Business Plan DevelopmentBusiness plans for small business are an essential element of thestart-up process. Not only does a business plan assist you withfunding, it compels you to analyze, plan & come to terms with thereality of running a business. Your business plan demands that youexamine your preconceived ideas about the value of your productor service and investigate ways to better market and increasedemand.Most business plans follow a similar structure. Business plans areformal documents that are seen by a variety of people. Bank andloan officers, attorneys, and other professionals expect informationin a business plan to be presented in a consistent manner.
Business Plan DevelopmentBusiness plans for small business contain the following sections:• Cover Page: consists of the business name, owner’s name, andcontact information.• Table of Contents: section is required to quickly find each section.• Executive Summary: is the first and most widely read section ofthe plan. The Executive Summary includes a business description,highlights the main points of the business plan, and gives a conciseexplanation of planned strategies. It should be at least one pageand no more than three.
Business Plan Development• Business Description: outlines current and future industryprospects. A description of the proposed business and how it fitsinto the current market follows. Also included is the business type,whether it is a wholesale, retail, or service-oriented business, andthe legal structure. All business principals are identified, as aredescriptions of individual skills and qualifications. Businessstrategies are outlined that indicate how the business willsuccessfully compete.
Business Plan Development• Marketing Analysis: analyzes the demand for the business productor service and explains how the business principals will takeadvantage of these opportunities. Markets are defined, competitorsanalyzed, marketing research is cited, and the marketing plan forcapturing a share of the market is outlined.• Operation Management: include an outline of the day-to-dayoperations, defining the number of required staff, and systems usedfor conducting business. Benefits of the systems and set-uprequirements are explained.
Business Plan Development• Personnel: this section defines the projected number ofemployees, the required skills for each position, and the number ofwork hours projected for each, both initially and as the businessgrows.• Competitor Analysis: is a thoroughly researched record of currentcompetitors in the marketplace. It includes an outline of competitorstrengths and weaknesses, as well as a plan to compete effectively.Location in relation to competitors, pricing comparisons, productdesirability, unique services, and market advantages of theproposed business are outlined.
Business Plan Development• Financial Data: this section outlines loan terms, funding, list ofassets, balance sheets, income projections, profit and lossstatements, breakeven analysis, detailed first year financial analysisdivided into months, a three-year financial summary, and a five-year financial summary.The Cash Flow Statement is included in the Financial Data section.The Cash Flow Statement describes how the business owner plansto pay expenses from month to month and defines the moneysource from which the expenses will be paid. All expenditures mustbe accounted for.
Business Plan Development• Appendix: data reports and other technical information is placedin this section. Market analysis numbers, charts, spreadsheets, loandocuments, financial statements, trademarks, patents, and ownerresumes are included.
Approaches To Developing A Business PlanWriting business plans for small business is a way for you to mapyour road for planned success. The research you conduct whilepreparing your plan is invaluable when it comes to making businessdecisions. A well-researched business plan is an essential tool forstarting a business and keeping it on track. Business plans for smallbusiness are not only for start ups, but also are valuable tools to usewhen considering expanding your business.
Approaches To Developing A Business PlanAs you approach writing a business plan, you have several optionsfrom which to choose. Business plan consultants are available forhire. These professionals have experience in writing business plansfor small business and are generally knowledgeable about what ittakes to write a compelling document. Software options areavailable as well. Most business planning software includestemplates and the necessary sections. The last option is to developa business plan by yourself. The ideal choice is the one that worksfor you.
Approaches To Developing A Business PlanMost business owners choose to write their own business plan. Alow cost option, writing your own plan gives you an opportunity tolearn about your industry and business. As you conduct yourmarketing and competitor analysis, gather data, analyze, planstrategies, and assess your business and its potential. Think criticallyabout your future business operations and develop a plan tocontinually improve its revenue & profits.Writing your own business plan is an ideal way to learn andcultivate a business mindset. You will also learn a great deal aboutyourself. Analyzing, visualizing, and defining strategies preparesyou, not only for starting your business, but also for turning it into asuccess and helping it grow over time.
Contact Information Jeff Goldblatt VR Business Brokers 321 N. Central Expressway Suite 350 McKinney, TX 75070 Tel: 214-733-8282, ext. 23E-Mail: firstname.lastname@example.org www.vrmckinney.com