Write a bulletproof business plan

One of the biggest mistakes a young entrepreneur can make is simply failing to write a business plan. There is no other single process that can be more useful in beginning business problem-solving than addressing the risks and thoughtfully forecasting by writing the plan. Don't fall into the excuse that you have the business plan in your head. "That's a fantasy," says SCORE's Rudick. "It only becomes a reality when you put it into writing because when it's in your head, no one else can see it."

Not only is it a good planning tool, but a solid business plan is also your key to raising capital -- the money you need to get your show on the road. Although you may not have had time to build a long credit history to show that you are financially responsible, you can demonstrate your penchant for using sound judgment by crafting a document that sells your business and lures financers on board. It's your greatest opportunity to fill the credibility gap.

A business plan will showcase your product or service, how you plan to make a profit and the exceptional team who can bring the business to success. It should include market data and tests to show the service or product will sell, the essential skills that will drive profits, estimates for startup costs, projections for sales and profits, a break-even analysis and long-term goals for the company.

If, while writing the business plan, you decide from your research that the business isn't as sensible or profitable as you originally thought, the plan has served its purpose. Rather than cost you money and effort, you've spared yourself any loss. Once you've crafted a plan that satisfies you, show it to your mentor or entrepreneur friends and ask for their input on how to improve it.
Find inspiration from sample plans at any of the web sites you see beside this post. But be sure your plan shows your original thinking for the unique situation so that readers can see how the team problem-solves and relates to the business, says Stever Robbins, a business consultant and start-up veteran of nine companies.

The top-rated Business Plan Pro 2006 ($100 and up) from Palo Alto Software will walk you through the entire planning process. It includes cash-flow projections and a useful tool to help you understand when you'll break even. With the $200 Premier edition, you can collaborate with other teammates and split up specific parts of the plan to streamline the process. Best of all, it includes freebies like a company logo crafter and a guide to small business law.