A Plan for Your Small Business
A Home Business Article Contributed by Alyssa Yerga
Put Your Small Business Plan in Writing
You probably have hopes and goals for your small business. You may even know exactly how you want to carry out your intentions to reach these goals. But you probably only have them in your head. It's important to bring these out on paper, or in this day and age, computer screen to give yourself a more definitive sense of direction for your small business. It's also important to explain, in detail, how you're going to go about achieving all you want to achieve. This is called a business plan.
It is important if you plan on going into business for yourself. And if you're planning on having investors or taking out a small business loan, it is vital.
Define What a Successful Small Business Is
The definition of success is a personal one.
For some, money is the only way to define success. If that's the case, carefully and realistically choose an amount you'd like your small business to bring in (say $250, 000) and a time frame (5 years). With rational reasoning, figure out how you can reach this goal in that time. Being better than your competition and keeping overhead low are two vague examples. Now you need to answer how you're small business is going to beat competition without spending a lot. That's where you'll find your path to success.
Others may have a more open-minded idea of success. Perhaps bringing in a large profit isn't necessarily the primary goal. Maybe it's offering a comfortable atmosphere where people can meet or display talent, like a small coffeehouse or art gallery. In that case, the steps to achieving this are to find incentives to bring people in, even if it isn't to spend a lot of money. Having customers pay $5 at the door to see musicians or artists may not make you rich, but it may make you successful.
What Goes in to a Small Business Plan
All business plans, whether they're for major corporations or small businesses run out of the home are written the same way. There are several books and websites that offer guidance about writing a business plan. Here are the basics:
The first pages will be your cover sheet, statement of purpose (goals for your business), and table of contents.
Next, you will talk about your business in great detail. What service or product will you offer? Where will the business be located? How will you market the product or service? Who will you be targeting as customers? Who is your competition? Who will be working for you?
Then you will get into financial data. Balance sheet, break-even analysis, monthly, quarterly and yearly detail, all the financial particulars of your business will be presented in this section.
The last section is supporting documents. Tax returns, licenses, lease contract, your resume and the resumes of your partners, press clips about your business any legal papers or documentation.
Obviously you want success, but a business plan will force you to state how you go about doing it. This way your hopes and goals won't simply be ambiguous by-products you think you want to achieve. They'll be real measurable objectives you will be able to accomplish.
