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Home Page > Business > Small Business > The Purpose Of A Small Business Plan

The Purpose Of A Small Business Plan

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Posted: Jan 05, 2010 |Comments: 0
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A small business plan is a document that serves two purposes. The first one is that, it acts as a reference document for the business owner to keep track of the operations of his enterprise. This is because, as time progresses, the owner is able to counter check the achievements of the enterprise against the objectives that were initially indicated in the business plan. He is therefore able to determine whether he is on the right track or what amendments need to be made.

The second purpose of a small business plan is that, it can be used as a tool through which a business owner can seek for funds from donors. A well presented document that captures both long and short term goals normally has high prospects of fetching good funds. The details of what the business is all about and what it hopes to achieve should be captured in detail. The document also contains other contents which may be classified into four major parts.

The first one is the description of the business, which captures the name, location, contact details and a brief summary of the field in which the business operates and how it carries out its operations. The other section is the one that captures the marketing plan. This shows how the business links its clientele to the services or goods that the target market is looking for. In addition, the marketing plan also describes how competitors are handled.

The other section captures the financial management plan, and the most important bit in this section is the budget. The budget definitely captures the income and the expenditure of the same. This is then followed by a brief justification of the expenditure. The fourth bit is the management plan, which shows who is answerable to whom in terms of power and authority.

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Peter Gitundu Creates Interesting And Thought Provoking Content on Small Business. For More Information, Read More Of His Articles Here Small Business Plan

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Writing your Working Business Plan


Writing your Working Business Plan


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Home Page > Business > Writing your Working Business Plan

Writing your Working Business Plan

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Posted: Oct 05, 2006 |Comments: 0
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Many women are so confused by the words – “Business Plan”. What is it? Who do I show it to? Do I really need it? What is it really going to do for me?


A business plan is a written blueprint for your business. It describes a summary of what your business is about and it’s goals. It also outlines how your business will function. The term “business plan” was first developed by bankers who wanted a detailed report of how a business would result in profits before they would make a decision on lending money. Today, no business banker will even entertain a business loan application without a business plan.


In a nutshell, the answer is yes, you really do need a business plan if you really want to build a solid foundation under your home-based business.


I guess the reason so many women procrastinate in doing a business plan is because they think they have to come up with some imaginary figures and statistics about their business which is of course very scary for anyone. This type of plan is known as an Executive Business Plan. This plan is shown to banks, SBA and other lenders who you may apply to for a substantial loan. Usually, this type of business plan must show a 3-5 year projection of how much money your business would make if they should lend you a specific sum of money. Although you will need this type of business plan should you wish to expand your business, the most important thing for you to know now is where you will be in the next 3,6,9 and 12 months.

One of the best form of business plans to start out with is the “Working Business Plan”. This plan answers the 5 “W’s” – Who, What, Where, When and Why.


There is no pre-required length that a Working Business Plan should be. Just remember that you aren’t writing to impress, you are writing to address the important issues of starting your business. This plan is just for your planning purposes and can be expanded later on into a full executive plan.

The following outline will help you in processing your thoughts and writing your Working Business Plan.


1. Mission Statement – What is the goal of your business. What purpose does it serve.


2. Objective – What will the outcome be for your business as a result of your mission. (ex: K.G. enterprises will gross over $50,000 it’s first year with a 5% error margin on its documents).


3. Management – Who will run the business and what qualifications does the person have. What additional skills or resources are needed? What are the names of others that might be able to serve as mentors or help you in grooming your business for success?


4. Service/Product – What products or services are being offered? How will they be produced. If you are selling a product, how much of the product will you need in stock? Do you have the start-up capital needed to purchase the produce? If no, how will you raise the capital needed?


5. Customers – Who are your customers? What area are they in? Is this a service or product they will want to buy? Do a typical profile of a repeat customer.

6. Competition – Who are your competitors? Where are they located? What are their prices? What services or products do they sell? How could you do better?


7. Marketing – How will you market your business? How much money will you need to market your business? How is your competition marketing their business? Do you need business cards, brochure, stationery, fliers etc.?


8. Office Set-up – What are your daily office procedures, what will you do each day that will result in the sale of your service or product? What bookkeeping system will you use and how often will you input your information in the system? Do you need a bookkeeper? What supplies do you need? What type of furniture do you need? What office equipment will you need? Where will your office be?


9. Finances – HOW MUCH MONEY WILL YOU NEED FOR THE FOLLOWING?


$ Your Income

$ Advertising/Promotion

$ Bank Fees

$ Business Insurance

$ Business Lease/Rent

$ Internet (include website, hosting etc.)

$ Supplies

$ Postage

$ Printing

$ Telephone

$ Training

$ Utilities

$ Marketing/Advertising

$ Equipment

$ Furniture


10. Networking – Who needs to know about your new venture and why? What contacts do you need to have? Why do you need to know them? What can they help you with?


Contact Management


Establish a good contact management system for yourself. Today, keeping a list of contacts on paper is not efficient. A good contact management software will be needed. If you currently use MS Office, you should have MS Outlook already installed and it will serve the purpose nicely. Other popular contact management software are ACT and Goldmine. Regardless of what contact system you have you must be willing to update your system at least twice per week.


Evaluate how you will manage you contact system. Make sure to schedule this in your planner or palm.


Establish a good contact management system for yourself. Today, keeping a list of contacts on paper is not efficient. A good contact management software will be needed. If you currently use MS Office, you should have MS Outlook already installed and it will serve the purpose nicely. Other popular contact management software are ACT and Goldmine. Regardless of what contact system you have you must be willing to update your system at least twice per week. Evaluate how you will manage you contact system. Make sure to schedule this in your planner or palm.


11. Sales The number of clients you service or products you sale will give you a true picture as to whether or not you are having success with your business. But first, you must have a measurable sales goal in achieving this success. Start by evaluating where you want to be in sales for the first 3 months, 6, months, 9 months or one year. By doing this you will be able to re-evaluate your business plan every three months and determine if you need to improve in marketing etc.


12. Starting Date – Set a starting date for when you want to begin your business or put into place this working business plan. Make sure you have printed material available for all services or products offered. Also evaluate and follow-up with yourself daily for the first month to ensure that you are following your own plan. After 30 days, follow-up on a weekly basis and then monthly from that point on.


13. Remember, no plan will work unless you are willing to put it into action!


About the Author:


Trina Newby is a Business Consultant, CEO & Founder of Women About Biz, a membership organization that provides small business resources, tools and networking opportunities for women.

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What are the keys to building a scalable business plan ?
I’m just about to complete my business plan. What steps should I take next? Incorporate, find seed money…?
Is it viable and ethical to present my business plan to 3 o 4 brokers or VC at the same time, without having to tell any of them of my plans to get better results by having control of all offers?

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Shristy Chandranl
Businessl
Jan 20, 2011

Vintage Hats – Timeless Elegance

Even in this modern day fashion, vintage hats are still in vogue and popular to women of all ages. In the past, hats are a must worn accessory for women as it conveys marital status, status in society and wealth. It is also a useful tool to protect women’s complexion from the sun and wind, while at the same time concealing parts of the face for the extra touch of anonymity and elegance resulting to an intriguing classical look.

By:
Paul Armstrongl
Businessl
Jan 20, 2011

Writing your Working Business Plan

Working Business Plans aren’t written to impress, they are written to address the important issues of starting your small business. The Working Business plan is for your planning purposes only and can be expanded later on into a full executive business plan. The following outline will help you in processing your thoughts and writing your Working Business Plan.

By:
Trina Newbyl
Businessl
Oct 05, 2006
lViews: 222

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Trina Newby is President and Founder of Women About Biz, a powerful and effective membership-based network for Businesswomen. Let us show you how to grow your business.

Posted in Small Biz ResourcesComments (0)

SMALL BUSINESS: Plan Ahead to Sell Your Business


Small business owners often think that their business is worth more than the value placed on it by the market place. I find it interesting that many owners think of selling their business as their number one retirement strategy. However, they don’t treat it as an investment. Owners tend not to think about what they need to do to maximize their return on their investment in the business. And just …

View full post on small business – Yahoo! News Search Results

Posted in NewsComments (0)