The Better Way To Write a Business Plan

For the next few weeks, every gym in town will be packed with people who have set a resolution to shed a few pounds in 2010.  New Year’s is a time for setting and accomplishing goals both personally and professionally.  Not surprisingly, January is one of the most popular months for starting a new business.  So, if you’ve got the itch to become an entrepreneur, we’re here to help.  We’ve put together this simple list of the 3 most important steps for turning your idea into an actual business:

1)      Get incorporated.  This step officially turns your idea into a business in the eyes of Uncle Sam.  There are a number of websites out there that will help walk you through the incorporation process for an added fee.  This is a good route if you have a little extra money and you’re completely clueless about the whole process.   Otherwise, you can just file via the Secretary of State’s website in most States for a fee of around $150.  Most entrepreneurs file as a Limited Liability Company (LLC) these days.  But, you may opt for an S-Corp or a C-Corp.  Do some research online to make sure you pick the right corporate entity.

2)      Write a business plan.  This one stumps a lot of people who aren’t sure what to put in a business plan or how to create the financial statements.  That’s actually why we created BizPlan.com .  We’re entrepreneurs ourselves and we noticed that it was really difficult to create a business plan as a team.  Plus, we wanted a way to share it with our friends or potential investors and get feedback from those groups.  Bizplan.com allows you to quickly create and share a business plan online.  We give you guided templates, let you collaborate 24/7 with team members, and even track activity once you’ve shared your plan.  It’s a great tool for beginners.  But, many experienced writers use the site for its sharing and tracking capabilities.

3)      Get Funded.  The reason that most established businesses fail is due to a lack of proper funding.  Funding can come from your own savings, family, friends, or even professional investors.  If you can’t fund the business yourself, you’ll definitely need to cover steps 1 and 2 before looking for outside funds.  We suggest tapping into your own contacts first to see what kind of funding you can get.  If you don’t know anybody that can help you, we recommend checking out www.GoBigNetwork.com.  GoBigNetwork  is the largest online network that connects startups with early stage investors.  You can reach 20,000+ investors for a very small fee (around $59 at the time of this post).

The three steps above are crucial to getting your business off the ground.  But, the most important step is ‘Action’.  If you simply read this list or sit around contemplating all of the issues you will face when building your business, you’ll never turn your idea into reality.  So, what are you waiting for? Take action now!