How do I develop a business plan?
Lots of new businesses fail for a very simple reason: they fail to establish a sound business and financial plan or forecast, which leads to inadequate or unwise financing. The financial requirements of businesses vary greatly. Fortunately, there are many resources to help you figure out what your particular business will need financially.
Trade associations are often a good source of information about the capital needs of a particular business.
The local office of the federal Small Business Administration (SBA) and equivalent state business development offices also can assist with business and financial planning for a new business.
An accountant, financial planner, or business lawyer who has experience with start-up businesses can be invaluable.
A business banker will have useful information and may provide professionals to help in developing a business plan.
If you're purchasing a business, look at prior financial statements and information on taxes paid, including sales taxes and payroll returns as well as the overall return. These should give you bases for forecasting costs.
If the business is going to be run as a franchise operation, the franchisor is required to provide information about many aspects of the business, which will help you determine the financial resources you will need.
Finally, software can be really helpful--there are good budgeting programs and overall business planning programs that can take you through some key steps.Once you have gathered this information, you are in a position to develop a business and financial plan.
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