2. Next determine what business is right for you. Ask yourself these questions:

• What do I like to do with my time?
• What technical skills have I learned or developed?
• What do others say I am good at?
• Will I have the support of my family?
• How much time do I have to run a successful business?
• Do I have any hobbies or interests that are marketable?

3. Identify your business niche. Research and answer these questions:

• What business am I interested in starting?
• What services or products will I sell?
• Is my idea practical, and will it fill a need?
• What is my competition?
• What is my business's advantage over existing firms?
• Can I deliver a better quality service?
• Can I create a demand for my business?

4. The final step before developing your plan is the prebusiness checklist. You should answer these questions:

• What skills and experience do I bring to the business?
• What legal structure will I use?
• How will my company's business records be maintained?
• What insurance coverage will be needed?
• What equipment or supplies will I need?
• How will I compensate myself?
• What are my resources?
• What financing will I need?
• Where will my business be located?
• What will I name my business?

Your answers will help you create a focused, well-researched business plan that will serve as a blueprint for business operations, management, and capitalization. The SBA offers a tutorial on preparing a solid plan.

Once you have completed your business plan, review it with a friend or business associate. When you feel comfortable with the content and structure, review and discuss it with your banker. The business plan is a flexible document that should change as your business grows.