Setting Up a Sound Business Plan

Business plans can be one of the most effective tools for the small business owner who is starting, growing and even managing a business. The business plan can have multiple uses and advantages. Provided is a list of important reasons to create a business plan:

  • The business plan is simply a must have for small businesses
  • Helps make important business decisions
  • Offer a reality check
  • Create new ideas
  • Creates a plan of action

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Internet Business Plan Template – Five Common Mistakes

Perspective business owners are prone to many mistakes when starting up a new business. One very common mistake is writing a bad business plan. At times, they fill the business plan with what they think investors or banks want to see instead of what will realistically happen. Then, when the bank turns them down, they sit back and wonder why. Here are five of the most common mistakes business owners make when writing an internet business plan template and ones that you would do well to avoid.

· Dismissing losses during the early stages of the business – losses are part of starting up new business, everyone knows it, and it is expected. Concentrating the business plan on only long-term profits will bring more questions than confidence. The first year of the plan should be laid out in full detail, including expected losses. However, the business should show reasonable progress over that time, even if it means the business will continue to lose money for a short period thereafter.

· Thinking your business is totally unique – few businesses created today are not already in circulation. However, improving on an already existing concept is what can turn a loser into a winner. Trying to sell investors on a “one-of-a-kind” business will have them running for the door. Show previous models and show how your business will improve upon its weaknesses.

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5 Points You Can’t Forget on Your Business Plan

If there’s one key determinate of the success of your company it’s your business plan. You need to make sure your business plan contains all of the details that you can conceive of, and that you make sure all of the pieces thoughtfully fit together properly. At the very least your business plan needs to include:

1. Summarize Your Goals for Your Business

You can’t reach a goal if you aren’t building towards it from the beginning. You want to be as specific as possible when you write down your business’ goals. All businesses need a minimum of one single clear goal, but most businesses will have a range of large goals they’re working towards. Before you do anything else you need to figure out what measurable and unambiguous goals you’ll be working towards. This is square one, the first step that all your other plans will rely on.

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