Business Plan Basics

A business plan precisely defines your business, identifies your goals, and serves as your firm's resume. The basic components include a current and pro forma balance sheet, an income statement, and a cash flow analysis. It helps you allocate resources properly, handle unforeseen complications, and make good business decisions. As it provides specific and organized information about your company and how you will repay borrowed money, a good business plan is a crucial part of any loan application. Additionally, it informs sales personnel, suppliers, and others about your operations and goals.

Plan Your Work

The importance of a comprehensive, thoughtful business plan cannot be overemphasized. Much hinges on it: outside funding, credit from suppliers, management of your operation and finances, promotion and marketing of your business, and achievement of your goals and objectives.

"The business plan is a necessity. If the person who wants to start a small business can't put a business plan together, he or she is in trouble," says Robert Krummer, Jr., chairman of First Business Bank in Los Angeles.

Just as a builder does not begin construction without a blueprint, eager business owners should not rush into new ventures without a plan.

On-Line Help

For on-line guidelines on Preparing a Business Plan the following links provide excellent outlines and suggestions.

• Connecticut Community Investment Corporation (CTCIC) provides guidelines for Writing a Business Plan on their web site.   

•  SBA web site includes information on writing a business plan, and has On-Line courses that provide step-by-step assistance in this most important part of starting a business. You will need to register but courses are free.  

•  SCORE offers guidelines for Startups and for Existing Businesses.

Local Help

For personal help on creating a business plan, visit our Calendar to find courses being offered locally.  Sort the calendar by the category "Business Training."

The  Small Business Development Corporation offers start up businesses consulting services for start up and existing small businesses and is a great place to start your project.  Community Economic Development Fund (CEDF), or seCTer are also available to offer personal at 860.437.4659 ext. 202.

You may also make an appointment with a SCORE counselor, who will work with you on the Business Planning process.

**Some content provided by the U.S. Small Business Administration (SBA)