Next you need to define the market in which you are competing by getting information on:

• who your potential customers are
• who your competitors are, what services they offer and what prices they charge
• the strengths and weaknesses of your competition
• current market size and growth potential.

This exercise may also help you identify services that are unlikely to be profitable and may be eliminated.

The next part of your plan outlines the process of promoting your services to your customer. Specifically, you will describe the following:

• how you plan to promote your services
• the geographic areas you would like to cover
• an estimate of your annual or monthly customer numbers
• your advertising plan, including the type of advertising your customers are most likely to respond to, when you want to send the message and how much you are prepared to spend.

A business plan is your 'road map' to successfully running your business. It helps you identify the key issues you must resolve before you get started. Once you get going, it helps you to make decisions about the growth of your business.

A survey of Australian small business owners conducted by Curtin University of Technology's Small Business Unit (SBU) has found that those with formal business plans grow faster and have higher average gross revenues.

The most challenging aspect of writing a business plan is to describe concisely your business and your vision for the future.

The most effective business descriptions:

• are written in a few simple words
• identify the market
• specify why the product or service is needed
• highlight why your business is special - for example, you are the only printer in a particular area.

Meanwhile, your marketing strategy needs to establish the four 'Ps': product, price, place and promotion. That means:

• the product or service you intend to sell
• the price of your product or service
• the place you intend to provide your service and why you have chosen this location
• how you intend to promote your business (already defined in your advertising and promotion plans).

Financial projections will always - contain the following:

• expected sales revenue
• expected expenses
• expected initial investment in the business
• any planned capital expenditure, such as computers, faxes or other equipment.

Usually you'll summarise these estimates of future events in three ways:

1. an estimated income statement for the next 12 months, month-by- month, and the following two years quarter-by-quarter
2. expected cash receipts and expenditures (this is usually referred to as cash flow)
3. a snapshot of your liabilities at a point in time (the balance sheet). Your financial projections may be prepared for any time period, but are usually prepared annually or monthly.

Other projections you might want to include are:

• a break-even analysis (this will tell you at what point you start to make some money)
• statistics that compare your expected results to those of other organisations in your industry.

A well-prepared and detailed business plan will help you persuade any outsider that you're headed toward creating a successful business.

The message a comprehensive plan delivers is: You care enough to prepare the plan, you expect to be in business long enough to carry out the plan - and you are treating what you are doing as a serious business.

A sound business plan also outlines the way you intend to run your business. This section will include:

• Where you will be operating your business. (For example: "We will be setting up the business at 123 Anywhere St. Floor space is 70 square metres.")
• Why you chose this location. (For example: "We decided on this location because of its easy access to public transport and off-street parking.")
• A description of any special facilities or equipment you need. (For example: "The business needs a telephone system, answering machine, computer, modem and fax, plus usual office equipment. No special equipment is needed.")
• Most experienced readers of business plans judge the ability of owners or managers to achieve the plan by the track record of the management. So:

• Detail the work history of all your key employees and yourself.
• Highlight experience specific to your target market. (For example: 'Jane Doe was formerly marketing manager with XYZ Printing, our chief competitor.")
• Highlight areas of expertise missing. from your organisation and when these holes will be filled. This helps you focus on any weaknesses and shows your future plans. (For example: "With increased customer numbers, we will need to expand our printing staff and install a new computer accounting system.")
• Describe how your management structure is organised. Use an organisation chart if it is easier.
• Describe the duties of the key management personnel. Include your own role and outline any role other key personnel will play.
• Your plan must include financial projections. These projections summarise the other sections of your plan, using the common language of numbers.