How to write a business plan for a small business

A business plan is a written description of the future of your business. A document that explains what you are going to do to make your company profitable and how you are going to do it. Normally when a business idea arises you know what resources and capabilities you have to start, and where you want to go in a certain period (usually in 3 or 5 years). But where to start?

A business plan is fundamental to the success of any company. Describe all aspects of your company: what it does, the financing it has or needs, its future plans and its strategy to make everything work.

Your business plan is useful for you and your employees, but it can also be essential to obtain financing, because banks and lenders may want to see you before deciding to finance your business. The general outline of a basic business plan could include the following:

Cover and index: Includes the name of the company, its logo and the owner’s contact information. Also, organize your plan with an index and page numbers.

Executive summary: Provide a brief description of your organization to generate interest in people. Perhaps the best thing to do is wait until you have completed the rest of the business plan to write this section.

Market analysis: Describe your industry, target market and competitors.

Description of the company: Explain how your company will meet the needs of customers and how it will compete with similar companies.

Structure of the organization and management: Mention who does what in the company, who is the owner, profiles of their management team and information about their board of directors, together with relevant previous experience.

Marketing and sales plans: Explain how you plan to market your business and generate sales. It is convenient to investigate your competence when writing this section.

Service or product: Describe your product or service, and any copyright, trademark or patent you have.

Funding requests: Describe the current and planned funding needs for the next five years. Include a budget that indicates how you intend to use the invested capital and any long-term financial strategy.

Financial projections: Include previous and projected income statements, balance sheets and cash flow statements.

Appendix: Attach additional documents, such as tax returns, your resume, research, leases or contracts, letters of recommendation, etc.

Also, remember that good business plan is written in a uniform style. Use very few adjectives and keep in mind that spelling and writing are important. Remember that the sources must be appropriate to the language, structure and that the contents and graphics must be clearly inserted in the text, facilitating the reading of the material.

Sign Up for Our Newsletters

You May Also Like

How to achieve business success through emotional intelligence

Business success and emotional intelligence are two concepts that have always gone…

Tips to create an effective email marketing campaign

Email marketing has become a very valuable tool for blogs and business…

Having a good network of contacts is vital to success: 5 creative ways to network

Having a good network of contacts is vital to the success of…