As you begin to create your business plan, be sure to include the following essential elements.

1.            Executive Summary

This section should include a general overview of the services or products your business will provide, as well as a brief statement of the projected return on investment. It should also include subsections detailing the company’s objectives, mission statement and advantages.

Objectives are best presented as a numbered list. Keep the list short, and make sure items are displayed in priority order.

Your mission statement should be no more than two sentences, and convey your company’s mission accurately, but without flowery speech. Make sure this statement is brief, versatile and timeless.

The advantages subsection works best as a short, bulleted list of three to five points you feel will set you apart or give you an advantage over the competition.

2.            Company Summary

The introductory portion of your company summary should be a short statement of the products and services you will provide, and the method in which you will provide them. Be sure to provide the name of the city and state where your business’s operations will primarily be located.

The subsections of your company summary include some of the most important information in your business plan. In subsection one, you will need to state your company’s ownership, including whether you will be a sole proprietorship, LLC or other type of corporation, as well as the names of all official owners.

Subsection two is where much of the research comes in. It is commonly labeled as the start-up summary, and should include a bulleted list of planned equipment purchases, a budget — commonly in graphic table form — detailing other startup expenses, and another table that details your expected financing sources and total amount of financing you expect to receive. If you are using a business incorporation service, be sure to list all associated costs here.

3.            Products and/or Services

This section of your business plan is generally text-based and outlines the specifics of the products or services you intend to provide. Be very detailed here, describing not only products and services, but also the methods you will use to offer convenience or added value to your customers.

If you have any specific innovations that you feel really set your business apart, be sure to explain in detail. This section is your opportunity to show your investors that you are starting a business with positive long-term prospects.

4.            Market Analysis

Another research-intensive section, the market analysis will be useful for your investors, but also offers you an opportunity to research and outline your business’s potential.

Use the introduction to summarize your market analysis, and provide extended detail in the subsections. Discuss market segments in the first subsection — organized by age group, area or whatever other details are appropriate to the type of small business you are opening. Then, in the second subsection, discuss specific strategies targeted toward each market segment.

Finally, include a third subsection where you analyze your competition and provide information on the behavior patterns of your target market segments. Charts and other graphical representations are very helpful to your market analysis, and also give it a professional look that will appeal to prospective investors.

5.            Strategy Summary

The strategy summary details your approach to sales and marketing. This is where you can establish a marketing budget that will make the process of starting a business much easier once your business incorporation service has completed their work and you have acquired funding.

Be sure to include well-researched forecasts here for how quickly your business will grow and how effective you expect your marketing strategy to be.

6.            Management and Personnel

This section should detail the management structure, number of employees and your projected budget for operations and salaries.

7.            Financial Planning

Profit and loss and cash flow projections should be detailed here. Most importantly to investors, be sure to include a break-even analysis that offers a projected timeline for getting your business in the black. Any other financial information you have not yet included in your business plan will fit well in this section.

Putting it All Together

Put the finishing touches on your business plan by printing it on high-quality paper and binding it in an attractive, professional-looking folder. If you have a logo created, use the image as the centerpiece of an attractive cover page.

Starting a business carries its fair share of challenges, but with a thorough and well-prepared business plan and the assistance of a business incorporation service, the road to owning your own small business may be just a bit easier to travel.

Another benefit that should not be discounted, however, is the ability to deduct many of your expenses. Be careful of going overboard with these deductions, lest you find yourself on the wrong side of the IRS.

At the same time, though, knowing the common home office tax deductions can help you preserve your small business budget.

1.            Utilities

This will include a percentage of your utilities, based on how much of your home is used exclusively for business. Exclusive is the key word here. Part of the dwelling must be set aside for business use only, so working on a laptop at your kitchen table does not qualify.

2.            Household Repairs

If your business involves customers or clients regularly visiting your home, you may deduct a portion of household repair and maintenance costs as a small business expense.

3.            Rent and Mortgage

Both homeowners and renters can take advantage of these deductions, provided at least one room in the dwelling is set aside for the home business.

4.            Insurance

According to the IRS, if your home is your “principal place of business,” a portion of your homeowner’s or renters insurance cost is deductible as a home business expense.

5.           Your Car

If you use your personal automobile to travel to business meetings or make deliveries, the cost of upkeep, insurance and gas can be deducted. Be aware, however, that if the automobile is also used for non-business purposes, you will need to track your business-specific mileage, and only that percentage is deductible.

The importance of providing true and valid usage of your home and automobile for small business purposes cannot be overstated. IRS audits can and do happen, and should you find yourself on the receiving end of one of these, the auditor will expect to enter your home and see proof that you have a least one room dedicated to your home business.

As long as you are honest, however, you can successfully save a portion of your small business budget by using the appropriate tax deductions.

Instead, they began selling and promoting their wristbands with a logo that video game fans will find eerily familiar. It bears a striking similarity to the familiar “EA” logo used by Electronic Arts, makers of a number of high-profile video games, many of which are sports-centric.

Electronic Arts has been in the business of making video games since 1982, and has been using the current logo since the 1990’s. EA Sports, one of the company’s largest and most well-known divisions, makes games that run the gamut from football to basketball to golf. It’s the sports connection that most concerns Electronic Arts.

The connection is far from tenuous. Some sources, including video game industry blog Gamasutra, suspect that Energy Armor’s marketing ploy is very much intentional (http://www.gamasutra.com/view/news/37686/EA_Sues_EA.php). Purposeful or not, Energy Armor is suffering the consequences of their choice. After receiving no response to their requests that the acronym-sharing fitness company stop using such a potentially confusing logo, Electronic Arts decided to pursue the matter in court.

Energy Armor has apparently applied for a trademark for their version of the logo, but that application is still pending. This fact didn’t stop the wristband manufacturer from using the logo in advertising and on products.

Did Energy Armor perform a trademark and patent search? If so, did they simply choose to ignore their own logo’s similarity to the existing trademark? Worse still, are the suspicions of those who believe this was intentional trademark infringement correct? These questions may be answered in the upcoming court battle, but there is no question about the fact that Electronic Arts intends to come out swinging.

Among the demands: that Energy Armor destroy all items bearing the current logo and pay Electronic Arts damages for the high cost of correcting misinterpretations made by customers who believed there was some connection between the wristbands and popular Electronic Arts games.

Intentional or not, Energy Armor’s mistake could end up costing them.

While they may be forced to learn their lesson the hard way, new startups can certainly benefit from this example of what not to do. Skipping a trademark and patent search or ignoring the results can only hurt a company’s future success.

Business incorporation services exist to help fledgling businesses avoid this type of catastrophe. The decision to start a business rather than rely on an employer for income already carries its fair share of risk. Compounding that by failing to tend to every legal detail is both dangerous and unnecessary.

The business world will certainly be watching as the case of Electronic Arts versus Energy Armor unfolds. The importance of securing a business incorporation service to avoid going down Energy Armor’s path is likely to be only one of many lessons learned from this debacle.

And you will want to spend some time thinking about this too – don’t simply go with the first thing that pops into your head or your gut instinct. Chat it over with friends, do some research and come up with several ideas before making a decision.

Before doing any of this though you may want to do a trademark/name search to find if there are any other businesses out there using that name. You would hate to go through this arduous process just to find out that someone already has that name and has trademarked it.

Incorporating a business with a trademarked can be a costly mistake – at minimum you will be forced to change names and incur all expenses with doing that.  Next, you could be sued by the trademark owner and if you use a federally registered trademark improperly, you could really be in trouble. In this instance, a court will assume you knew the name was federally registered and consider you a “willful infringer,” meaning you could be put on the hook for large damages and the owner’s attorney fees.

If you choose to incorporate a business online with MaxFilings, we do a preliminary name check as part of our online incorporation process.

However, save yourself the trouble before hand when you’re deciding on what to call your new venture and do a quick trademark/name search (U.S. Patent and Trade Office) for your new business or products and also do some general searches on the Internet to see how the name is being used. You can also use a fee-based service like Thomson’s SAEGIS database.

Whatever you do, look into it…it will save you in the long run.

Of course economic recovery would mean people can find meaningful full-time work and begin rebuilding their lives.

And of course, many entrepreneurs and small business owners have been hanging on a thread for the last two years waiting for a meaningful recovery to get underway – according to a recent National Federation of Independent Business (NFIB) study, 53% of small business owners believe the economic climate will worsen in the next six months – that’s up from 37% just a month ago!

Other tidbits from the survey – the number of businesses saying it’s harder to get a loan rose to 15%. One good bit of news, 15% of businesses say they plan to hire, which is up a couple of points from the month before.

But the NFIB’s optimism index came in at 86.8 in March. Readings below 90 for this long is unprecedented (18 months straight to be exact). Nine of the ten components the NFIB uses to arrive at this optimism index number either fell or remained unchanged from their readings in February – not the “picture of an economic expansion” as so eloquently expressed by the NFIB.

Take a look at this report to see for yourself. While the economy’s future is uncertain, don’t let that dissuade you from incorporating a business. Many successful companies got their start during the Great Depression and other recessions that have rocked the U.S. since.

If you have a good product/service that people in a recession would find useful, don’t let the economic numbers discourage you…incorporate online today and when things finally turn around, you will be in a good position to really grow your business.