Planning Ahead for Your Small Business
Every small business starts with a discovery in deciding how you can turn a great idea into a profitable service that is in demand. No matter what your business model, nearly any product or service you offer has the possibility of leading to your small business success. All it takes is motivation, persistence, and a well thought-out business plan. Here, we've organized some information to consider when creating a small business plan of your own.
What Is a Small Business Plan?
A small business plan is a comprehensive guide to your small business. It defines what products or services the business provides, how they are provided, and the type of customers the business wants to attract. The business plan also addresses logistical concerns as well, including the business's relationships with banks and the government, the types of employees the business wants to hire, and most importantly, the business's goals for success. With all this information, this plan provides a number of benefits for the small business owner:
- Organization. The business plan acts as a comprehensive guidebook for the business owners and employees. As the business matures and staying organized becomes more difficult, a sound business plan can keep stakeholders on track.
- Definition. A well-written business plan stands as a symbol for the strength of the business and its management and speaks for potential growth. This is especially useful when approaching banks, partners, and potential investors with strategy ideas and requests for financial assistance.
- Management. A comprehensive business plan will act as a reliable reference for matters concerning the business's finances, investments, debts, taxes, personnel and other important information.
What Should a Small Business Plan Contain?
There is no specific way to write a business plan. Each will be as unique as the small businesses it represents. However, there are a few key points that the plan should include:
- Business Description. Selling your business starts here. The business description includes a mission statement and also details short and long-term goals, the proposed or working business model, the estimate value and growth potential of the business, and the most important assets as seen by the company's owners.
- Business Goals. To succeed as a small business, you have to clear, obtainable goals. Without these goals, your plan will lack a concrete direction and could threaten your organization's success. In this section, verbalize the What, When, and How of your small business's aspirations.
- Market Research. This section proves you've done your homework. Market research should include an analysis of your target market, target customers, and anticipated competition.
- Financial Plans. All financial records, from business loans and employee pay rates to quarterly financials go here. Keep records of all financial transactions. Think of this section not only as your personal organization tool, but also as proof to show future investors and bankers that you know how to manage your money effectively.
If you would like more information about writing your own small business plan, consider these sources for additional advice:
- The U.S. Small Business Administration (SBA) - The SBA offers online tutorials and educational resources for aspiring small business owners.
- Business.gov - The U.S. government's official business portal can connect you to thousands of helpful mentors and online resources for small businesses.
