When to write a business plan, and what do I need before putting pen to paper?

There are all kinda of ways to tackle a business plan and no one way is the right way...if your interested I have a business plan that I created for a business partner last year (I think it's in the 40sh page range) ...it could help you as far as something to look at and compare...PM if interested...

Kalitarios said:

So I've always known I need to draft a formal business plan.  The overwhelming majority of businesses fail without one.
 
But as I start to put one together, I realize I don't have all the pieces.  Projections, sales figures, etc.  My website is still under development by the designer, etc.  I'm still unsure how and where to get the figures of what the industry holds for worth, etc.  (ie: the food industry is XXXX dollars, hot sauce is XXXX dollars of this industry, projected next year to have XXXX share of it, etc)
 
I figured I would head into the fray and sell my startup product, then hit the accountant up for a meeting, get a true sense of direction with the financials and then put it together.
 
Is this the correct way to tackle a business plan?  I'm expecting the document to be in the range of 40-50 pages.

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Ive been a commercial banker for the past 12 years.  Moved up the ranks and developed great networks throughout the years.  Now, i am in a finance roll with businesses that gross up to 50MM.  I offer my help with whatever i can.  I know the entire business process from an incubator to a multi million dollar business.  I manage some pretty good clients in in the south california area.  Anything i can help a fellow chillihead with i am all in....
 
As to a business plan, its a good benchmark as to how a business will perform in its first years.  When speaking about the projections and the "cogs" that it will have.  A business plan is what tells people what you know you will make given a certain roadmap.  Is it completely nessesary, no, is it recommended so that you know exatcly what you should do to have a profitable year?  absolutely.  A profitable business with a DSCR of 1.25 minimum is what you will strive for.  This will make your process easiest when lending needs arise in the near future.  There is so much to banking and business its crazy, thats why i love it. again, if you need any type of opinion on bankiong shoot me a message.    

Oh cool, I'll PM both of you about this.
 
Again, I'm not looking to go on shark tank or anything, but wanted something to put myself on track to stay focused and in a clear-cut, positive business.
 
I'll have my COGS by next week (accountant is number crunching this weekend for me) as I now have the final pieces of the puzzle coming together.

Awesome!! good luck and let me know if you ever need me.

Have a business plan: yes
Be flexible though and adjust it as you go.

Rigidly adhering to something that isn't working isn't the point of a business plan.

For me I handled it like a project plan. And at various points I've modified my plan.

A 40 page business plan seems a bit over zealous to me.

Start with an outline.

Determine your COGS. That means everything. Once you have that you can determine a price point.

Consider distribution and sales channels - where are you going to sell your product? What do you think a realistic amount is to sell per quarter?

You'll have to project some things like sales figures - you just won't know until you start trying to sell it. But if you know you'll be in 3 farmers markets a week then maybe you believe you'll move "x" bottles per market per week.

Consider scalability - what's your end goal? National brand? Glorified hobby? Something in between? That's going to be pretty important to consider before you ever make your 1st bottle.

So yeah - have a plan. Then be prepared to enhance, modify, or abandon it altogether as you learn more about the business.

Without it you're just randomly spending money rather than strategically making your money work for you.

I'm not saying i haven't wasted any money since I started this - far from it. But with the business plan I wasted less than if I were flying by the seat of my pants.

Good luck.

I had to write a couple of business plans when I got my MBA.  You can buy some software that will walk you through the process and will generate a pretty decent result.  I had to write mine on pacemakers - which I knew nothing about and was able to get most of the information that you reference on line.  Listen to Lucky Dog - he is in the business and, in my opinion, produces the best hot sauce that I've ever had (no offense to you as I haven't had the pleasure of tasting Sam & Oliver).  You will also want to do a SWOT analysis - very valuable.  Take care.

2nd on the SWOT analysis - critical tool of project management as well.

You can google it for details, but the gist is a pros/cons list on steroids. Critical decision making analytical tool.

I create one for every major purchase (for me that's anything over $500.) - knowing strengths, weaknesses, opportunities & threats and whether they're internal or external is a tremendous asset.

Buddy - thanks man, really appreciate that.

Get ahold of SCORE or your local SBA small business entrepreneur help office.  This is what they do.  Avail yourself of their resources and the wisdom of the SCORE volunteers.  Best part is, they are local to you.  A lot can be accomplished in a 1 hour sit down. 
 
If you can't find a local listing for SCORE or SBA help office, call your chamber of commerce.  They'd likely know.

thanks all!

IMO the SWOT and ROI are the 2 biggest things ....do you plan on having investors?