How to Develop a Small Business Plan
A Home Business Article Contributed by Cassandra l. Keller
How to Develop a Small Business Plan
Want to start a small business? Before you do anything, develop a small business plan. You will need a business plan if you are seeking financing for your small business, but more importantly, it is vital to the success of your venture.
What is a Small Business Plan?
A small business plan is a map of you business. It defines you business and establishes your goals. It is basically like a resume for your business.
Generally a small business plan includes an income statement, cash flow analysis and balance sheet. It will allow you the ability to allocate your resources in the best manner, make good business related decisions and be prepared for possible road bumps.
You most always need a business plan if you are seeking financing for your venture. The small business plan will include how you plant to pay back the borrowed funds as well as how the money will be used in the first place.
Finally, a small business plan is a way to identify you operations and goals in a form sales personnel and suppliers can understand.
Take Your Small Business Plan Seriously
Aside from a need for outside funding, your business plan is also crucial in obtaining credit from supplies, promotion and marketing of your venture, the achievement of your goals and objectives and gaining credit from your suppliers. It is for these reasons it is vital that your business plan is well thought out in every way.
Despite its great importance, many prospective business owners fall behind in this category. The business plan is terribly important, yet they resist putting their plans down on paper.
To help alleviate some of the pain associated with writing a business plan, there is available software designed to help the available business owner develop a small business plan. Check with your local office retail store or the local small business organization for more information regarding this software. You can also hire a consultant to assist with the task.
Things to Consider before You Write Your Small Business Plan
Before embarking on the large task of compiling a small business plan, ask yourself these questions:
1) As a business, what product or service do you plan to provide? What needs does your business fill?
2) Who will your customers be? Who will purchase your product or service and why do they want to purchase it from your business?
3) What is your marketing strategy? How will you reach these potential customers to tell them about your product or service?
4) If you need financial resources to start you small business, where will you get assistance from? Do you plan on starting the venture by yourself, forming a corporation or a partnership?
Once you have answered these questions, you can move on to the writing of your small business plan.
To learn more about small business and how to develop a small buisness plan, contact your local community business center, the local chamber of commerce, or the Small Business Administration at www.sba.gov.
