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Starting A Business Plan

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Now that you realize its importance, the next thing that you should start working on is learning how to make one. But before you have the urge to get your computer going and start writing, here are the qualities of a good business plan that you have to keep in mind.

Background : Include some information on the catering industry at both the national and local levels. Take note of industry trends and try to forecast future developments.

It also needs to be written in formal format and style. You have to remember that a business plan is something that you may have to present to your business partners, financial firms and banks. So if you can, refrain from using slang in any part of your plan.

Financial Planning : Perhaps one of the most important parts of any business plan is the financial plan. You need to make some forecasts of revenue and expenditure over a period of several years. You can then estimate when you will reach a break even point and how much profit will be possible in the future. Set out anticipated monthly cash flows in a spreadsheet program on your computer. As businesses often don't grow as fast as their owners expect them to you should outline several scenarios. One scenario can show your expected outcome, one can show a more optimistic forecast and the third one can show a worst case scenario.

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