A plan for your small business is useful if you want to focus yourself and get an overall picture of what you have to do in order to build your enterprise. On top of that, a good business plan is an absolute must if you want to convince institutions or individuals to loan money or invest in your business. One way to organize your business plan is to compose it like an informative news article, explaining the "who," "what," "when," "why, and "how" of your business.
Who are you?
Write about your background and previous experience in your field. Tell about your notable accomplishments, and about your partners and staff. If your company has been in business for some time now, then write about your "track record." Explain what your company has already accomplished and give an idea of how it stands in relation to competitors in your particular field of business.
What are Your Products or Services?
What are you producing or what are you going to produce? What are your products or services? What kind of revenue will these activities be bringing in or what is the expected range of revenue once the products are launched? Answer these questions giving a complete picture of the principal activity that you are engaged in or will be engaged in during the timeline of this business plan.
When Will things Happen?
If you have a new start-up business, this section of the plan will allow you to explain the steps that are needed to set-up your business and make it fully operational. How much time do you need? When will the business be up and running? If you are have an already existing business, it is useful to place somewhere in the plan a list of targets that you want to achieve and give approximate dates as to when these targets can be reached.
Where is Your Business?
Where are you located? Do you work at home or do you have business premises? If you have a business location such as a store or factory, then explain about the size and capacity of this establishment. What is the business climate like in your area? Are there significant competitors and what are your prospects of competing in this market? Answer these questions as best you can and give yourself and would-be investors a clear picture of where your business is situated geographically and with relation to your overall market.
Why are you in Business?
Explain why your particular enterprise, product or service is needed. What can your add to the already existing area of business that your are entering? What need are you going to fill? The answers to these questions are particularly important for investors looking for opportunities in emerging businesses and emerging markets.
Your sales and marketing plan should be outlined in this section. Explain how you intend to establish your product or service and what steps you will take to create or expand your customer base. How will you finance the start-up and/or expansion of your business? Explain the source of your funds whether you have existing loans or liabilities. How much money do you need to raise in order to get realize your overall plan for the launching or expansion of your business? Explain how you are going to translate your business idea into a living reality.
Take a look at your planned business or your existing business from the perspective that has been outlined in this article, and write a concise business plan. It will help to bring clarity to your operations and convince investors and lenders to participate in your enterprise.
"When I started out in business, I spent a great deal of time researching every detail that might be pertinent to the deal I was interested in making. I still do the same today. People often comment on how quickly I operate, but the reason I can move quickly is that I’ve done the background work first, which no one usually sees. I prepare myself thoroughly, and then when it is time to move ahead, I am ready to sprint." Donald Trump Quote
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