2. Business Plan Development
Business plans for small business are an essential element of the
start-up process. Not only does a business plan assist you with
funding, it compels you to analyze, plan & come to terms with the
reality of running a business. Your business plan demands that you
examine your preconceived ideas about the value of your product
or service and investigate ways to better market and increase
demand.
Most business plans follow a similar structure. Business plans are
formal documents that are seen by a variety of people. Bank and
loan officers, attorneys, and other professionals expect information
in a business plan to be presented in a consistent manner.
3. Business Plan Development
Business plans for small business contain the following sections:
• Cover Page: consists of the business name, owner’s name, and
contact information.
• Table of Contents: section is required to quickly find each section.
• Executive Summary: is the first and most widely read section of
the plan. The Executive Summary includes a business description,
highlights the main points of the business plan, and gives a concise
explanation of planned strategies. It should be at least one page
and no more than three.
4. Business Plan Development
• Business Description: outlines current and future industry
prospects. A description of the proposed business and how it fits
into the current market follows. Also included is the business type,
whether it is a wholesale, retail, or service-oriented business, and
the legal structure. All business principals are identified, as are
descriptions of individual skills and qualifications. Business
strategies are outlined that indicate how the business will
successfully compete.
5. Business Plan Development
• Marketing Analysis: analyzes the demand for the business product
or service and explains how the business principals will take
advantage of these opportunities. Markets are defined, competitors
analyzed, marketing research is cited, and the marketing plan for
capturing a share of the market is outlined.
• Operation Management: include an outline of the day-to-day
operations, defining the number of required staff, and systems used
for conducting business. Benefits of the systems and set-up
requirements are explained.
6. Business Plan Development
• Personnel: this section defines the projected number of
employees, the required skills for each position, and the number of
work hours projected for each, both initially and as the business
grows.
• Competitor Analysis: is a thoroughly researched record of current
competitors in the marketplace. It includes an outline of competitor
strengths and weaknesses, as well as a plan to compete effectively.
Location in relation to competitors, pricing comparisons, product
desirability, unique services, and market advantages of the
proposed business are outlined.
7. Business Plan Development
• Financial Data: this section outlines loan terms, funding, list of
assets, balance sheets, income projections, profit and loss
statements, breakeven analysis, detailed first year financial analysis
divided 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 plans
to pay expenses from month to month and defines the money
source from which the expenses will be paid. All expenditures must
be accounted for.
8. Business Plan Development
• Appendix: data reports and other technical information is placed
in this section. Market analysis numbers, charts, spreadsheets, loan
documents, financial statements, trademarks, patents, and owner
resumes are included.
9. Approaches To Developing A Business Plan
Writing business plans for small business is a way for you to map
your road for planned success. The research you conduct while
preparing your plan is invaluable when it comes to making business
decisions. A well-researched business plan is an essential tool for
starting a business and keeping it on track. Business plans for small
business are not only for start ups, but also are valuable tools to use
when considering expanding your business.
10. Approaches To Developing A Business Plan
As you approach writing a business plan, you have several options
from which to choose. Business plan consultants are available for
hire. These professionals have experience in writing business plans
for small business and are generally knowledgeable about what it
takes to write a compelling document. Software options are
available as well. Most business planning software includes
templates and the necessary sections. The last option is to develop
a business plan by yourself. The ideal choice is the one that works
for you.
11. Approaches To Developing A Business Plan
Most business owners choose to write their own business plan. A
low cost option, writing your own plan gives you an opportunity to
learn about your industry and business. As you conduct your
marketing and competitor analysis, gather data, analyze, plan
strategies, and assess your business and its potential. Think critically
about your future business operations and develop a plan to
continually improve its revenue & profits.
Writing your own business plan is an ideal way to learn and
cultivate a business mindset. You will also learn a great deal about
yourself. Analyzing, visualizing, and defining strategies prepares
you, not only for starting your business, but also for turning it into a
success and helping it grow over time.
12. Contact Information
Jeff Goldblatt
VR Business Brokers
321 N. Central Expressway
Suite 350
McKinney, TX 75070
Tel: 214-733-8282, ext. 23
E-Mail: jeffg@vrmckinney.com
www.vrmckinney.com
