McKeever - How to Write a Business Plan

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Mike P. McKeever

Names: McKeever, Mike P., author.

Title: How to write a business plan / Mike P. McKeever.

Description: Thirteenth edition. | Berkeley, CA : Nolo, [2016] | Includes index.

Identifiers: LCCN 2016026296 (print) | LCCN 2016038330 (ebook) | ISBN 9781413323191 (pbk.) | ISBN 9781413323207 (ebook)

Subjects: LCSH: Business planning. | New business enterprisesPlanning. | New business enterprisesFinance. | Small businessPlanning. | Small businessFinance.

Classification: LCC HD30.28 .M3839 2016 (print) | LCC HD30.28 (ebook) | DDC 658.15/224dc23

LC record available at https://lccn.loc.gov/20l6026296

This book covers only United States law, unless it specifically states otherwise.

Copyright 1984, 1986, 1988, 1992, 1999, 2002, 2004, 2007, 2008, 2010, 2012, 2014, and 2017 by Mike P. McKeever.

All rights reserved. The NOLO trademark is registered in the U.S. Patent and Trademark Office. Printed in the U.S.A.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without prior written permission. Reproduction prohibitions do not apply to the forms contained in this product when reproduced for personal use. For information on bulk purchases or corporate premium sales, please contact the Special Sales Department. Call 800-955-4775 or write to Nolo, 950 Parker Street, Berkeley, California 94710.

Please note

We believe accurate, plain-English legal information should help you solve many of your own legal problems. But this text is not a substitute for personalized advice from a knowledgeable lawyer. If you want the help of a trained professionaland well always point out situations in which we think thats a good ideaconsult an attorney licensed to practice in your state.

This book is dedicated to the memory of my late grandmother, Elizabeth Eudora Woodall Darby, whose influence I acknowledged only recently.

After more than three decades of working with many people at Nolo, I am amazed at the uniform spirit of goodwill and cooperation.

Ive been fortunate to work with some great editors at Nolo, beginning with the first edition (Jake Warner) through this (the 13th) edition (Marcia Stewart). Many more folks at Nolo improved the book greatly, especially Nolos Production team.

A special thanks to a number of generous individuals, each of whom knows a great deal about starting and operating a small business: Peg Moran, Terri Hearsh, Roger Pritchard, Jason Wallach, Harry Keller, Dan Peters, Sharyn Simmons, Larry Healy, and finally, Hugh Codding and Leroy Knibb of Codding Investments. And special thanks to Doug Winter, a generalist extraordinaire, for his advice on business plans for nonprofits (the new Chapter 13 of this edition). To all my readers, clients, and students who have shared their hopes, dreams, and problems with me over the years, thank you for your help. The best parts are yoursall the mistakes are mine. Many of your stories and suggestions appear here in disguised form. I hope all the readers will profit from your wisdom and generosity.

Mike P. McKeever

Oakland, California

Mike P. McKeevers education, work experience, business ownership, writing, and teaching careers give him a broad and unique perspective on business planning. He has a BA in Economics from Whittier College and a Masters in Economics from the London (England) School of Economics, and has done postgraduate work in financial analysis at the USC Business School. Mike has taught classes at numerous community colleges in entrepreneurship and small business management. He has published articles on entrepreneurship for Dow Jones publications, the Sloan Publications Business Journal, and numerous newspapers and periodicals.

Mike has successfully purchased, expanded, and sold a number of businesses, including a manufacturing company, tune-up shop, gas station, retail store, and commercial building. He has worked for a variety of companies ranging from small groceries to multimillion-dollar manufacturers. As an independent business broker, he assessed the strengths and weaknesses of hundreds of companies. As senior financial analyst for a Fortune 500 company, he wrote and analyzed nearly 500 business plans.

Currently, Mike enjoys email correspondence with a few readers relating to business plan issues. You can contact him at , or by phone at 415816-2982 (remember this is Pacific Standard Time).

People who say it cannot be done should not interrupt those who are doing it.

George Bernard Shaw

Youve got to be careful if you dont know where youre going because you might not get there.

Yogi Berra

Are you concerned about whether you can put together a first-rate business plan and loan application? Dont worry. This book has just what you need.

How to Write a Business Plan contains detailed forms and step-by-step instructions designed to help you prepare a well-thought-out, well-organized plan. Coupled with your positive energy and will to succeed, youll be able to design a business plan and loan package that you will be proud to show to the loan officer at your bank, the Small Business Administration, or your Uncle Harry.

After working with thousands of entrepreneurs (and wannabe entrepreneurs), I have observed an almost universal truth about business planning: Writing a plan is a journey through the mind of one person. Even in partnerships and corporations, usually one person has the vision and energy to take an idea and turn it into a business by writing a business plan. For that reason, I have addressed this book to the business owner as a single individual rather than a husband-and-wife team, group, committee, partnership, or corporation. And youll find that the same financial and analytical tools necessary to convince potential lenders and investors that your business idea is sound can also help you decide whether your idea is the right business for you.