Business Plan: Your personalized road map to small business success!
Writing a business plan is the most important first step you can take as an entrepreneur. It's the backbone of your entire business, forcing you to think about details like legal structure and leasing costs while also painting a clear picture of the industry so that you can position your business within it in the most beneficial and effective way possible.
There are a lot of business plan template software companies out there—but for something so tailored to your industry and your specific business choices and decisions, it's crucial that even if you use this software you take the time to filter any generic plan through the lens of your particular business.
[Image courtesy of anasararojas; some rights reserved.]
There are a lot of business plan template software companies out there—but for something so tailored to your industry and your specific business choices and decisions, it's crucial that even if you use this software you take the time to filter any generic plan through the lens of your particular business.
[Image courtesy of anasararojas; some rights reserved.]
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1. Executive Summary
Your executive summary is at the very beginning of your document—and this means, if a potential investor or loaner looks at just the first page, he or she should have a good idea what your business is all about.Include all the basic facts about your business: your name; your physical location, if you have one; and your business purpose.
2. Organizational Structure
Talk about the legal structure of your business: corporation / limited liabilty company, whether or not you have agreements with any vendors, whether you'll be managed by managing members or managers, and so on. 3. Industry Analysis
The only way to succeed in an industry is to understand it. Research your industry and lay out your findings here: talk about who the major players in the industry are, and discuss how they interact. Is there a competitor every 60 miles, or every block? Are your competitors primarily made up of franchises, or is the industry filled mostly with independently owned businesses? What upcoming technological advances are likely to shake up the industry? 4. Services and Products
Discuss how your services and products fit into the industry. If your industry analysis identified any holes, how will your business help fill them?Spell out what you offer in clear terms. If it's a product, describe its use, its physical form, and what it does for people. If it's a service, explain why it would be beneficial for someone to obtain that service from you rather than go to another company (or do it themselves).
Also discuss any intellectual property protections, such as patents or copyrights, that you might need to register for and provide the details of that registration.
5. Market Analysis / Marketing Plan
Take all of the moving pieces from the previous two sections and analyze your market. Who are they? How old are they? What are their income levels, and how much of their spending budget is typically devoted to what you provide?Now, how do you plan to reach those people? If your demographic is primarily seniors, online ads might not be the best way to locate them; conversely, don't market your product for young professionals in between daytime soaps.
This is another example of the high value a business plan can have for your small business—without a detailed market analysis and marketing plan, any marketing ideas you come up with to better reach your target market is really just shots in the dark.
6. Strategic Plan
Sometimes called "Sales Strategy," this section is a natural extension of your market research and delves into how you're going to physically (OK, or digitally) get your product into the hands of your waiting market. Describe the size of your sales team and how you're going to incentivize them to meet your goals. Or, if you won't have salespeople, how will you utilize your website to drive up sales? 7. Management Team
This section will deal with your business's key players. It will list each member of your management team, their qualifications and special skills, and their education. It should also discuss each member of management's salary, roles and responsibilities, and other personnel factors. 8. Financial Analysis / Financial Plan
In this section, you'll give a realistic projection of your profits and losses, both initially and for the next three years. How does your marketing analysis tie into your bottom line? If you're looking for investors, show clearly how that investment is going to enable your business to succeed, and use charts and graphs to drive the point home.(Hint: Ask your accountant for help preparing this section if math makes you a little dizzy!)
9. Additional Documents
Along with your business plan, you should include any relevant documents and paperwork relevant to your business, including:Text module
It's worth saying again: A business plan is the road map for your business. It's designed to keep you heading in a direction consistent with your vision for the company.
That said, like the roads themselves, your business plan is always subject to change. It's designed to keep you from losing your focus, not hold your business purpose in a rigid box—if a new opportunity presents itself, don't be afraid to revisit and revise your business plan!
That said, like the roads themselves, your business plan is always subject to change. It's designed to keep you from losing your focus, not hold your business purpose in a rigid box—if a new opportunity presents itself, don't be afraid to revisit and revise your business plan!
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