Creating a Small Business Plan
The U.S. Small Business Administration provides helpful information for individuals who need to figure out a small business plan. One of the most helpful things they have created is the business plan template.
Helpful Pointers before Starting
The first thing to do with figuring out a small business plan is making sure to understand the purpose of the business. There needs to be a reason for the business in order for it to succeed. It also requires a clear plan that describes objectives and goals that apply to the business. It is important to incorporate discipline and logic into a business and should be updated to keep up with changes.
Writing an Executive Summary
The first actual part of the small business plan is to write the executive summary which should give a good idea of the objective of the business. This should be done concisely within two pages and it should create enthusiasm in the reader as well as give an idea of what the business will be about.
Business Description and Vision
In the next part of the small business plan, the mission statement should be made clear as well as the vision of the company as a whole. This will give a change to explain the key principals of the company and describe how that fits with the goals and objectives. This makes it easier to understand what the business stands for and what the potential of the company is.
Defining the Market
To define the market in a small business plan, it is important to figure out where the market fits in with the business. By identifying the target market and the business’ needs within that market, it is possible to define the general profile of the business’ target. Using a small business plan helps the reader see what customer needs are being fulfilled and the potential of the market.
Explaining the services or products
It is important to know just what product or service will be provided before jumping into a business. The small business plan suggests describing the product in detail and explaining what makes it more unique and competitive to the consumer.
Management of the Business
A company needs to have defined legal ownership as well leaders and a flow chart of operations. Furthermore it is important to understand the legal structure of the business and what licenses or permits will the business require.
How to Market the Products
Even know knowing the market, there still has to be an organized plan of marketing the product to the consumer. This includes how it will be promoted, priced, what products will be available, and how it will be distributed. Taking this step of the small business plan explains the market and just how to reach it.
The final section needs to explain in detail how money is involved in the process of starting or running the business. If starting, there needs to be estimations of the start-up costs and the projected income and cash flow for the first year. When looking at an existing business, these also have to evaluated, but both for the previous years and future ones. This will help explain the financial potential of the company.