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Use of the following steps to follow in writing a business plan is highly recommended.


Do it yourself or get paid or unpaid help in the task of writing business plan.




recommended steps to follow or review to build a business plan are below:



There are three principal functions of a good online manager.


They are planning, directing and controlling the functions of the business or website.


As you ascend to greater profitability and success you are expected to spend more time planning.


However, a quick look shows that most off and online entrepreneurs and managers do not

spend enough time in the critical planning stage.


Many online entrepreneurs and managers find that the day-to-day demand placed on them leaves little time to plan.


Some will deal with problems and issues as they come along.


This means that much of their time is spent “putting out fires.


” Managers who take the time to plan will receive good business ideas and find other administrative

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and managerial benefits in the planning process. 




Managers who take the time to plan and plan effectively will improve performance and will

be better prepared to assume more responsibility or more complex tasks.


Planning consists of nothing more than making a choice concerning a course of action for the

future from a number of options.



It is recommended that new entrepreneurs sit down and immediately before doing anything else in a managerial sense develop a formal business plan.


A  formal business plan is a written document which details where your company’s business is currently and where you want to take it in the future.


The Plan should mainly consist of two parts, the Strategic or your long-range plan and your Annual Plan.  


Our suggestion is that any strategic plan be set up for more than one-year.

It would be more practical to install it for a 5-year duration.




A good plan will setup broad yearly goals for the business in terms of;

products, markets, organization, growth, anticipated yearly profits and a

5-year summary of expected profits, anticipated return on your

investment and on capital investments.


In estblishing your strategic plan begin to list of all your small business ideas.

Here you can begin to dream and list the things you want to achieve in the future. 

You also need to set and establish your long-range goals. 


Here it would also behoove the planners  set of goals benchmarks for the foreseeable future. 


It should also have operating and performance strategies that are necessary to achieve the plan’s established goals.


In other words just what performance and operating milestones and actions will be needed to achieve

the firms annual and long-range goals?


A good plan will detail expected annual profits and have a 5-year summary of expected profits at the end of the strategic plans lifespan.


It will have in it the annual and strategic plans analysis and the projections for the anticipated return

on your investment, and on capital investments on an annual and long-range basis.


The annual plan sometimes called the budget or an annual profit plan should be set within the framework

of the 5-year strategic plan. 


The annual plan should have a detailed plan of  the expected operating and performance actions for the next year.


A sound business plan can and should identify what management hopes to accomplish and the steps

outlined in the plan that it wants to take to achieve its objectives.




This annual plan in a firm’s overall business plan can most of the time be divided into two parts. 


It should have an operating plan and a financial plan.



The operating plan is the part of your plan for the annual operation of the business.

It should include actions plans in and for each of  the functional areas of your business.

There should be operating standards, and performance milestones for all functions involved in placing your product or service in the market place.

It should consist also of budgets for all operations, cost planning, and to install any operation sources needed to support the plan.





The annual financial plan within the annual business plan should show how much cash is on hand.

How much cash you plan to use and how the firm plans to fund or finance its cash requirements.

We suggest an operating plan that follows the organizational structure of your business.


Each department or other organizational structure should have its own operating plan.


After this, the various operating segment’s plans should be consolidated until all the units

have been combined into the total business plan.


The development of a sound financial plan is dependent on a well thought out operating plan.  

Each structure in the organization should contribute to the overall small business business plan.



In your operating plan, there should be:

     I.  An Action Plan

     The action plan should be linked by a Sales Plan.


The sales plan at a minimum should contain:


A.  Sales Operation Plan;

      B.  The annual operating or the operations plan for sales.

      C.  Your sales Administrative plan;


Here you should write a;

                       1. Human Resources Plan.

                       2. Financial Operations Plan.

                       3.  Administrative Operation Plan.


The sales plan can be a part of the plan for annual revenues; whereas,


the firm’s operating costs plan

should be a function of the overall annual operating plan.


In many plan the annual Human Resources, Financial, and  Administrative functions

will be linked to the plan for Administrative Expenses,


Many plans have all pending financial and administrative expense

and income linked to their Annual Income Statement. 


II.  The Budget Statement

Your budget can be a function to a Working Capital and a Capital Expense Budget.


Many plans  have evolved as part of their annual plan to establish weekly, monthly and annual Cash Flow Statement,

Financial Investments, and a Balance Sheet.




The annual business plan will take a lot of time, effort, and resources from other parts of a business. 


Taking the above sentence into consideration, why should you plan?


What benefits are to be gained from writing and following a business plan.


The following benefits can be  derived from installing a business plan and planning:

  1. Better Efficiency
  2. More Effective Coordination
  3. Increased Education
  4. More Accurate Decision-making
  5. Increased Motivation
  6. More Exact Performance Standards
  7. Better Organizational Communication
  8. Measuring and Setting Overall Initial Goals
  9. Establishing and Tracking Financial Goals


One of the several reasons above for establishing a business plan is that it will improve the

efficiency and effectiveness of your business organization.


It will provide also a look at your organization and how is its coordination among operating and

financial units or departments.


A good plan will also be an educational tool during its preparation and upon its completion.


Once a business plan has been completed it should play a fundamental part in the management process.


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It’ll should play a fundamental part in the framework of all business decisions in a business. 


A well thought out business plan serves to motivate all involved. 


It lets the firms Department heads and managers know how well they’re performing.


It’ll also will help measure managerial, employee and organizational performance. 


And finally,  a soundly developed business plan serves as an effective way to communicate

within a business organization.


It will improve communication among units, employees, managers and in overall organizational performance. 


A business plan serves to motivate since it lets the managers know how well they’re performing.


It’ll also measure managerial, employee and organizational performance.


As a business grows it will take on more complexity and a sound business plan becomes an absolute necessity.


In fact, there are few businesses that are too small to benefit from a business plan.


So, let us roll up the sleeves, take out a pen or pencil, get some paper, put on your thinking cap and begin

to develop a business plan for your entrepreneurial pursuit Good Planning!


We welcome any and all comments about this post.  If there are any questions about anything contained

in this post forward questions to



Bobby Williams is the founder and CEO of South Chi Marketing, Inc. He and his company have been marketing online for about 7 years. Mr. Williams, a retired Federal employee, has both bachelor and masters degrees in human resources management. South Chi Marketing is striving to live up to its motto, "complete honesty in all our business transactions".

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