Dear group,

Below is my new: BUSINESS PLAN FAQ v1.01

Those who may have an interest in this document are:

a) Business owners or managers
b) Non-profit organization administrators
c) Those contemplating starting a new business or charity
d) Students of business
e) Just plain curious folks :)

Best wishes,

Bessie DiDomenica, MBA
Founder, Author & Publisher
Make Business Accountable (MBA):
http://www.makebusinessaccountable.com/ (Who's computer is this?)

"All human beings are born free and equal in dignity and
rights."
-----Universal Declaration of Human Rights (1948)

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Bessie DiDomenica, MBA
Business Consultant
Box 920509
Needham, MA 02492 USA
781-440-6595
To contact via E-mail:
http://internetgoose.com/igc/feedback.html (Who's computer is this?)

To receive this FAQ when updated via E-mail, please request so
at the link above.

The latest version of this FAQ is archived here:
http://internetgoose.com/igc/faq/ (Who's computer is this?)

In a hurry? A Summary is supplied at the end of this FAQ.

----------------------------------------------------------------


BUSINESS PLAN FAQ v1.01
May 19, 2003

1. What is a FAQ?

A FAQ (Frequently Asked Questions) contains answers to questions
people have about a given subject.


2. Who needs this Business Plan FAQ?

a) Current business owners
b) Entrepreneurs
c) Non-profit organizations
d) Neighborhood restaurants
e) Local pizza shops
f) Small business owners (dress shops, flower shops, cobblers,
computer repair shops)
g) ANY business or organization!


3. What is a business plan?

A business plan is a tool in the form of a document to help you
define your business. It can help you evaluate your company's
strengths and weaknesses, secure a loan, forecast your financial
objectives and develop a marketing strategy. A good business
plan will help you create a long-term strategy for your
organization or company.


4. Why do I need a business plan?

A business plan is the best tool you have to evaluate your
existing company or a new business idea. It will help you map
out your thoughts, work through financial details, and research
your market and competition. It can also help you decide if you
should move forward with a business idea.

More importantly, a bank or lender will need to see your
business plan if you want a loan. A lender will know you are
serious if you have a well-organized and feasible business plan
available. In fact, anyone you approach for funding will want to
see a plan. This includes family, friends, venture capitalists
or angel investors. Remember the five P's: Prior Planning
Prevents Poor Performance! :)


5. Who needs a business plan?

In general, any type of business, company or organization should
have a business plan. This includes:

a) Small businesses
b) New businesses
c) Non-profit organizations
d) Large companies
e) Home businesses
f) Consultants
g) Established businesses
h) Solo practices, including lawyers, accountants, etc.


6. I just want to get a bank loan. Do I need a business plan?

YES! A bank will require a business plan before you apply for a
commercial loan. A business plan demonstrates that you
understand how money flows through your business. And it will
help you forecast your financial goals.

Whether your funding is from family, friends, banks or
investors, you should have a strong grasp of your company's
financial condition. Anyone lending you money will require that
you have this information. Remember, whomever lends you money
will want to be paid back. And they want to see the road map to
show them how you plan to do this.

For example, as an established company, you may be thinking
about introducing a new product. A business plan is a critical
piece of information that you need. It will help you decide if
now is the time to introduce that new product. Timing is
critical in business and a formal plan can help you make this
determination.

As a start-up company, you should evaluate your business idea
before applying for financing. A business plan is the ideal way
to illustrate your business to the lender. It clearly defines
your business strategy and will leave a good impression with the
funding source.


7. I already know all about my company. Why do I need a business
plan?

Of course, you may think you really do not need a business plan.
It is a difficult task, and requires you to think hard about how
you want to define your business. Some important things a
business plan can provide are: (1) a financial, management and
marketing strategy for your business, and (2) it shows your
investors that you are a serious business owner or entrepreneur.

If you are making any important changes to your organization
(trying to get a loan, hiring more staff, or designing a new
promotion campaign), you need a business plan to help you
diagram your most successful strategy. A business plan can
assist you in reaching your projected financial goals and in
managing your company's long-term development.


8. I would like to start a business. Why do I need a business
plan?

According to the Small Business Administration (SBA) Website:

"A Harvard University study showed that the amount of time spent
in planning a business is directly related to its success.

Owners spending six months or less [planning their new
business*] ended up with an 80 percent failure rate. Those who
took a year or more to plan ended up with an 80 percent success
rate."

* Editor's note

You can greatly improve your success rate by having a business
plan for your new company. So, do you want to have a successful
company or just become another government statistic?

If you are a start-up business, here are some issues to
consider:

a) How do I define my product or service?
b) Who are my customers?
c) What is my marketing strategy?
d) Who is my competition?
e) What are the barriers to entering the marketplace?
f) Who will help manage my company?
g) How much profit can I earn?

Other reasons to have a business plan are that you need to know
where you stand financially, what your customers want, and to
define the competitive advantages of your company. Some basic
components of your business strategy should include an analysis
of:

a) The current marketplace conditions
b) Your company's long-term financial objectives
c) The state of your competition
d) Your company's marketing strategy


9. My business is very small. Do I still need a business plan?

Absolutely! A company of any size needs a business plan. A
vendor selling pretzels on a street corner needs a business plan
just as much as a large multinational corporation does.

In the long term, a business plan will help you decide if your
idea is feasible as well as profitable. Whatever type of
business you own, you need to know where you stand financially,
what the competition is doing and the strengths and weaknesses
of your company. True, you may already know much of this
information, but you need to write it down in an organized
manner.

A business plan will help you understand how each piece of your
company fits together. For example, do you know that profit does
not equal revenue? But profit and revenue are clearly
intertwined.

Once you have a business plan, you will have a clear idea of how
to manage your organization efficiently. Managing a business is
like taking a roller coaster ride. A business plan can help you
ride the financial ups and downs and increase your success rate.
A plan can help you maximize your income and find hidden
opportunities to capture a larger market share.


10. Why do I need a business plan for my 10-year-old company?

If you have an established company, a business plan can provide
a road map for the future. It can also be a guide for an exit
strategy if you are thinking about selling your business. In
addition, it can be an excellent communication tool between
yourself and your staff. It can help you decide if you need to
expand, apply for a loan or hire more people.

As a business owner, you have to make difficult choices. These
decisions may find resistance from your management team. The
business plan can help you make those changes you know you need
to make. Any disagreements can be blamed on the plan, instead of
on you! :)

Maybe it is time to re-evaluate your business strategy? Here are
some thoughts to consider:

a) How has my competition changed?
b) Am I keeping up with my customers' demands?
c) Is my management team still effective?
d) Are my profit objectives being met?


11. What kind of business plan do I need?

The minimum information for your business plan should include:

Long-term financial planning to show your expenses and how you
plan to pay for them; and

An analysis of your customers, your competition and the current
state of the marketplace.

A complete business plan requires information about your
management team, product or service development, financial
outlook, customer base and the feasibility of your idea in
today's changing economic market.


12. We are a non-profit organization. Why do we need a business
plan?

A well-managed non-profit organization has a similar structure
as a for-profit business - the difference is that their
objective is more mission-driven (i.e. to benefit society)
versus finance-driven (i.e. making money). Non-profits are
facing management issues, raising funds, developing strategic
alliances, capital campaigns and finding a diverse donor base.

In the past, it was difficult for non-profits to think of
themselves as a business. Fortunately, this thinking is slowly
changing. They are starting to realize they have to compete in a
similar manner as for-profit companies. This means that
promotion, marketing and collaboration are becoming essential
for the survival of many non-profit groups. Therefore, a
well-managed charitable institution should also have a business
plan.


13. How do I create a business plan?

You can try to write your own business plan. You can save money,
and learn a new skill. However, business plans can become
complicated very quickly.

Writing a business plan is a time consuming process that
requires highly specialized skills. You can avoid the
frustration and save time by hiring someone to write one for
you.

Here are some things to consider:

If you attempt to write your own business plan, you will most
likely end up hiring a professional to complete it anyway.

You might find a software package or Website offering an "easy
and automatic" way to create your business plan. But as a smart
business owner, you are probably suspicious of these claims. And
you are right because chances are, you will be wasting your time
and money.


14. When do I need a business plan?

You need a business plan whenever you are preparing to make an
important change in your organization. A change can be anything
from hiring more staff, to moving, to starting a new venture.


15. How much does a business plan cost?

Generally, a professionally written business plan costs between
$500 and $20,000. Some complex plans can be more costly. It may
seem expensive, but in the long-term this is a very wise
investment. Again, remember the five P's: Prior Planning
Prevents Poor Performance! :)


16. Bessie, can you write a business plan for me?

I provide this FAQ as a public service to the business and
non-profit communities. Although this document is intended to be
informational and not a "sales pitch," I can write a concise,
professional business plan for you. For large-scale projects I
have a team of business development professionals available.

Please contact me, if you so desire:

Bessie DiDomenica, MBA
Business Consultant
Box 920509
Needham, MA 02492 USA
781-440-6595
To contact via E-mail:
http://internetgoose.com/igc/feedback.html (Who's computer is this?)

----------------------------------------------------------------


SUMMARY
BUSINESS PLAN FAQ v1.01
May 19, 2003

1. What is a FAQ?

A FAQ (Frequently Asked Questions) contains answers to questions
people have about a given subject.

2. Who needs this business FAQ?

a) Current business owners
b) Entrepreneurs
c) Non-profit organizations
d) Neighborhood restaurants
e) Local pizza shops
f) Small business owners (dress shops, flower shops, cobblers,
computer repair shops)
g) ANY business or organization!


3. What is a business plan?

A business plan is a tool in the form of a document to help you
define your business. A vendor selling pretzels on a street
corner needs a business plan just as much as a large
multinational corporation does. It can help you secure a loan
and forecast your financial objectives. A good business plan
will help you create a long-term strategy for your organization
or company.


4. Why do I need a business plan?

A business plan will show your lenders you are organized and
serious about your company. They will want to "see the numbers"
before they hand you any money. It will help you set down
realistic financial goals.


5. Who needs a business plan?

In general, any type of company should have a business plan.
This includes:

a) Small businesses
b) New businesses
c) Non-profit organizations
d) Home businesses
e) Established businesses
f) Solo practices


6. I just want to get a bank loan. Do I need a business plan?

YES! A bank will require a business plan before you apply for a
commercial loan. A business plan demonstrates that you
understand how money flows through your business. And it will
help you forecast your long-term financial goals.


7. I already know all about my company. Why do I need a business
plan?

Of course, you may think you really do not need a business plan.
It is a difficult task. Some important things a business plan
can provide are: (1) a financial, management and marketing
strategy for your business, and (2) it shows your investors that
you are a serious business owner or entrepreneur.


8. I would like to start a business. Why do I need a business
plan?

According to the Small Business Administration (SBA) Website:

"Owners spending six months or less [planning their new
business*] ended up with an 80 percent failure rate. Those who
took a year or more to plan ended up with an 80 percent success
rate."

* Editor's note

Another reason is that you need to know where you stand
financially, what your customers want, and the strengths and
weaknesses of your business.


9. My business is very small. Do I still need a business plan?

Absolutely! A company of any size needs a plan. A business plan
will help you decide if your idea is feasible and profitable.
Whatever business you are in, you need to know where you stand
financially, and your competitive advantage. True, you may
already know much of this information, but you need to write it
down in an organized manner.


10. Why do I need a business plan for my 10-year-old company?

If you have an established company, a business plan can provide
a road map for improving your organization. Maybe it is time to
re-evaluate your business strategy? It can help you start to
think about how your competition has changed, how to keep up
with your customers' demands and how to meet your financial
objectives.


11. What kind of business plan do I need?

The minimum information for your business plan should include:

Long-term financial planning to show your expenses and how you
plan to pay for them and an analysis of your customers, your
competition and marketplace conditions.


12. We are a non-profit organization. Why do we need a business
plan?

Independent of its mission, a non-profit organization is still a
business enterprise. They are facing management issues,
developing strategic alliances, and finding a diverse donor
base. A well-managed charitable institution should also have a
business plan.


13. How do I create a business plan?

You can try to write your own business plan. However, business
plans can become complicated very quickly. Writing a business
plan is a time consuming process that requires highly
specialized skills. Think about this: If you attempt to write
your own business plan, you will most likely end up hiring a
professional to complete it.


14. When do I need a business plan?

You need a business plan whenever you are planning to make an
important change to your organization. A change is anything from
hiring more staff, to moving, to starting a new venture.


15. How much does a business plan cost?

Generally, a professionally written business plan costs between
$500 and $20,000. Some complex plans can be more costly. It may
seem expensive, but in the long-term this is a very wise
investment. Remember the five P's: Prior Planning Prevents Poor
Performance! :)


16. Bessie, can you write a business plan for me?

I provide this FAQ as a public service to the business and
non-profit communities. Although this document is intended to be
informational and not a "sales pitch," I can write a concise,
professional business plan for you. For large-scale projects I
have a team of business development professionals available.

Please contact me, if you so desire:

Bessie DiDomenica, MBA
Business Consultant
Box 920509
Needham, MA 02492 USA
781-440-6595
To contact via E-mail:
http://internetgoose.com/igc/feedback.html (Who's computer is this?)


Copyright 2003 Bessie DiDomenica, All Rights Reserved

You may share this FAQ with your colleagues, friends and
business associates via private E-mail only, as long as it
remains in its entirety and this notice is NOT removed, and no
profit is made from the use thereof.

Please do not reprint by any means, post on public E-mail lists,
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first.

Use this FAQ and any posted Website URL's (addresses) at your
own risk. Please do not add me to any E-mail, Fax and surface
mail lists, both personal and public. Thank you!

---end---