The
Secret to a Successful
Business Plan
As a small business
owner or future one, you will experience the opportunity to write a
business plan. It is not an evil invention of the financial or
business industry full of hoops to jump through to delay your dreams.
It is a tool to help you evaluate your idea’s potential before you
take to the bank or share it with other potential partners.
A business plan is
the tool to help you see how feasible your idea is and if the local
community or target consumer is ready for you. The great thing about
a business plan is when you reach that stage, you already know a lot
about the idea and it can simply become a way to write down what you
know in an organized fashion. You get to realize the gaps you did
not know about and start to fill them in with new knowledge.
Each plan is a
custom one because no one business is exactly alike. All lady dress
shops are not alike just as jewelry stores are not the same. Your
business will not be the twin of the same concept down the street.
With that in mind, you usually have three choices in writing the
plan: 1) hire someone to do for you, 2) purchase business plan
writing software or 3) write it yourself. It is strongly encouraged,
you write it yourself to have the most knowledge of the plan and
ideas and are better able to answer questions regarding the plan.
There are seven main
sections of a business plan. The executive summary which capsulizes
the plan and is written last is the first section. The second section
is the business description where you talk about the industry, the
company and the products/services to be offered to the target
customer. The third part deals with marketing and how you plan on
reaching the target customer. It is here you will show the need for
the product/service and how many potential customers are in the
market. A customer profile is usually included here also. Your
pricing strategy is discussed along with your sales strategies.
The fourth part is a
study of the competition. Competitive spying is legal as long as you
do not break any laws according to the law books. You need to know
who are your current competitors as well as any potential future ones
who currently have no storefront but could be coming. The fifth
section deals how you plan on managing the business and the
structure. You will also talk about the management team. Every
industry has its own set of risks so you need to address them in the
sixth section.
The final section
deals with financial projections and statements. You may want to
enlist the assistance of a banker, accountant or a business counselor
to help you prepare the necessary statements for this section. They
are a balance sheet, profit and loss and cash flow and three years of
projections.
A lot of research
goes into writing a business plan to help make it a solid document so
a potential funder will consider providing the necessary funds. As a
small business owner, you are not alone in this venture. You have
many resources to help you, bankers, accountants, business advisors
and small business development counselors. All have the ability to
provide assistance to help you move along in the writing.
Your local Small
Business Technology Development Center business counselor is
available to discuss your options and provide many services. All you
need to do is call 573-243-3581 and ask for Richard Proffer.
Funded
in part through a cooperative agreement with the U.S. Small Business
Administration. All opinions, conclusions or recommendations
expressed are those of the author(s) and do not necessarily reflect
the views of the SBA. Programs are extended to the public on a
non-discriminatory basis. Reasonable accommodations for persons with
disabilities will be made if requested at least two week in advance.
Contact Richard Proffer, University of MO Extension, 684 West Jackson
Trail, Jackson, MO 653755 or at 573-243-3581.
