Small business plan One of the most important tasks to carry out when you are planning to launch a brand new small business, is to take time to prepare a fully functional small business plan.
I thought I would go through a step by step guide to what you need for an effective small business plan. Many people try and start a business without any true expectations for the future other then 'oh this is going to work'. You have to know exactly what "should" happen so that the surprises are less. In most cases surprises in business aren't positive.
This review period should be in keeping with the rates of change that the business encounters around the factors experienced in both its internal and external environments.Given that this is clearly understood, and that any gaps in capability have been identified, the small business plan is written with seven critical components in mind.Determine Where You Are Now.This is simply a list that identifies and spells out where the business currently finds itself in relation to a particular critical issue. An example might be sales and marketing, for instance. The list, in bullet point form, spells out what is being done, at present, in relation to these activities. All critical issues facing the business should be analyzed, in turn.
I am writing this guide in small sections to allow you to follow the plan in your own time. This article will demonstrate the complete overview of what you will need to consider when writing your small business plan.
So what are your opening expenses? Here are some questions you need to answer to find out your estimated dollar amount:How much money does your product or service cost you?,How much money will you charge for your service/product?,How much money do you require to live for two years with no profit coming in from your business (safety precaution)?,How much will it cost for your employees for 2 years?,What are your legal fees?,What are your CPA fees?,How much will getting a physical location cost you (if needed)?
Tasks.Objectives must be broken down into a series of tasks and jobs that need to be completed to ensure that the given objective is met. These tasks must be specific, agreed, realistic, targeted and have accountabilities and responsibilities clearly assigned to them.
Financial: This is a key section and should clearly demonstrate your total costing's, direct expenses, projected stock holding (if applicable), accounting methods, sales tables and your sales targets and company budget controls.Timetable: When writing your business plan, you will need to focus on 'forward planning'. This will encompass you projecting a timetable of development .where do you see your company in 5 years for example.
Once you have all these areas done, you have to know how you are going to promote your business and keep the business coming in. This seems to be the biggest problem most business owners have. You know everything there is to know about your products/services, but you know nothing about marketing. That's expected too. Marketing is an expertise in itself. If you've read much of my blog, you know how I preach about smart marketing. Smart marketing is all about spending your hard earned dollar and getting more then you spent in return. In other words, big return on investment (ROI). Every market will be different and different marketing tactics will work in each of them. You have a huge list of options too. Newspapers, Yellow Pages, Radio, Television Ads,Fliers, postcards, promotion coupons,Referral programs,Internet marketing,Email marketing,Holding seminars and special events,Business to business referral programs
Reporting.All of the objectives and tasks spelled out in a business plan will quite likely have glitches arise as part of the implementation of the plan. Part of a successful business plan roll-out includes keeping a regular, updating reporting mechanism in place, so that potential problems can be addressed and emerging opportunities can be exploited. Therefore, follow-up and reporting must be conducted on a regular basis to ensure the success of the plan.
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I thought I would go through a step by step guide to what you need for an effective small business plan. Many people try and start a business without any true expectations for the future other then 'oh this is going to work'. You have to know exactly what "should" happen so that the surprises are less. In most cases surprises in business aren't positive.
This review period should be in keeping with the rates of change that the business encounters around the factors experienced in both its internal and external environments.Given that this is clearly understood, and that any gaps in capability have been identified, the small business plan is written with seven critical components in mind.Determine Where You Are Now.This is simply a list that identifies and spells out where the business currently finds itself in relation to a particular critical issue. An example might be sales and marketing, for instance. The list, in bullet point form, spells out what is being done, at present, in relation to these activities. All critical issues facing the business should be analyzed, in turn.
I am writing this guide in small sections to allow you to follow the plan in your own time. This article will demonstrate the complete overview of what you will need to consider when writing your small business plan.
So what are your opening expenses? Here are some questions you need to answer to find out your estimated dollar amount:How much money does your product or service cost you?,How much money will you charge for your service/product?,How much money do you require to live for two years with no profit coming in from your business (safety precaution)?,How much will it cost for your employees for 2 years?,What are your legal fees?,What are your CPA fees?,How much will getting a physical location cost you (if needed)?
Tasks.Objectives must be broken down into a series of tasks and jobs that need to be completed to ensure that the given objective is met. These tasks must be specific, agreed, realistic, targeted and have accountabilities and responsibilities clearly assigned to them.
Financial: This is a key section and should clearly demonstrate your total costing's, direct expenses, projected stock holding (if applicable), accounting methods, sales tables and your sales targets and company budget controls.Timetable: When writing your business plan, you will need to focus on 'forward planning'. This will encompass you projecting a timetable of development .where do you see your company in 5 years for example.
Once you have all these areas done, you have to know how you are going to promote your business and keep the business coming in. This seems to be the biggest problem most business owners have. You know everything there is to know about your products/services, but you know nothing about marketing. That's expected too. Marketing is an expertise in itself. If you've read much of my blog, you know how I preach about smart marketing. Smart marketing is all about spending your hard earned dollar and getting more then you spent in return. In other words, big return on investment (ROI). Every market will be different and different marketing tactics will work in each of them. You have a huge list of options too. Newspapers, Yellow Pages, Radio, Television Ads,Fliers, postcards, promotion coupons,Referral programs,Internet marketing,Email marketing,Holding seminars and special events,Business to business referral programs
Reporting.All of the objectives and tasks spelled out in a business plan will quite likely have glitches arise as part of the implementation of the plan. Part of a successful business plan roll-out includes keeping a regular, updating reporting mechanism in place, so that potential problems can be addressed and emerging opportunities can be exploited. Therefore, follow-up and reporting must be conducted on a regular basis to ensure the success of the plan.
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