Starting a business is an exciting prospect. The entrepreneur in all of us wants to share our knowledge and experience with the world and what better way to do that than to start a business? There are some steps that need to be taken, however, if you want to be successful in your new enterprise. Having the knowledge to do something is important, but there is a lot more to owning and running a business than just knowing how to make the world's best, newest, and most exciting widget. You need to have some  business acumen as well as financial savvy. Start with a basic business plan.

The Essentials
A name is important. There are several things to consider when thinking of a name. Make sure that you do not use an odd spelling of the words. Why? Because it will make it harder for your customers to find you. If you are going to start a bakery and you will specialize in cinnamon rolls, you do not want to call your new store the Sin-amon Roll Depot. People who hear about you will naturally look in the phone book for Cinamon Roll Depot and never find you. If you are a one-person operation, consider using your name in the business name. I owned and operated a company called Sullivan Imaging Group for several years. I was a one person operation, but the word 'group' implied there were more of us. I did process reengineering graphic design, so Imaging worked and I was known in the industry by my name. Think long and hard about the name.

Goals
You want to set some long term goals and some short term goals. Where do you want to be in five years? If you are creating the plan to use to apply for a small business loan, the banker will want to see a five-year plan at the very least. That plan needs to include projections for the next five years, with short term goals and strategies to get there. As you build your five year plan, be as realistic as possible. Research other, similar businesses and determine what you will do that is comprable to what they have done. If your business idea is brand new, the bank will be skeptical unless you can provide some hard data to show you can be successful.

Financial Information
How will you pay for this buisness? Do you plan on financing yourself or will you be looking for funding from other sources. How much will you need? Figure your overhead costs like rent, electricity, payroll, taxes, etc. Now, how much product or service do you need to sell to meet those expenses? Your first few months, even years in business will probably not be profitable so do you have enough money set aside to live on during the start up phase of your business. The bank will want to know all of this. You need to plan carefully and show the bank you are fiscally responsible.

What is your product/service?
In this section you need to describe in detail what you are going to sell. Is it a product? You need to list the raw materials needed and how you plan to procure them. What is the market response to this product? Is it new? How do you know that someone will buy it? Is it a service? What do you need to provide the service? What will you charge? Again, how do you know someone will buy this service?

Additional Information
In this section you will decribe your plans for hiring employees, possibly outsourcing certain functions like payroll and accounting, and the location where this business will be conducted. Include in here anything that did not fit in to the other categories of the plan.

Final Advice
Creating a business plan, even if you are not planning on seeking funding, is a crucial step in planning to start a business because it will force you to think of the details that go into running a business. It is meant to be a road map to your success and a living document at the same time. Once you create the plan, do not put it in the drawer or let it collect dust on the shelf. Refer to it frequently, tweak it or even revise it as needed, keep your long term goals in mind as you  work on the short term strategies to reach the goals.