How do I write a business plan for my Christian start-up? Part 2

Writing a business plan can be a hard task for an entrepreneur for many reasons, the biggest one of all being that the majority of entrepreneurs tend to be A type personalities. We subscribe to the “Just do it” mentality. We see an opportunity and are ready to go out and fill the need. “Forget about planning, lets get it done”. Right? We have the idea in our minds of the perfect product, service, or business. We know in our gut that there is a need for it, that people will love it. There are even many documented success stories where entrepreneurs went ahead and did just that. Unfortunately there have been studies done that show that the failure to have an adequate plan in place is a big factor in the failure of many firms. In the previous post I talked about why you need a business plan and what it should accomplish.

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This post will show you how to begin taking the two most important first steps when building your Christian business plan: establishing an appropriate framework, and filling in the blanks by doing the research needed. In this stage you will solidify your ideas and back up what you feel in your gut, with hard facts and data. Ideally the data will support your original assumptions and maybe even give you some ideas to add value or depth. It is very important though, to be honest with yourself and look at what your findings are telling you, because sometimes the data tells us things we may not want to hear. It may tell you that you have to tweak or change a few things. Then again it may tell you that your original idea needs a major overhaul, or that it won’t work in its current format. Unfortunately I have been faced with this scenario on at least one occasion, and although disappointing at the time, it saved me a lot of wasted time, money, and future heartache. Looking at the situation and data I had collected, in an honest way, helped me to see that I needed to look into starting up my business in a different part of the country. The location I was looking at, would just not support the amount of revenue I was looking for. I’m not saying to quit your dream if the data is not supporting your idea. What I am saying is to use the data to reformulate things to give yourself the greatest chance to succeed. The frame work for a business plan is generally agreed upon. What is up for discussion is how long it should be, what areas you should spend more time on, etc… I believe that you have to adjust your business plan to what you will be using it for. The plan should start off with a section called the Executive Summary. This part should summarize the most important points that you want to communicate. It’s like an elevator pitch for your business plan. An investor should be able to have a general idea of what you want to do and how you are going to do it. If they are interested they can dive into the details by continuing to read on. You will follow the Executive Summary with specific areas that address the overview of the company, products and services, marketing, management, operations, financials, legal, and (for Christian companies) social benefit. Here are some sites that have templates or advice on how to put this framework together. SCORE Business Plan Template SCRIBD Business Plan Template Free Sample Business Plans Business Plan Resources I find these links particularly useful. The sections that you use in your specific business plan depend on your business type and your purpose for putting together a plan in the first place. Is this to get yourself organized and focused or is it targeted towards raising capital? What kind of investors are you looking to target? Are they VCs that expect you to make it succinct and to the point, or are they family and friends, that will take the time to read through and understand your plan? Think about what you want the plan to accomplish. Guy Kawasaki’s book “The Art of the Start” is a good source of info for getting a new business off the ground. There are also some good resource links on his venture capital page. Once you have decided on your framework, its time to fill it in with the information you will need, make sure to leave the Executive Summary for last. It will summarize your plan, so leave it blank until you have input all your info and research. First you will fill in the parts you know. Fill in the Business Description and Company Background. Summarize your Business Strategy and describe your Products and Services. Make sure you also fill in information on any Competitive Advantages your company may have; unique or proprietary technology, processes, or expertise. Social Benefit and Exit Strategy would also be sections you may be able to fill out before doing research, but as with everything you are doing at this point these may change once you start doing more in-depth research. Once you have filled in what you can with your existing knowledge, you should start the important work of doing research to flesh out and back up your plan. Two good places to start for general information and resources are SCORE and the SBA. There are also many local entrepreneur centers and university small business resources that you could tap into, close to where you live. In the next post I will talk more about research types and sources. I will also list some sites where you can get statistics and information that targets Christian business specifically. I welcome your comments regarding whether this post has helped you to put together your business plan, or if you have other resources links that could help others to put together their plan.

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