A business plan is a document that summarizes what your business is all about. It tells where you want to go with your business and how are you planning to get there. More specifically, a business plan for your small business summarizes the financial objectives of your business and your future position in the market that will give you the edge to achieve your goals.
Most importantly, the business plan is created as an essential asset that can help you raise capital. This capital will help you kick-start your business. In this article, we outlined the initial steps that you need to write a business plan for your small business successfully.
All business plans have common goals – describing the business and its purpose, market analysis, financial projections. But the size and roles of the business plans, in general, is different. This a lot depends on your short-term and long-term business goals.
First, you have the mini business plan. In essence, it’s a short business plan (10 pages at least) that has the goal of exploring a potential interest in your venture and stands as a starting point for a much larger business plan.
Next, you have the working business plan. The working business plan is the complete version of the mini plan. The working business plan outlines how you’re going to build the business in a detailed manner.
Then, you got to have a presentation business plan. This is a complete business plan is intended for potential investors in your business and bankers. The presentation business plan requires elegance and the right business terminology. The public and the investors are the main audiences of this business plan.
Business model development
When you decide what kind of business plan you need in your business development stage, it is crucial to comprehend what elements a successful business plan has.
You need to have a business model first. The business needs to be thoroughly described. The market needs to be well researched. Consequently, your products need to be outlined and you need to have the organizational and management structure in place.
The market research report and analysis is the second element that your need to have in your business plan. If there’s no market, the will be no business for it. Period. Your business needs to be situated in a specific market. Therefore, it is of massive importance to understand the demographics, customer needs, purchasing behaviors and as well as the competition in the marketplace.
Financial projections and analysis are the third major component of a successful business plan. This includes cash flows and their projections, capital that you plan to spend and balance sheets.
Getting business intelligence
If you don’t have the business intelligence or the education to create your business plan for your small business, it is always a wise choice to obtain help from a business consulting company. In turn, you will get financial and business expertise that you need to create a successful business plan for small business and you will convince investors to back you up with a capital.
The sections above are just a general description of what your business plan for your small business needs to have. These sections break down further into more specific parts (Company Description, Market Analysis, Products & Services, Marketing Plan, and Funding) of the business plan that we will address in our next article.
Having a business plan is important because it will help you set realistic goals for your startup. It will serve as an excellent tool to secure investor funding. It will also serve to establish the financial forecasts for your business and ROI (Return on Investment). To be a strong candidate for receiving investment funds, you must prove that you thoroughly understand every aspect of your business. And to prove that you know how to create profit from it.
As a first-time entrepreneur that has a great new idea, we advise you to not jump into business waters without a plan. There are important questions that need to answer first before you even start the company. The BizzBee team of experts is here for you to help you. Together we can answer all those questions and guide you through the process of successful business planning.