Small business owners are sometimes intimidated by the process of writing a business plan and that is why they would rather not do it. The rationale is their business is small anyway or they are no MBA but just a simple business owner.
Developing a business plan doesn’t necessary have to be a complex task. It does require a conscious effort and research to record an organized plan with a profitable business in mind.
Before writing the business plan, it is important to outline personal qualifications. Accomplishments and past business history, if available, are background indicators on qualifications to operate the business. If the plan is mainly designed to direct business activities and not to generate additional capital, this information can be downplayed.
To write a business plan for small business here are straight forward steps to do. How much detail and effort can be put in will depend on the business owner.
Identify the Business Plan Purpose
An effective business plan is meaningful. It is done for the purpose of business activities by clearly outlining the business goals and objectives, and to generate financing, if needed.
Define the Business
The first plan of the business plan should clearly identify the business and services that goes with it. It should clearly explain what the business is about and its offerings.
Define the Target Market and Industry
The targeted market sector should be defined. A clear idea of the audience helps narrow down marketing efforts. Researches, for example, on geographical location, general census on social, economic and educational aspects, and population coverage can be done online or from local libraries. They serve as salient information for business marketing projection purposes.
Alongside definition of the target market, the business plan should provide information about the industry being operated in.
Know the Competition
In researching the market and industry, it is important to have a feel for competitor’s presence. Their strengths and weaknesses are indicators for possible threats as well as opportunities for the business.
Do the Financial Data
This is the financial plan math. Enough time should be spent to come up with the realistic figures, and not just rushed assembled estimates. Important inclusions include capital information for funding the business, sales projections and expenses, and the estimated earnings.
Package the Small Business Plan
Properly packaging the small business plan is especially significant if the plan will be submitted to investors or to the banks for financing purposes, and therefore, it should prove viable, at the same time, conservative.
Final Insights in Writing a Small Business Plan
The Business Plan Should Be Kept Up to Date. It should be an ongoing process, revised if necessary to reflect changes of the business and/or environment and government regulations. The business plan is not a one off activity never to be referred once done. It is an important guide that steers in achieving the business goals, to make a successful business.
Ask for a Business Planner's Help, if Necessary. A business plan may present some complicated tasks. A business planner or financial specialist can be consulted, if needed, at any time in the process of writing the business plan.
Interested readers may want to check the following articles: Business Ideas from Successful Small Businesses, Succession Planning for Small/Home Business, Business Plan Outline and Guidelines, Business Planning is Important to Small/Home Business and How to Succeed in Business Succession Planning.
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