08 Sep, 2017

Small Business Plans

It is important to plan in advance before you start you small business. Many potential business entrepreneurs come up with a business plan to ensure the success of their business. Other entrepreneurs only come up with a business plan when they require borrowing some business funds from the financial institutions. However, you should note that small business plans are more important than you may think. They are not meant for the banks or other lenders to glance through whenever you need some form of financing. Small business plans are priceless documents that act as route maps for starting and operating the business. Make a thorough research on the various business aspects that can enable you to turn it into a success story. With small business plans, you business entrepreneurs are able to identify their strengths, weaknesses, opportunities, and threats (SWOT). The plan is the ideal tool that can help you to make knowledgeable decisions concerning your business venture before you embark on launching your business. Generally, small business plans consists of 7 main sections. These are: The executive summary This should fill one or two pages of your plan. An executive summary provides the model of your business, the main objectives, organization and management structure, then kind of products or services that you offer, the marketing programs, the clients, and the brief explanation of the financial estimates.; Business overview This includes information about the small business history or record, mission and vision, and business ownership composition. Products or services Expound on the kind of products or services that you business provides. Here you should also include the benefits, of obtaining those particular products or services. Make sure that you indicate your competitive advantage. An overview of the entire industry In expressing the overview of the entire industry, make sure that you indicate the importance of your small business venture to your particular industry. Make sure that you mention the features of your business that contribute to the growth of that industry. Marketing program or strategy Under the marketing strategy section, make sure that you mention how you want to increase your sales. Explain your pricing and advertising strategies. Operation plan An operation plan explains the day-to-day operations of the business. Financial plan The financial plan is one of the most important aspects of small business plans. It shows the previous year’s financial statements. They act as a road map to ensure that the business progresses financially.