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3 How To Write A Business Plan For A Small Business With Easy

doylc.com - How To Write A Business Plan For A Small Business - A business plan refers to a written document that comprehensively outlines what your company is, where it is going, and how it will get there. The business plan concretely describes your company's financial goals and how it will position itself to achieve those goals in the context of the current market environment. In addition, the business plan is an indispensable tool for attracting business capital. This article describes step by step how to create one.

  • How to preparing to write business plan

How to Write a Business Plan for a Small Business: 14 Steps

Determine the type of business plan you will use. While all business plans share the common goal of describing a company's purpose and structure, analyzing the market, and making cash flow projections, the types of plans differ. There are three main types.

The mini plan. This is a shorter plan (likely 10 pages or less) and is useful for identifying potential interest in your business, exploring a concept further, or as a starting point for a full plan. This is a great place to start.

The work plan. This can be considered the complete version of the mini plan and its main purpose is to outline exactly how the company is to be set up and run without emphasis on looks. This is the plan that the business owner would regularly refer to as the company moves closer to its goals.

The presentation plan. The presentation plan is intended for people other than those who own and operate the business. This can be potential investors or bankers. It's essentially the work plan, but with an emphasis on elegant, marketable presentation and appropriate business language and terminology. While the work plan is prepared by the owner for reference, the presentation must be written with investors, bankers and the public in mind.

How to Write a Business Plan for a Small Business: 14 Steps

Understand the basic structure of the business plan. Whether you choose a mini-plan or a comprehensive work plan, it's important to understand the basic elements of a business plan.

The business concept is the first comprehensive element of a business plan. The focus is on the description of your company, its market, its products and its organizational structure and leadership.

Market analysis is the second major element of a business plan. Your business will operate in a specific market and it is important to understand customer demographics, preferences, needs, purchasing behavior and competition.

The financial analysis is the third component of the business plan. If your business is new, this includes projected cash flows, capital expenditures, and the balance sheet. It will also include forecasts of when the business will break even.

How to Write a Business Plan for a Small Business: 14 Steps

Get appropriate help. If you don't have any business or financial training, it's never a bad idea to enlist the help of an accountant to assist you with the financial analysis of the plan.

The sections above are the rough parts of the business plan. These sections are in turn broken down into the following seven sections, which we will focus on writing next in order: Company Description, Market Analysis, Organizational Structure and Management, Products and Services, Marketing and Sales, and Funding Application.

  • Ho to write a business plan

How to Write a Business Plan for a Small Business: 14 Steps

Format your document correctly. Format section titles in Roman order. For example I, II, III and so on.

While the first section is technically known as "Executive Summary" (giving an official overview of your business), it is usually written last, as all the information from the business plan is required to create it.

How to Write a Business Plan for a Small Business: 14 Steps

Write your company description as the first section. To do this, describe your company and identify the market requirements for your product or service. Briefly describe your most important customers and how you want to be successful.

For example, if your business is a small coffee shop, your description might go something like this: "Joe's Cafe is a small, downtown eatery that focuses on serving premium brewed coffee and freshly baked pastries in Serving a relaxed, modern environment, Joe's Coffee is located one block from the local university and aims to provide students, professors and employees with a comfortable downtown environment in which to study, socialize or easy to relax between lectures or meetings Location, superior products and outstanding customer service, Joe's coffee will set itself apart from its competitors."

How to Write a Business Plan for a Small Business: 14 Steps

Write your market analysis. The purpose of this section is to explore and demonstrate knowledge of the market in which your company operates.

Add information about your target market. You should be able to answer questions like: Who is your target market? What are their needs and preferences? How old are you and where are you located?

Be sure to include a competitive analysis that includes research and information on immediate competitors. List the strengths and weaknesses of your main competitors and the potential impact on your business. This section is extremely important as it describes how your company gains market share by exploiting the weaknesses of the competition.

How to Write a Business Plan for a Small Business: 14 Steps

Describe the organizational structure and management of your company. This section of the business plan focuses on key personnel. Provide details of the business owners and their management team.

Talk about your team's expertise and how decisions are made. If the owners and managers have extensive industry experience or a track record of success, highlight that.

If you have an organizational chart, attach it.

How to Write a Business Plan for a Small Business: 14 Steps

Describe your product or service. What do you sell? What's so great about your product or service? How will customers benefit? How is it better than your competitors' products or services?

Answer all questions about the life cycle of your product. Do you currently have or plan to develop a prototype or apply for a patent or copyright? Write down all planned activities.

For example, if you were writing a coffee shop plan, you would include a detailed menu outlining all of your products. Before you write the menu, include a brief summary of why your particular menu makes your business different. For example, you can say, "Our coffee shop offers five different types of beverages, including coffee, tea, smoothies, sodas, and hot chocolate. A variety of product offerings not currently offered by our main competitors".

How to Write a Business Plan for a Small Business: 14 Steps

Write your marketing and sales strategy. In this section, explain how you intend to penetrate the market, manage growth, communicate with customers, and sell your product or service.

Be clear when defining your sales strategy. Will you be using sales representatives, billboard advertising, brochure distribution, social media marketing, or all together?

How to Write a Business Plan for a Small Business: 14 Steps

Submit a funding request. If you use your business plan to secure funding, include a funding application. Explain how much money you need to start and run your small business. Provide a detailed summary of how the seed capital will be used. Provide a timeline for your funding request.

Gather financial reports to support your funding application. In some cases, to complete this step correctly, it may be necessary to hire an accountant, lawyer or other professional.

Financial reports should include all historical (if you're an existing company) or forecast financial data, including forecasts, balance sheets, cash flow statements, income statements, and expenditure budgets. Enter monthly and quarterly statements for a full year. Annual accounts every year thereafter. These documents will be included in the appendix of your business plan.

Include projected cash flows for at least 6 years or until stable growth rates are reached and, if possible, a valuation calculation based on discounted cash flows.

How to Write a Business Plan for a Small Business: 14 Steps

Write the summary. Your executive summary serves as an introduction to your business plan. It contains the mission statement of your company and provides readers with an overview of your product or service, your target market, and your goals and objectives. Remember to place this section at the beginning of your document.

Existing companies should include historical information about the company. When was the company first conceived? What are some notable growth benchmarks?

Startups will focus more on industry analysis and their funding goal. Mention the company's corporate structure, its funding needs, and whether you will be providing equity to investors.

Existing companies and startups should highlight any major achievements, contracts, current or potential customers and summarize future plans.

  • Completion of your business plan

How to Write a Business Plan for a Small Business: 14 Steps

Add an attachment. This is the very last section and is intended to provide additional information. Potential investors may wish to review this information before making a decision. The documents you submit here should support claims made in other sections of the business plan.

This should include financial statements, credit reports, business licenses or permits, legal documents and contracts (to demonstrate to investors that revenue projections are backed by actual business relationships) and biographies/resumes for key personnel.

Work out risk factors. There should be a section that clearly outlines the risk factors affecting your organization and mitigation plans. This also shows the reader how well prepared you are for eventualities.

How to Write a Business Plan for a Small Business: 14 Steps

Revise and edit. Check your business plan for spelling and grammatical errors. Do this several times before settling on the final version.

Revise or completely rewrite content to ensure it works from the reader's perspective. This is especially true if you're creating a "presentation plan."

Read your document out loud. This helps you identify when sentences aren't flowing together well, and it also makes grammatical mistakes more obvious.

Make a copy and give it to a trusted friend or colleague for proofreading and feedback. You can go online and print out a non-disclosure agreement (NDA) for them to sign to protect your business idea.

How to Write a Business Plan for a Small Business: 14 Steps

Create a cover sheet. The cover page identifies your document and gives it aesthetics and professionalism. It also helps make your document stand out.

Your cover page should include: The words "Business Plan" in large, bold type, along with your company name, company logo, and contact information. Simplicity is key.

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