Are you thinking of starting a small business this year? Then you might want to create a business plan.
Why do you need a business plan? Well, the answer is pretty straightforward: You can use it as an organization tool, a template for you to rely on, and a working document that can tell where your planned business is.
Here is a quick guide you can use when creating a small business plan.
Do not forget your executive summary
Consider the executive summary as your business plan’s first chapter. This explains the nature of your business, the progress or status of your business, where you see your business in the years to come, and why you think the business will be successful.
Now, having said that, you may feel that the executive summary should contain a lot of information. But then, the executive summary should not be too long and span more than two pages. But you cannot underemphasize the importance of your business plan.
Although this may seem like this section should contain a significant amount of information, the executive summary doesn’t need to be more than one or two pages in length.
Some potential investors who might be interested in joining your business may just ask you for the executive summary of your business. This means you want to make sure your executive summary can surely go on its own.
Do your market analysis
The next step is to look at the industry you are going into, as well as your potential competitors.
The purpose of this activity is to let you and your potential investors have a sense of the industry and your competitors.
Explain the marketing and sales plan
How do you plan to entice your customers to become interested in tapping your business?
In your business plan, you have to state how you are planning to position your business and how your customers can interact with you. How would your products or services stand out against the competition?
For your potential customers, do you plan on advertising what you have, or do you intend to do a public relations campaign?
Indicate your financial plan as well as projections
In your business plan, you have to come up with a financial plan, including your projections.
Any business plan is incomplete without this section. You have to give yourself a look into the current situation of your finances for the businesses and analyse how your business would be in the future.
If you are in the line of business for quite some time now, you have to use financial data in this part. These include the following information:
- Income statement
- Cash flow
- Balance sheet
- Accounts receivable document (if this is applicable)
- Accounts payable document (if this is applicable)
Usually, a good business plan contains financial projections you have for the next 12 months of business. In many cases, a business plan offers a longer outlook and gives you a plan or strategy for the next three years, even five.
If your startup or high-growth small business needs a business plan, please email or call me on 0418 697 701 to arrange a free, no-obligation chat to see how I can help you.