Creating a Business Plan
A business plan is the best way to determine if you really do have a good business idea that is worth pursuing. A business plan serves two primary purposes: it helps a business owner analyze whether or not their great idea can bring in more revenue than it costs to produce, and it explains the business idea in great detail to potential investors (like banks, for instance). A business plan for a new business should include assumptions about things like:
- Labor
- Raw materials costs
- Product/service pricing
- Potential customers
- Cashflow
- Business cycles (if any)
- A timeline of major events
- Existing & potential competition
- A marketing plan for how to communicate with your target audience
- An operations plan for day-to-day activities
It is important to understand that while a business plan is an essential planning tool for a new business owner, there is no “right way” to create one, as every business is different. Fortunately, there are a ton of free resources available out there to potential business owners to help them craft a functional business plan. We recommend checking out the following resources:
The Small Business Development Center Network
The Oregon Small Business Development Center Network provides advising , training , online courses and resources for businesses throughout our state. Oregon’s SBDCs deliver our services to anyone who owns or operates a business or is planning to start a business. They work with businesses in every industry and at every stage of growth from start-ups to well-established companies, from one employee to 500. In addition to no-cost confidential advising, they offer training and online courses that cover a wide range of business topics. The Oregon Network is a well-established partnership between 17 Oregon community colleges, two state universities, the US Small Business Administration and the Oregon Business Development Department.
The MHCC Small Business Development Center [501 NE Hood Ave., Suite 240, Gresham, OR 97030 // (503) 491-7658]
The Clackamas Small Business Development Center [7736 SE Harmony Road, Suite 172, Milwaukie, OR 97222 (OIT Metro Building) // (503) 594-0738]
The U.S. Small Business Administration [601 S.W. 2nd Avenue, Portland, OR 97204 // (503) 326-2682 // office hours: M-F, 8am-4:30pm] – The SBA has tons of information available about business plans, covering everything from how to write an effective executive summary to what to include in your business plan if you are looking to secure a loan. Browse the business plan section of their website by clicking here.
The Sandy Public Library [38980 Proctor Blvd, Sandy // (503) 668-5537 // Open M-F 10am-7pm, Sat 10am-5pm, and Sun 1pm-5pm] – When in doubt, turn to the library for information. Hundreds of titles available for basic business education and business plan setup. Ask a librarian for assistance.
Mercy Corps Northwest [43 SW Naito Parkway, Portland, OR 97204 // (503) 896-5070] – This non-profit organization is dedicated to assisting aspiring and current small-business owners throughout Oregon and Washington. MCNW offers a series of classes (Foundations I (6 wks - $175), Foundations II (4 wks - $200), Business Plan Intensive (4 wks - $100, for Foundations I grads only)) designed to teach you the basics of operating a small business, including how to craft a business plan. Click here to sign up.
SCORE [620 SW Main Street, Suite 313, Portland, OR 97205 // (503) 326-5211 // Open M-H 9:00am – 3:00pm, closed Fridays] - SCORE is a nationwide non-profit organization dedicated to the formation, growth and success of small businesses. The Portland chapter of SCORE is run by over 80 volunteers who have in-depth, practical experience running and managing businesses. They've been there and done that. Each has chosen to give back to their community to help others start and grow their businesses. These volunteers are ready to help you personally, by counseling you at no cost. Portland SCORE also provides high quality workshops on topics of importance to small business owners.
