There are several reasons why advanced planning is a critical step when starting a business. Planning provides a path to follow and offers the opportunity to measure the progress of the new business venture.

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A business plan helps you and others (investors, suppliers, employees, etc.) understand the operations and goals of your business. It also presents a simple concept of the company that can be easily explained to everyone. There are several core elements a business plan should contain. These are modeled on Colorado Small Business Development Center (SBDC) guidelines and include: 

The Business

  • Description of Business
  • Products/Services
  • Market Analysis
  • Marketing Plan
  • Location
  • Competition
  • Management and Operations
  • Personnel
  • Application and Effect of Loan or Investment

Financial Data 

  • Projected financial statements, including income statements, cash flow statements, balance sheets and assumptions to projected financial statements
  • Break-even Analysis
  • Sources and Uses of Funds 

Supporting Documents

These documents may include historical financial statements, tax returns, resumes, reference letters, personal financial statements, facility diagrams, letters of intent, purchase orders, and/or contracts. There are many resources available to assist you in preparing a business plan. 

Resources

The Aurora-South Metro Denver Small Business Development Center offers several workshops aimed at assisting a business owner in preparing a plan. For more information, visit aurora-southmetrosbdc.com

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