* A Simple Business Plan *

Your fledgling business doesn't need a complex strategy document, just some basics! The first and foremost rule for crafting a strategic plan for your business is not be so afraid of the process that it stalls your progress. Here are some guidelines for developing a straightforward and effective plan.

SCALE IT DOWN

Unless you have an idea for knocking out Google, you probably don't need a 100 page plan. Most early-stage companies need a strategic outline about 10 to 15 pages. “Start by making your plan just big enough to manage your business,” Berry says. “The heart of a plan is strategy, not a long, complicated text.”

COVER THE BASICS

Bigger isn't better- it's confusing. You can always add components to your plan as your business grows. Review your capitalization requirements and capital resources. Clearly identify your market and provide a basic market analysis. List your assumptions and establish benchmarks. Outline basic financials, including sales forecasts and an expense budget.

TAP ONLINE RESOURCES

The Small Business Administration site (sba.gov) has guidelines and templates for creating a plan. Berry's site (bplans.com) features more than 500 industry specific plans so you can find your sector and start writing. SCORE (score.org) is a good resource for growing companies that need to expand their plans. Right-Brain Business Plan (rightbrainbusinessplan.com) helps creative companies brainstorm the left side of their business.

HAVE A FALLBACK POSITION

“If everything goes according to your plan, that's great,” says Thom Ruhe, director of entrepreneurship at the Kauffman Foundation. “But 99 percent of entrepreneurs need a contingency plan. Put in a line that says, 'If we don't have X dollars in sales by this date and we haven't obtained profitability, we will...' Do what? Double down? Change market tactics?”

ASK FOR HELP

Before putting your plan to potential investors, seek the counsel of trusted friends, business owners and other entrenpreneurs. Have them review your business plan, and listen to their suggestions. You typically get one shot with an investor, and vetting your plan is a good way to fill in holes and anticipate questions.

~Ivy Hughes