Money Talk for Women

How to Write a Business Plan

by Monica Rasso for Elegant Plus Magazine

Your dream might be to start your own fashion design company or open your own clothing store, but you don’t know where to begin!  The first thing you need to do is sit down over a period of weeks, even months, and do a bit of careful planning.  Chances are you will need to find investors in your dream, but even if you have the capital to start a company with your own resources, it’s best to have a solid business plan.

A business plan is vital to the success of your business. It is your roadmap to success! You wouldn’t start a long road trip across the country without a map! Why would you start your business, your dream, your hope without a plan? Besides being a directional and motivational tool, a business plan is important for obtaining financing from banks, venture capitalists and other start up funds. 

So where do you start? In writing a business plan, there are four main questions to consider: what, how, where and why. 

WHAT

1. What is my product or service? To answer this question, describe in detail exactly what you will be offering your customer. Describe the product or service in as much detail as you can. How is your idea unique? What value can you provide your customer? Why is this product or service needed?

1. What compensation do I offer any employees I may have? When do I plan to hire employees? Having a plan for when and if you will need to bring in employees can help your in organizing your business. You may site examples of when you would like to begin hiring.

1. What sources of help are available to me? It is important to know that help is available in planning your business. The local/state government, local college business advisors, Small Business Administration, and women business owners associations are all examples of service administrations available to help you financially and emotionally.

HOW

1. How do I pick supply and service vendors? What help can these companies provide for your business? For example, if you are starting a clothing store, where will you get your merchandise? How much time does a vendor need in order to get their product/service to you? You may begin to price the supplies necessary for creation of your product or service so that you can begin a budget. 

1. How do I fill customer’s orders or requests?  Will you provide a basic service or can customers do special requests? Who can you rely on to meet these special requests? 

1. How will I advertise my services?  Will you use local or national advertising? How much will all of this cost? What is the most effective use of advertising for your product? How do companies similar to yours advertise? 

WHERE

1. Where will I buy or lease an office/store? How big of a space do you need? What technology do you need? How will you transport, package, and/or deliver your product or service? 

1. Where will I get start-up funding? Bank, personal capital/savings, borrow from family/friends, or venture capital? You may want to look into possibilities of development capital from the Small Business Administration or women-owned business loans/programs or grants. 

1. Where do I want my business to be in five ten, fifteen, twenty years? Will you have more than one location? How will your business grow to be more profitable? Who can help you make this happen? 

WHY

1. Why should I choose a sole proprietorship, partnership, limited liability company, or corporation? What are the advantages/disadvantages of each? This question will require the assistance of a tax advisor. 

1. Why should I go into business anyways? What is driving you to open this business? 

Now that you have a business plan, what are you going to do with it? This plan should be used as your roadmap to start your business but also as a tool to look back on as your business grows and changes. Keep in mind that your success relies on your passion, commitment, and determination to reach your goals. Set goals and follow through! Put your dream on paper and make it happen! 

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