WHY Xtra: 5 Business Plan Ground Rules

1. Know your market. Thoroughly investigate everything there is to know about your product/service, including target customers and competitors. Whether or not you plan to secure investors, you can’t know too much about your business.
2. Be realistic. We’d all like forecast ourselves as millionaires in five years, but it’s important to carefully assess your operating costs and growth potential.
3. Be accurate. Make a list of one-time and recurring costs. If you have to, get input from suppliers, advisors, partners and others who are knowledgeable about your business. You also should ask them for assistance with projecting future cash flows.
4. Get a second opinion. There are organizations that can provide valuable – and free – assistance, such as SCORE and the Small Business Administration.
5. Don’t just file your business plan away. Your business plan is a dynamic document and should reflect any changes that take place within the course of operating your company. Changing it doesn’t make it unsuccessful; it keeps it relevant.