Step 4: Development Plans - Organization structure. - Admin, compensational and operational policies. - Immediate plan - identified in step 3. What are goals and objectives? - Mid-term plan - preparing for next phase of growth. - Market penetration - increase our sales in existing market by encouraging existing customers to make more purchases and converting non-buyers. - Market development - offer our products to other geographical markets or market segments. - Product development - develop new products that meet needs of existing customers. - Long term plan - Diversification. Make use of our existing resources to develop a new business.

Step 5: Financial Projections and Capital Budgeting - Prepare a pro-forma balance sheet and profit & loss statement for your proposed business. - The figures must be drawn from educated guesses based on an in-depth study of competitors or industry's financial performances. - This exercise will help us manage our cash flow better as well as determine amount of capital required to implement plan.

The above guidelines are meant to illustrate thinking process behind preparation of a business plan. You will have business plan drawn up simply by providing answers to all above questions.

While it may not guarantee success, business planning helps to enforce discipline by making you think twice before taking plunge. It encourages you to look inwards and outwards for answers and to evaluate your business ideas against various environmental and competitive constraints. In process, it helps to eliminate unnecessary mistakes and shortcomings.

In addition, planning process will help to develop your conceptual and analytical skills as well as sharpen your mind. Try it. You may find yourself a few steps closer to your dream of becoming your own boss.

The Complete Book of Business Plans by Joseph A. Covello, etc http://www.aloha-city.com/bookshelf/writing.html

One of best manual on writing business plans. Although it is meant for small business owners who have not undergone formal business training, concept and planning process is applicable to any business, large or small. Written in a clear and concise format supported by useful financial projections, book guides readers step-by-step through process of conceptual planning and writing a business plan.

Patrick Tan of Aloha-City < http://www.aloha-city.com >. Want to make money on the Web? Don't jump in before getting all the latest tips on starting and building a successful career online. Subscribe to "Back to Basics" Home Business Newsletter - send email to: basics@aloha-city.com. Visit Aloha-City for more resources on home businesses, affiliate programs and freelance work.

Don and others like him are my Real Network. If occasion arises I will send Don some work. (Note: Be cautious here. From other sources I already know Don's capabilities and business tactics. He's experienced and fair. Do not risk other network connections by referring them to someone who is, shall we say less than reputable). But whether I send any work Don's way or not, I've opened door to a whole new network of possible contacts. This conversation alone will stay with Don. I am talking to him as a friend, willing to do him a favor if occasion ever arises. For which in turn I am hoping, not expecting Don will do same. I have measured chances and thought that Don deserved my attention and a place in my network. If I am successful, Don will feel same.

Well, it's been a little over a year since then and my association with Don, which still is limited to talking and joking around at health club, has netted me, or Networked me 7 new clients. 3 of which Don referred to me directly, and 4 which were referred by his referrals. That my friend may seem like small potatoes to you, but never less is Real Networking.