Plan ahead with business plan software

Why do I need a plan?
True, a lot of businesses are started from scratch with little more than the energy and drive of the person or people leading it--and some of them are successful. But spending some time on a written plan can give you benchmarks to measure your progress and help you develop the business with more confidence.

"You can test ideas on paper before spending large amounts of money and time," notes Ed Rogoff, associate professor of management and director of the Lawrence N. Field Center for Entrepreneurship and Small Business at New York's Baruch College. "A persuasive business plan can not only establish strategies to manage risk, it can also attract investors and partners who will share your risk."

A detailed business plan improves your chances of getting funded.
If you have a fairly simple business, you can probably get away with a written business plan and an Excel spreadsheet. But considering its relatively low price--barely more than the cost of a few advice books--business plan software can simplify the process greatly. For more involved start-ups, it's virtually essential, especially if you need funding.

David Woods is a lead site director for D&H Logistics, a transportation service and commodities shipment company. Woods heads up the new branch in Birmingham, Alabama, which currently has 2 employees but plans for a total of 10 to 15. "D&H Logistics has been spinning off different offices [from its main location in Orem, Utah]," said Woods. "I was an independent agent working out of my home, and the boss wanted a Birmingham office."

Woods purchased Business Plan Pro and spent two days fine-tuning the proposal before submitting it to his boss. "He then came from Utah to Alabama and agreed to my proposal," Woods said. "I got the job, the office, and all company start-up costs allocated in that proposal were granted to me with virtually no questions asked."

Previously Woods tried to put together a plan without software while working at a different company, and his efforts failed. "I tried [doing it] based on my own field of knowledge. I made it only halfway through, never presented it, and ended up resigning from that company."

Use the program wizards to assemble your plan from scratch.
Great business plans accomplish many things, such as establishing your market, product line, and financials (usually for the first couple of years). By following the program's wizards, you'll be sure to craft a plan that meets all of these objectives, and more importantly, one that works specifically for your business.

Also, the software can, based on the answers you give to questions it asks, tailor its functions to guide you to through topics relevant to your industry and your specific business.

Compare your plan with sample plans from your industry.
Products such as Business Plan Pro come with more than 500 sample business plans from a variety of industries. These are a great start, though Stephen Bray went further. He's the owner of Matrix Insurance Services LLC, an independent insurance agency with three employees based in Watkinsville, Georgia. He used Ultimate Business Planner 3 to create his plan, then showed it to an employee at the University of Georgia's Small Business Development Center, which helps businesses get the financial and educational assistance they need to get off the ground.

Those courses normally take six to eight weeks, according to Bray. "I didn't go through their program, but I showed them the plan I created [with the software]," said Bray. "Someone there reviewed my business plan and thought it was exceptional."

Don't ignore free business plan resources or books.
CNET has blogged about business plans before, but don't forget to also check out the government's Small Business Administration Web site. It even has online training courses that deal with starting a business and writing a business plan. They won't guide you step by step the way business plan software can, but they're a good overall guide to help get you thinking in the right frame of mind.

Need legal advice for your plan? Check out Nolo's comprehensive online resource for businesses.

You can also use business plan books as guides in tandem with the software. (Search business plans on a book site or look in a bookstore with a good business section.)

Update your plan on a regular basis.
Your business plan is a living document. Periodically review it to (a) see how your actual performance is lining up with your projections and (b) revise it based on your current projected growth, industry trends, and so on.

"We entered our projections, and as we close every month, we'll take our current numbers and apply them against our projections to see where we are--up and down," said Bray.

If you're still having trouble, hire a business plan consultant.
In the end, your business plan tells you whether your new business venture can be successful. If you've done the research and you still aren't sure, you can also pay $2,000 or more (often much more) to hire a business plan consultant. Resources such as Bplans.com can help you find a consultant that matches up with your needs and goals.

You can also opt for a much less expensive review of the business plan you put together. A quick survey found basic review prices in the $395-to-$700 range.