Drawing up a small business plan is not only important for the organization and development of your company, but also for the purpose of securing some sort of loan from an outside source. Deciding what you will be using your small business plan for is the first step to developing a successful plan that will both arrange and secure profit for your business. Small business plans that are used for developing your business may slightly differ from those that are used for getting a small business loan. Whether you are creating a small business plan for personal use, or for financial purposes, there are some essential pieces that should be included in every business plan.
Administrative Summary
This section of the small business plan should include a short, usually one page summary of the entire business. Any important history of the company should be mentioned here including past profits, and important markers for the company. Start with an overview of the basic approach your business will use. State what your product or service is, and why it will stand above your competitors. Include where your business is currently, what your target market is, projected growth, who the main players in the business are, and what your financial necessities are.
Business Description
Use this section to completely describe all the details of your business. Present your product or service, and how that product or service will be sold and marketed, and who it will be marketed to. Speak about why your business will be successful, and how it will be profitable. Remember that if you're trying to secure a loan, you are trying to convince the lender that they will get their money back.
Marketing Plan
This section will be used to present the entire marketing plan including your niche market, and demand in the economy for your particular product or service. If you have any marketing research from previous years then make sure it is available here. Estimate the amount of the market you intend to take up, and what steps you will be taking to get your business on that level.
Executive Team/Organization
List here who the members of your executive team are, and what responsibilities each will be carrying. Give a biography of each member that includes their background, and why they are important to the team. Include salary rates and organizational structure as well.
Financial Necessity
In this section you should break down in detail what your financial necessities are, and what your projected income is. List all possible expenses on a monthly basis as well as yearly. Show projected profits based on realistic scenarios.
Though these are basic essentials for every small business plan, you should do a good amount of gathering information before first writing your plan. Research who you will be presenting the plan to, and find out what their requirements are.
Print | posted on Tuesday, March 25, 2008 5:29 PM