Small Business Blog

When most business owners think of a small business plan, they think of a way to secure start-up capital. While it’s true that a good small business plan is a must-have for businesses looking for start-up investments and loans, a small business plan is an important document even if you’re not looking for start-up capital.In fact, a good small business plan is a crucial precursor to a good small business marketing plan. Why? Because the act of creating a small business plan forces you to think about your business in an objective, systematic way. It forces you, in short, to cover all your bases. And that will allow you to move forward with all of the information you need to create a dynamic, successful small business marketing plan.You can buy a software package designed to help you prepare a small business plan, though there are also a number of good free templates online. First and foremost, your small business plan should be well-organized. The essential components include:I)Executive summaryII)General company description1)Mission statement2)Company goals and objectives3)Business philosophy4)Market5)Industry6)Company strengths and core competencies7)Legal form of ownershipIII)Products and services1)An in-depth description of your products and/or services2)You competitive advantages or disadvantages3)How much your products and/or services will costIV)Marketing plan1)Market research: know your industry2)Market research: know your customers3)Market research: know your product or service4)Market research: know your competitors5)Find your niche6)Develop your sales strategyV)Operational plan1)Production2)Location3)Legal environment4)Personnel5)Inventory6)Suppliers7)Credit policiesVI)Management and organization1)Key employees2)Professional and advisory supportVII)Startup expenses and capitalization1)Forecast expenditures (add a 20% “contingency” item)2)Forecast startup contributionsVIII)Financial plan1)12-month profit and loss projection2)Four-year profit projection3)Projected cash flow4)Opening day balance sheet5)Projected balance sheet6)Break-even analysisThe part of your small business plan that will be most relevant in your small business marketing is the fourth section, where you’ll create your marketing plan. Understanding your industry, your customers, your product and/or service, and your competitors will set you up to optimize your small business marketing strategy. And finding your niche is a precursor to developing your brand.As you write your small business plan, avoid writing what sounds good but isn’t true. By making promises in your small business plan that you couldn’t possibly keep, you’re setting yourself up to fail. At the same time, don’t sell yourself short. Whether you’re using your small business plan to attract potential investors or as a guide for growing your business, you want to challenge yourself to reach new heights! I wish you the best of success with your small business.