these money sources, you'll save time by noting the
    "contact" to deal with when you want money, and whenever possible,
    by developing a working relationship with these people.

    In your documentation section, you should have a credit report on
    yourself.  Use the yellow pages or check at the credit department in
    your bank for the nearest credit reporting office. When, you get
    your credit report, look it over and take whatever steps are
    necessary to eliminate any negative comments.  Once these have been
    taken care of, ask for a revised copy of your report and include a
    copy of that in your business plan.

    If you own any patents or copyrights, include copies of these.  Any
    licenses to use someone else's patent or copyright should also be
    included.  If you own the distribution, wholesale or exclusive sales
    rights to a product, include copies of this documentation.  You
    should also include copies of any leases, special agreements or
    other legal papers that might be pertinent to your business.

    In conclusion, write out a brief, overall summary of your business -
    when the business was started, the purpose of the business, what
    makes your business different, how you're going to gain a profitable
    share of the market, and your expected success during the coming
    5-years...

    The last page of your business plan is a "courtesy page" listing the
    names, addresses and phone numbers of personal and business
    references - persons who have known you closely for the past five
    years or longer - and companies or firms you've had business or
    credit dealings with during the past five years.

    And, that's it - your complete business plan.  Before you send it
    out for formal typing, read it over once a day for a week or ten
    days.  Take care of any changes or corrections, and then have it
    reviewed by an attorney and then, an accountant.  It would also be a
    good idea to have it reviewed by a business consultant serving the
    business community to which your business will be related.  After
    these reviews, and any last-minute changes you want to make, it'll
    be ready for formal typing.

    Hire a professional typist to type the entire plan on ordinary white
    bond paper.  Make sure you proof read (or is it "proofread") it
    against the original.  Check for and correct any typographical
    errors then one more time - read it through for clarity and the
    perfection you want of it.

    Now you're ready to have it printed and published for whatever use
    you have planned for it - distribution amongst your partners or
    stockholders, as the business plan for putting together a winning
    financial proposal, or as a business operating manual.

    Take it to a quality printer in your area, and have three copies
    printed.  Don't settle for photocopying...  Have it printed!
    Photocopying leaves a slight film on the paper, and will detract
    from the overall professionalism of your business plan, when
    presented to someone you're trying to impress.  So, after going to
    all this work to put it together properly, go all the way and have
    it duplicated properly.

    Next, stop by a stationery store, variety store or even a dimestore,
    and pick up an ordinary, inexpensive bind-in theme cover for each
    copy of your business plan.  Have the holes punched in the pages of
    your business report to fit these binders and then slip each copy
    into a binder of its own.

    Now you can relax, take a break and feel good about yourself...  You
    have a complete and detailed business plan with which to operate a
    successful business of your own...  A plan you can use as a basis
    for any financing proposal you may want to submit... And a precise
    road-map for the attainment of real success...

    Congratulations, and my best wishes for the complete fulfillment of
    all your dreams of success!!!