Write a Business Plan For Your LLC
By Mark A. Thomas
Even if you think you don't need to raise money, writing a business plan when you form an LLC is a smart move. It allows you to see the strengths and weaknesses in your limited liability company early on. Forming an LLC without a business plan is like taking a road trip without a map.
Your business plan should contain the details on how your LLC will operate, financial projections, the research you have completed on the market and your competitors as well as the marketing plans for your LLC.
A well organized business plan for your limited liability company can help you:
- Estimate your start-up costs
- Analyze risk and anticipate potential problems
- Create revenue forecasts
- Make a profit early on
- Convince potential investors that your LLC is a good risk
There are many formats you can use to write a business plan. Whichever format you choose be sure you include these key points that will make your plan organized and well thought-out.
Start with a problem statement. Define how forming an LLC will benefit your customers and fulfill a need that exists in the market. For example, a lawn care service can ensure a beautiful, well maintained lawn for the customer without a lot of time.
A business description gives details on what services your LLC does or does not perform. Be specific, the details you give will help you determine the amount of money you will need in start-up costs.
Your marketing plan will be a robust part of your business plan. The marketing plan should include the market research you have conducted on how your LLC fits into local and national markets. It should also include the analysis on how your business compares with the competition. Make sure it includes your target customer and how you will market your business to reach them.
Even if you do not need investors, you want to know that your limited liability company has the potential to turn a profit. Your financial projections should include analysis and forecasts for:
- Start-up costs
- Break-even points
- And cash flow
Unless you are forming an LLC that is a one man operation you will need a staffing plan. Your staffing plan should provide detailed job descriptions and whether you will hire employees, payroll through a staffing agency or use independent contractors.
Statement of Personal Finances
If you do need investors to form an LLC then you must write a financial statement. You will need to list your personal assets, liabilities, sources of income and expenses. Be honest here and include the good and the bad. You want to make sure that you have revealed anything an investor might find out about you on their own.
Here is your chance to shine. Show investors you have the know how to run a successful business. Under business accomplishments, list any experience, training and formal education or success stories that pertain to your business goals.
Your plan summary is your final step in your business plan. Consider this your high points page. Here you will summarize your LLC's goals, how much money you need and how much revenue you expect to make.
To learn more about writing a business plan for your LLC click here: http://www.ezonlinefiling.com/form-an-llc-2.php
Mark Thomas: Mark has served in various roles in corporate America over the last 25 years, most notably in charge of large organizations with over 1000 employees. During this time, he has also owned several small businesses and has developed a keep awareness of how different the two worlds are and the special challenges faced by entrepreneurs. Because of his background, Mark is able to bring a unique perspective to new business owners and his addition to our team has all of us excited. Look for his posts to cover anything and everything related to business. He has also said that he is looking forward to hearing questions and comments from you, so please leave comments!
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