Writing a Small Business PlanWriting a small business plan isn't hard if you take it step by step, using small business plan sample documents and small business plan templates as a guide... Every new business owner should have a business plan to guide him or her. It will keep you on track and it may also enable you to obtain the start up financing that you need to get your business off the ground. If you followed the link to SCORE on the previous page, you may have seen that they have some guides to writing a small business plan on their site. This video will also help you understand the importance of an effective business plan: Plus, we've brought you some excellent advice from Pacific Business Marketing. All info used with permission. How to Develop & Use a Business PlanBy expending the effort to develop a comprehensive business plan, you will have a powerful roadmap for your company. It clearly states where you are, how you got there, and how you plan to proceed. This module steps you through the process of writing a small business plan. There are specific elements that a potential investor will look for in any business plan. Therefore, every well thought-out business plan should include the following components:
Your business plan will provide you—and potential investors or lenders—with a clear understanding of your objectives, strategies, and financial viability. Why Write a Small Business Plan?Business plans are prepared as a necessary part of raising capital from potential investors, bankers and other lenders. It is an essential document when taking your business public or selling all or part of a company. In fact, without one, soliciting a bank for funds is pointless. To lenders or potential investors, it not only provides information and reveals an evaluation of your venture's feasibility, but also reflects your management abilities. An analytical, objective business plan convinces lenders that you are capable, organized and prepared. One that is poorly researched, or makes unsupported assumptions shows that you are inexperienced and in their eyes...reckless. Writing a small business plan will take time, but it is well worth your investment in the long run. Tips for Writing a Great Small Business PlanTake time to do it well. Very few people would argue that planning is unnecessary. However, it involves a great deal of work. Be prepared to spend weeks—or months—completing your plan. Break the project into manageable chunks. While this undertaking may appear overwhelming at first, don't get discouraged. One effective approach is to put each of the following steps behind a separate tab in a three-ring binder. Fill in your plan, making steady progress toward your goal. Use the K.I.S.S. principle... Keep it Short & Simple. Although you may have volumes of supporting material, aim for a plan that is brief and succinct but includes everything important to the business. A proposal of 10-15 typed pages, double-spaced is often ideal. Leave secondary issues and details for discussion for a later meeting. Focus on your intended reader. Use the plan to organize your effort around your objectives, ensuring that you have all the bases covered. Investors or lenders are interested in determining whether you will be able to achieve your objectives. Keep it current. A business plan is a "living" document. Update it as your knowledge grows and whenever your strategies become more concrete. Also, avoid highly technical descriptions of your products, processes, and operations. Use layman's terms. Discuss your company's business risks, from a realistic viewpoint. Your credibility can be seriously undermined if existing risks and problems are uncovered by lenders or investors on their own. Base your projections on the results gathered from your analysis. Be honest about positive and negative findings. Don't make vague or unsubstantiated statements. For example, do not just say that sales will double in the next two years or that you are adding new product lines. Back up your statements with underlying data and market information. Once your business gets underway, do flesh out your business plan with all the detail needed to guide your operations in the years to come. What Lenders Look for in a Business PlanHere are some key questions that investors and lenders will be looking to answer. Keep them in mind when writing your business plan.
Process for Writing a Small Business PlanThere are some basic steps that should be followed when writing a business plan. Here are the 10 basic sections to include in your plan:
There's a lot that goes into each of these steps, but this gives you an idea of where to start, anyway.
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