At Devereux & Co. we know that sharing knowledge is central to successful business.

In that spirit, please check this section of our web site often for great information and resources to assist you with making informed business decisions. If you have a general question, or need advice please visit our contact us page, or e-mail us at info@devereuxandco.com. We are always available to assist you with business or tax related issues. Our experienced staff takes pride in becoming a resource to clients. Enjoy these articles!

Why Having A Business Plan Is Smart Business

Many companies develop a business plan with one specific goal in mind -- to help secure financing. This, of course, is reason enough to have a business plan. But there are other benefits that make preparing a well-rounded business plan one of the most important steps you'll ever take to ensure your company's success. In essence, a business plan is really a management tool. It provides a written road map you can follow to meet intermediate and long-term objectives. It defines your products, enables you to project expenses and know the sales volume your company needs to cover costs. In a business world where it's all too easy to lose sight of long-term objectives while handling the day-to-day duties- of running a company, few documents can do more than your business plan to keep your company on track for success. What follows is a brief description of the components of a sound business plan. Even if you already have a company business plan in place, you'll want to read carefully to determine if you've covered all the information recommended for this vital document.

Writing Your Business Plan: A Step-By-Step Guide

A comprehensive business plan should cover six basic aspects of your company and its operation.

• Who's In Charge -- This section identifies the individuals who manage the company, outlining their abilities and experience in your industry or other fields.
• Your Company And The Competition -- In simplest terms, this section is about what your company does to earn income. It should also explain the size of your market, the percentage of the market you can expect to capture and any barriers to entry into the market. Finally, you - should detail what makes your company unique and allows it to be successful.
• What Do You Sell -- This section is devoted to describing in detail the products or services you offer. It's important to include a projection of gross profits each product line is expected to produce, as well as any patents or other distinct advantages that give your products an upper hand in the marketplace.
• Going To Market -- How will your company attract customers? That's a key question you'll answer by describing your marketing plan. You'll want to define your customers, how you plan to position your products or services, what advertising and marketing will be used and if there are any trends that will influence your marketing plan.
• The Company Structure -- In plain English, this is where you describe how your company is run. You'll want to outline how daily operating decisions will be made, and list key employees -- aside from top executives -- and their duties, education, skills and experience.
• Dollars and Cents - It's time to crunch numbers. This section covers your company's past financial results, using financial statements and income tax returns for the past three years to document performance. Looking ahead, this section should also project your company's income and expenses for the next three years. You should include assumptions used to project sales, cost of sales, operating expenses and cash flow.

As you can see, preparing a business plan requires a good deal of technical knowledge and information. You may want professional assistance in developing your company's business plan. As Certified Public Accountants with experience in writing business plans for a wide variety of companies, Devereux & Co. can help you prepare the kind of comprehensive business plan that will help your company secure financing and provide you with a management tool to help ensure your long-range success.

For more information on our business planning services, please call Devereux & Co. at 314-209-7777.