Planning on starting your own business? Good for you! Many people never get to this crucial stage of decision. They play with the idea of starting a business but never decide they can really do it. Now that you've made your choice, however, there is work to do. There are several steps involved in starting any business, and the first one is to create a solid business plan.

A business plan is a proper document elucidating what all the business is going to be about, how the operations will be handled by the owners and what is the aim of the business. It is much more than just telling yourself that you are going to start a business. The business plan can be of tremendous use not only for you but also for your employees and customers.

Business plans are key to both a big business franchise and a small size operation. The actual plan will vary according to the size and scope of the ideas, so using a pre-written template for business plans is not a good idea. Think outside the box and tailor your plan to your needs not the needs of others.

What does a business plan consist of? The typical business plan is divided into several sections, each for a different purpose. In most cases you'll start off with an executive summary, which briefly summarizes your business's purpose and main goals. The second section describes your research into your business field; it's called the market analysis. The third section describes your business in more detail, explaining its organizational structure, marketing, and product line.

Finally, you have the funding and financials section. Money makes the world go round, after all, and businesses are no less reliant upon it. Here, you will describe how you plan to fund and expand your business. Some information you can add here includes whether you will be using startup business loans or similar investments, and how much of your startup funding will come from equity invested by the initial shareholders.

An appendix for business plans may be included. The appendix may contain credit history, legal documents, licenses, permits and contracts. The appendix may be very helpful for the suppliers and creditors which are some of the outside parties, if they wish to see some of the documents.

Most important, remember that business plans must be flexible. As your business develops, your plans should change. What worked for your brand-new home-based business may not work so well when that business grows into a big corporation. Keep your business plan workable by developing it as your business expands.