A discussion about the process, steps and options of starting a new business

So, now we have the basics fleshed out in our business plan.  We get to move on to the next areas, one fun and one not-so-fun (unless you have a trust fund somewhere).

Marketing

Here's the fun part!  You've already defined your target market.  How will you bring those people to your door?

If you are selling a product, where will you obtain it, and how will you determine it's selling price?  How will you sell the product, directly or through a commissioned salesperson?  If a service, how does your price-point compare to your competition's?

Include any factors you can think of that would support continued growth for your business.  For instance, I am importing Mexican folk-art.  I made note of the fact that since travel from the US to Mexico has grown at a rate of 7% annually, it would follow that this type of art will become increasingly popular.  Inc.com has a good article about relating trends back to market need.

Do you have a marketing budget?  How will you let your potential customers know that you're in business?  Do you plan on using direct-mail, promotions, special events, press releases or some other means?  Once you have customers, how will you retain them?  Will you have a loyalty program?

Finances

As we talk about marketing, that leads us right into the not-so-fun part...finances.  Once you start putting everything down on paper, all those start-up expenses begin to add up into a pretty hefty budget!  Where do you plan on obtaining those funds?  If you will be borrowing money, include in your plan how and when you will pay it back.

Think also about your ongoing expenses.  Equipment, supplies, inventory, rent, etc.  In all liklelyhood, you will be paying these expenses for at least a short time, unless you are really, really lucky.  Do you have enough cash set aside so that you don't go out of business before you even have a chance to earn a profit?

Include income projections for your business at one-year, three-years and five-years.  When will you break even on your investment?  John Donovan writes an informative white paper that includes resources you can use in forecasting your sales and income. (this is a Word doc)

This was just a short overview.  Books could be written on this subject, and in fact they have been.   It's easy to get overwhelmed with information overload.  Just take it easy, one step at a time, and the plan will get done.  And then you'll change it.  As your business grows and evolves, so will your business plan.

I'd like to hear your business plan war stories.  Which was the most difficult section for you?  Do any of you seasoned pros out there have advice to make it easier for the rest of us?