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By Erinn Stronkhorst at June 04 2019 04:47:38

Though it has undergone many changes, the business plan is still around. No longer limited to the traditional 12┫ page type_written document, a business plan can be exciting and engaging as well as useful. Many of us realize that it's the planning process, and the associated research and soul searching, that is so valuable. The finished plan is just icing on the cake.

Service Operation _ If a service is offered, describe it. Will the work be done by company personnel or subcontracted? Who are the subcontractor(s)? If on_site or in cyberspace, what employee qualifications, equipment, and technologies are needed? How will quality be assured? What performance levels are anticipated per employee? Possible Data Sources: local Chamber of Commerce; yellow pages; trade associations.

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Creating a Marketing Plan _ Similar to a business plan, the marketing plan spells out how you will market to new customers and retain current ones. The marketing plan should identify your target customers and develop a strategy to reach them effectively. Your marketing plan usually includes market research that gives you a profile of the ideal customer. As with your other plan, it is important to identify any strengths, weaknesses, opportunities and threats that may affect your company's operations.

But your fixed expenses don't do this. They remain the same no matter what sales does. That's why it's call fixed. These are expenses like rent, taxes, utilities, phone, salaries, insurance, etc. A lot of business owners never consider this. They just lump all their expenses together. But you could never make an accurate plan if you combine all your expenses together. If you project your sales higher and want to know what your expenses will be, you have to separate your fixed and variable.

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