Writing a Business Plan Series, Week 2: The Business

Week 33 NYC Skyline from Brooklyn Promenade, a photo by KimCarpenter NJ on Flickr.

For the next two weeks, I'll discuss The Business section of the business plan. This week I'll concentrate on Strengths and Weaknesses, Legal Structure, Business Description, Product Description, and Intellectual Property Description, using structure and templates from WIBO and Garrett Sutton's "Writing Winning Business Plans".

Strengths
According to Sutton, two types of strengths exist: common and competitive. "Common strengths are what I do well. Competitive strengths are what I do better than anyone in my field." WIBO considers the latter to be "your differential advantage".

I need to ask myself some serious questions: "are my strengths currently underutilized? What might I do to take advantage of my unique attributes? Knowing the difference is important because a business can improve through common strengths, but can dominate through competitive strengths. In what part of my business do my strengths lie? In my product? My operational logistics? Sales and distribution? Unique leadership skills or corporate vision? Which of my personal strengths can help my business?" I know I can be a bit of a dreamer, so  I "need to think creatively to highlight strengths that will realistically apply to my business". I also need to "understand the whys and hows of my strengths".

Weaknesses
These also come in two forms: common and catastrophic. "Common weaknesses are those shared with other businesses, like start-up hurdles. Catastrophic ones will consistently put me at the bottom of the pile. Common ones can be overcome, catastrophic ones can't or won't be overcome. Maybe one of my weaknesses happens to be a competitor's strength." 

Legal Structure

For my legal structure, I like the freedom an LLC gives me. I'm considering a Wyoming LLC because Flow Properties will invest throughout the country. They act as umbrellas over smaller LLCs which many of the properties will be structured as. 

Intellectual Property Description

WIBO gives great advice on how to protect your business' property - with trademarks, copyrights and patents. They state "the best way to ensure the fruits of your creative labor is to completely develop and market the finished product to the widest consumer base possible while excluding your competition using" the above mentioned protective devices. Sutton adds domain names and trade secrets to the mix.
One of the Rich Dad Tips listed in his book "strongly suggests filing for all available rights before distributing your plan." I consider that to be one of the best tips as I've learned that lesson firsthand.

Well, I have plenty of work to do, if the process of getting this blog post out is any indicator. Where are you in completing your business plan?