There are many things to consider when starting a new business.

• What type of entity should I form and what are the benefits?
• How much money will I need and where will it come from?
• Should I lease or buy my equipment?

All these questions can be answered with proper business planning.  Preparing a business plan will force you to answer these and many other questions and it will serve as a road map to help you better manage your business once you're operating.  It will also allow you to accurately present your idea to others, including lenders and investors. A business plan includes the following components:

• Executive Summary
• Description of the Business
• Management Summary
• Marketing Plan
• Competition Analysis
• Description of the Products/Services
• Operational Plan
• Financial Projections (3 years, 1st year month by month)
  • Startup Costs
  • Income Statement
  • Balance Sheet
  • Cash Flow
  • Breakeven Analysis
  • Assumptions

The most important part of the planning process is determining how much money, or capital, you will need to start your business and to keep it running until you begin to make a profit.  Most businesses fail because they underestimate how much..