By VFranco Foster
Create a Business Plan for Teens
By VFranco Foster
OverviewAny teenager who wants to start his own business should begin by creating a business plan, a well-thought out document that details goals along with ways to measure if he is succeeding. A solid business plan is a critical component for staying on track when it comes to starting and maintaining a business. Perhaps more importantly, if you hope to bring investors on board to help you get your business off the ground, they will need to see a business plan before committing any money to fund your idea.Step 1Write your introductory paragraph, which briefly describes what service your business will provide and the goals you have for it. Include who will own this business, including any partners and employees. The introduction is also the place where you add a sentence explaining the skills or experience you bring to the business that gives you a competitive edge.Step 2Detail your marketing strategy in the next section, including what you are offering and to whom you are offering it. Include details about market demographics and how you plan on targeting this group. The marketing section is also where you detail your pricing strategy, which includes what you plan on charging and the reasoning behind it.Step 3Explain how you plan on funding your business venture in the next section, which will cover financial management. Include information about any equity or equipment you plan on contributing or paying for and create a budget for how much money you anticipate needing to support your business. Use a spreadsheet to create a monthly cash flow projection for the first 12 months that includes both money in and money out. If you are presenting this plan to potential investors, you will need to discuss who will be managing your finances and outline when you anticipate turning a profit. You will also need to create some financial contingency plan solutions so investors know you have thought through what happens when things do not go according to plan.Step 4Outline how your business will run on a daily basis in this fourth section, which discusses operations. This will include any plans you have to hire people and how they will be managed, as well as any equipment or space you will need to rent or purchase in order to provide your service.Step 5Conclude your business plan with a reiteration of your goals and ideas. Be sure to include a sentence or two that impresses upon interested parties your commitment and desire to see your business succeed.skill3tipBefore putting pen to paper, think about if you can realistically manage the time constraints inherent in going to school and running a business. Visualize “crunch time” at school and ask yourself if your business can afford to take a back seat to your studies. If not, you will need a back-up plan to pick up the slack when you are otherwise occupied.tipsBefore putting pen to paper, think about if you can realistically manage the time constraints inherent in going to school and running a business. Visualize “crunch time” at school and ask yourself if your business can afford to take a back seat to your studies. If not, you will need a back-up plan to pick up the slack when you are otherwise occupied.warningBe doubly sure this business is what you want, as there may very well be lots of times when you must choose between extracurricular activities and your business.warningsBe doubly sure this business is what you want, as there may very well be lots of times when you must choose between extracurricular activities and your business.ResourceskeywordsbusinesskeywordsplankeywordsteenreferenceSmall Business Administration Teen Business LInkresourcePittsburgh-Area Teens Compete in Business Plan Competition
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