Going Into Business in West Virginia - West Virginia Department of ...

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Business Planning Why write a business plan After you’ve given some careful consideration to the business, you’re ready to begin putting your ideas on paper. That means writing a business plan — a formal document explaining in some detail your plans to develop a financially successful business. If you think the business plan is just a lot of paperwork, think again. It’s important for three reasons. • Preparing a business plan forces you to think through carefully every aspect of your business. • If you need outside capital, the business plan will be one of the first things that the lender or investor wants to see. • It is important to have a plan for internal use so you can make decisions in a systematic manner. According to Work.com, a well-crafted business plan is far more than just a written document — it forms the cornerstone of your business. It can help you grow more effectively, with greater focus and reduced risk. It is also a useful marketing tool for raising capital or recruiting partners, advisors, or key hires. Most importantly, it is the “process” of developing your plan that provides great value. By applying a structured approach, you will know the market, your customers, and the competition, and you will have real insight into the levers that drive profitability in your business. The Winning Business Plan A good business plan provides a tool to fully evaluate your business idea to see if it makes sense. The business plan says a lot about you as a potential business owner, including how much you know about the business you want to open. There are four major elements of a business plan. The written plan should be concise and to the point. 1. Description of the Business Give a description of your business that explains the nature of the business and its activities. Convey your vision of the business, your mission statement and describe how it will grow and profit. Describe your product or service, location, hours of operation, size, square footage, and inventory requirements such as storage space. Also give industry trends and growth potential. 94 Going into Business in West Virginia
Business Planning 2. Marketing Plan Identify your target market (your potential customers). Who are you selling to or who will buy your product or service What is the size of the group If there are segments or divisions of the target market, describe them by geography, demographics and psychological factors. How will you reach your market Describe how you will get the customer to purchase your product or service. State your sales strategy, pricing policy, promotional ideas, and advertising campaign. How are you reaching your target market Radio, print, flyers, TV, etc. If you plan to offer customer service, explain. This could include guarantees, warranties, repairs, special services, delivery and installation. Sample promotional material could be included in this section. Competitive analysis is necessary to evaluate the business playing field and identify a niche for your product or service. List your four major competitors by name. Describe their strengths and weaknesses. How will you compete against established businesses State your competitive advantage. Can you deliver a higher or better quality service than your competitors 3. Organization Plan Discuss the ownership of the business and the legal structure. Include legal agreements such as articles of incorporation or partnership agreements. List the skills and experience you bring to the business, especially management experience. Include a resume. Explain how the business will be managed on a day-to-day basis. Discuss insurance, the lease or any rental agreements. How will your business records be maintained How will you compensate yourself List business consultants such as a lawyer, CPA and insurance professional. Explain the personnel needed to run the business. List job titles, duties and wages. Discuss how you will hire your employees and explain personnel procedures. List benefits such as group health insurance and the costs. 4. Financial Plan Too many entrepreneurs try to start and operate a business without enough money. Request enough financing to cover all anticipated start-up costs, plus enough working capital to meet all monthly operating expenses, including the loan payment, for the first six months. West Virginia Development Office–Small Business Development Center 95
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GOING INTO BUSINESS IN WEST VIRGINI
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Table of Contents Chapter 7 Chapter
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Getting Started Owning a business a
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Getting Started Personal Considerat
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Getting Started Notes 10 Going int
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Finding a Business Starting and gro
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Finding a Business • What are the
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Finding a Business Notes 16 Going
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Choosing a Business Location Your C
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Choosing a Business Location Before
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Choosing a Business Location 22 Go
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Deciding on a Legal Structure The f
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Deciding on a Legal Structure Disad
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Deciding on a Legal Structure perso
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Deciding on a Legal Structure partn
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Deciding on a Legal Structure and z
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Selecting Your Insurance At some PO
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Selecting Your Insurance What are t
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Selecting Your Insurance For furthe
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Identifying Your Market No matter H
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Identifying Your Market Generally y
Page 46 and 47: Identifying Your Market These ideas
Page 48 and 49: What have you done What are you doi
Page 50 and 51: Identifying Your Market Notes 48 G
Page 52 and 53: Advertising Your Business Advertisi
Page 54 and 55: Advertising Your Business 5. Don’
Page 56 and 57: Advertising Your Business • Disco
Page 58 and 59: Advertising Your Business Notes 56
Page 60 and 61: Financing Your Business Will YOu ne
Page 62 and 63: Financing Your Business Review and
Page 64 and 65: Financing Your Business Small Busin
Page 66 and 67: Financing Your Business There are o
Page 68 and 69: Financing Your Business The Renewab
Page 70 and 71: Financing Your Business Venture Cap
Page 72 and 73: Financing Your Business Some state
Page 74 and 75: Financing Your Business Also, work
Page 76 and 77: Keeping Your Books Why keep reCOrds
Page 78 and 79: Keeping Your Books Federal Income,
Page 80 and 81: Keeping Your Books BooKKeeping sYst
Page 82 and 83: Securing a Business License Getting
Page 84 and 85: Securing a Business License File a
Page 86 and 87: Securing a Business License What is
Page 88 and 89: Securing a Business License What if
Page 90 and 91: Securing a Business License Departm
Page 92 and 93: Securing a Business License Contrac
Page 94 and 95: Securing a Business License Notes 9
Page 98 and 99: Business Planning Review the list o
Page 100 and 101: Business Planning Notes 98 Going i
Page 102 and 103: Finding and Hiring Employees How do
Page 104 and 105: Finding and Hiring Employees Job ap
Page 106 and 107: Finding and Hiring Employees The an
Page 108 and 109: Finding and Hiring Employees Center
Page 110 and 111: Finding and Hiring Employees Federa
Page 112 and 113: Reporting Taxes As an entrepreneur,
Page 114 and 115: Reporting Taxes To file, use the fo
Page 116 and 117: Reporting Taxes Warehouse “Freepo
Page 118 and 119: Reporting Taxes 3 SIMPLE STEPS If y
Page 120 and 121: Reporting Taxes Notes 118 Going in
Page 122 and 123: Using West Virginia’s Business Re
Page 128: West Virginia Development Office Sm
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