A business plan is an essential document for every business, no matter the size. Many business owners embark on writing a plan hoping to find answers to their problems and see a short-cut to their desired end result. But the process of creating one can be overwhelming. No wonder that only 15% of businesses that begin the process go on to finish it.
Starting a business can be a lot of fun, but it can also be a lot of hard work and stressful decision making. A small business plan is an important tool that helps to mark the beginning or next steps in your venture. This guide helps best business plan template, types of business plan your decisions and keep you on course.
How do you write a business plan for a small business
A business plan is a formal document that describes the nature of an organization and its future goals. It normally includes an executive summary, a description of the company, marketing and sales strategies, costs and funding requirements. A business plan may also include other sections as appropriate to the needs of the company or corporation.
A good business plan is comprehensive and covers all aspects of an organization’s operations and success. It should be clear, concise and complete. Well-written plans are essential for any successful business venture to succeed.
A well-written business plan can help you get funding from lenders or investors, secure partnerships with other companies or organizations, attract employees, obtain customers and much more.
There are many types of business plans. The template you choose will depend on the type of business you are starting, your financial situation and the type of capital you need.
Types of Business Plans
There are two basic types of business plans:
A comprehensive plan is a detailed document that explains how you will start and operate your business. It includes an executive summary, company description, products and services, market analysis and competition, financial statements and marketing plan.
A concise plan is a shorter version of a comprehensive business plan. It contains the same components as a comprehensive plan but focuses on only the most important aspects of your business.
Comprehensive business plans usually take more time to develop than concise plans because they require more research and in-depth analysis. This extra effort is worthwhile because comprehensive plans give you more options for raising capital or attracting investors at some point in the future.
Business Plan Templates
The following are some examples:
Small Business Start-Up Plan – a basic plan that includes an executive summary, company description and market analysis. It also includes financial statements or projections.
Business Plan Pro Forma – a projection of future performance showing projected sales volume and profit for a five-year period.
Sole Proprietorship Business Plan – for businesses owned by one individual with no employees other than self.
Entrepreneurial Business Plan – for any business that is owned by one individual who has employees working for him/her to produce a product or service for sale to customers in the marketplace.
The following guide will help you write a successful business plan for your small business:
First of all, let’s get one thing straight: A business plan is not a business. It’s a document that describes the nature of a new venture and how it will operate.
A business plan is essentially an outline for your company. It covers everything from what you’ll sell to how you’ll sell it, from where you’ll be located to who will work there. You’ll need one if you’re looking for investors, but even if you’re funding your own business, it’s a good idea to write out everything in advance so that you know what direction you want to take once your doors open.
You don’t have to start from scratch; there are plenty of resources available that can help guide you through the process. But if you want to write your own plan, here are some tips:
A business plan is a written document that describes the goals, strategies and actions necessary for you to achieve your vision for your company.
How to write a business plan step by step
The most common type of business plan is the one you write when you’re starting a new company. This is called the start-up plan. The other main type of business plan is the expansion plan, which is used when your company has been in operation for some time and you want to grow it further.
The first step to writing a successful business plan is knowing what information needs to be included. The content of a start-up plan will obviously differ from that of an expansion plan, but there are some basic elements that apply to both. These include:
Step 1: Executive Summary
This section provides an overview of your company’s products or services and its current financial status. It should be written in a manner that will attract investors or lenders and give them an idea of how much money you need to expand your business. An executive summary should be no longer than one page long and should include:
A description of your business’s products or services;
Information about your current financial status (income statement);
An explanation as to why you need funding (business objectives); and
A brief summary of any risks associated with the project (risks analysis).
Business plans are used to:
raise capital from investors
show banks that you have a good idea and can be trusted with their money
give you something to show potential customers so they know what you do and how much it costs
help you set up your business correctly from the start (i.e., choosing an appropriate structure, keeping records properly)
Business plans are essential for any small business, but they’re not always easy to write. Even with the best intentions, writing a business plan can feel like a daunting task.
Before you begin writing your own business plan, keep in mind that there are many different types of business plans. Some are very short and just provide basic information about your company. Other types of plans provide more in-depth information about your company’s future goals and strategies.
The following steps will help you write a basic business plan for your small business:
Step 1: Choose Your Format
There are several different ways to format your business plan. You can choose from these options:
Executive summary
Vision and mission statement
Company description (general information)
Products or services description (specific information)
Marketing strategies (sales, advertising, promotion)
Operations (production costs, staffing needs)
Financial data (costs, revenue projections)
The first step to writing a business plan is to decide what type of business you want to start, and what your goals are for the company.
Once you’ve decided on your type of business, it’s time to write out your business plan. This should include all aspects of running your new company, including:
1. Vision and Mission Statement – What do you want this company to be? What is its purpose? What do you want it to achieve? Write down your vision for this company, and then make sure that this is reflected throughout the rest of your plan.
2. Executive Summary – The executive summary is often called “the executive summary” because it should be written in an executive style (not technical) so that non-technical readers can understand it easily. It should summarize all important points from the rest of the plan (usually 1-2 pages), plus highlight any unique features or benefits of your product or service that sets it apart from competitors’ offerings. This section will also give readers an idea about how much money they stand to earn if they invest in this venture by reading through the financial projections (next section).
3. Industry Analysis and Market Trends – Describe how