Writing Your Business Plan (Pond Landscaping)

Writing a business plan is not always what it's cracked up to be. While you may be an amazing landscaper that can create a backyard like no other, not everyone is good with writing a document you would present to a bank or other business institution. Where do you start your business plan? How do you know what information to provide and what to leave out? What do you really need this information for anyway?

Where do you start?

When starting a business plan, you have to consider who you are showing this document to. In most cases, this document is being shown to a company that is looking for your financial information. When this is the case, the company needs to prove (through this document) that they are in good financial standing and plan to remain successful. To do this, you need to provide them with all the information on your company (marketing & advertising efforts, information on the company and the industry, how your company operates, your financial information, etc.). You should also include some analysis to verify that the information you are providing in this business plan is accurate.

Why do you really need this information?

When you don’t require anything from a financial institution and your company is successful on its own, why do you really need a business plan? No one is specifically looking for the information, so why take the time to write out a business plan? A business plan shows you what direction your business is going in. It helps you to set goals and objectives for your company, both monthly and annually. Also for a new business owner, it shows you the potential for your company, and makes sure you consider all the factors before going ahead with your business decision.

The categories in a business plan

There are several different categories of information in a business plan, all of which require consideration and thought. The main categories, the business environment, the marketing plan, operations and finance each have sub-categories to provide the reader with an organized format to read in.

Business Plan Category 1: The Business Environment

Business Summary & History

This should include:

Company’s location
Information on the owners (their role in the company, background information)
Information on employees (how many acquired, what training they’ve received)

Industry Overview

This should include:

Background information on the industry
- Is it commonly purchased?
- Where do people buy it?
- Who are your major competitors
Approximate market size (in a percentage)

Sectors Within the Industry

Different areas within the industry that you can find work
Which of these sectors is your focus?

Seasonal Factors

What impact the weather has on the company

Consumer Trends

What do you find similar about your consumers
- Do they purchase the item only in a specific place?
- Do they have packaging preferences?

Position in the Industry

Where your company stands in the industry
- Potential market share

Competition

Who is currently leading the market

Use of Technology

How is technology used in the market
How much technology does your business require

Business Plan Category 2: The Marketing Plan

The Target Market

Who is your main focus?
Who buys your products?
- Approximate age
- Stage in life cycle (single, families with children, retired)
- Social class (lower class, upper class, middle class)

Services

What do you offer your consumer?
How can they contact you?
Do you have a website?

Pricing Strategies

Approximate prices for each product line

Credit Terms

Will you accept credit on your purchases?
How long does the consumer have to pay on credit?

Sales/Distribution Plan

How will you distribute your products to consumers

Advertising & Promotions Plan

What will your company do to advertise their products?
- Direct Mailings
- Advertising in newspapers
- Selling door to door
- Offering coupons

Business Plan Category 3: Operations

Stage of Development

How long has your company existed?
Do you own anything
- Property
- Supplies
- Equipment
What else do you need to do to be operational?

Risks

What could potential harm the company (example: weather conditions)

Contingency Plan

If the company went under, what would you do to get back some of your investment into the company?

Production Processes

How will you produce your products?
Do you have an estimated production schedule?

Business Plan Category 4: Finance

Income Statement

Approximate total revenue (how much money is coming in)
What are your total expenses (how much money is going out)
What is your profit margin (revenue - expenses)
This shows whether the business efforts are worth it

Balance Sheet

This shows your company’s financial standing
Show your total assets (what holdings you have)
Show your total liabilities (what you have to pay out)
Calculate Owner’s Equity (assets – liabilities)
Owner’s Equity shows you the value of your company

Once you have provided this information in a business plan, you can come to some conclusions as to whether this business endeavor is worth the effort, money and time. You can explain why you feel this company is something people should considering investing in, and you can set some reasonable (benchmarked) goals for the company.

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