Formatting, Contents and Other Business Plan Tips
The writing of a business plan is not optional for most successful businesses, large or small, particularly if loans are required to finance the heavy burden of start-up costs. A business plan, however, should not be viewed merely as a means to securing a bank loan, but also as an essential framework upon which the long-term growth and success of the small business depends.
Every small business start-up should therefore give top priority to writing a business plan before embarking upon the myriad other practicalities of launching a new venture.
Your Business Plan: Getting Started
Every small business start-up should therefore give top priority to writing a business plan before embarking upon the myriad other practicalities of launching a new venture.
Writing a business plan is a relatively straightforward task, provided that you take a step-by-step approach. Once you have completed your business research, extracted the relevant data and gathered together your supporting documentation, you are ready to start writing the business plan for your small business.
What to Include in Each Section of the Business Plan
Although the format of a business plan varies according to its purpose and target audience, all business plans have certain aspects in common:
- Cover Sheet
- Statement of Purpose
- Table of Contents
- Business Overview: includes a description of your small business, product or service, market, competition, marketing strategy, key staff, premises, operating procedures, equipment, business insurance cover, etc.
- Business Finance: includes financial needs, applications for loans, capital, operating budget, balance sheet and break-even analysis, pro-forma cash flow and income projections for your small business, three-year summary, with breakdown by month for the first year and quarterly for the second and third years.
- Supporting Documentation: includes principals' tax returns for last three years, CVs/resumes of all principals, copy of franchise contract (where applicable), copy of lease/purchase agreement for the business premises, copies of any other relevant legal documents, copies of letters of intent from designated suppliers.
Business Plan Presentation
Business plans designed to impress potential investors or persuade the bank to grant your small business a loan or loans should be printed on high quality paper and professionally bound. When securing loans is your prime objective, accuracy of information, layout and presentation of supporting documentation, graphics, photographs, charts and tables are all important factors that may help your small business secure those all-important loans.
As with other types of business plans, the business plan destined for internal use only should also be edited for accuracy, clearly laid out and easy to navigate. This type of business plan, however, can be printed on a budget, as eye-catching presentation is not so important.
As with other types of business plans, the business plan destined for internal use only should also be edited for accuracy, clearly laid out and easy to navigate. This type of business plan, however, can be printed on a budget, as eye-catching presentation is not so important.
Ten Tips for Winning Business Plans for Small Businesses
Give your small business a head start with the following tips for better business plans:
Tip 1. Take a look at some examples of existing business plans in your area of the market, before finally deciding on the most effective format for your specific business plans.
Tip 2. Before writing the actual content of business plans, decide whether you need to show your business plan to your bank, potential investors, partners or other financial providers. Business plans for small businesses should always address the concerns of their particular target audiences. Banks, for instance, want to see documentary evidence that small businesses will not default on their loan payments.
Tip 3. Small businesses that lack the time, skills or manpower to write their own business plans can use the services of professional providers of business plans. Alternatively, there are a number of custom software packages available, offering templates for business plans to suit most types of small businesses, as well as step-by-step guides for writing business plans.
Tip 4. At the research, information and data collection stage of writing business plans for small businesses, try to draw on as many different sources as possible, including personal observations, field research of the prospective market sector, analysis of competitors, interviews with suppliers, published information from libraries and government bodies and specialist Internet-based data collection and market analyses services.
Tip 5. Small businesses should be encouraged to develop good working relationships with their accountants and financial advisors, who may also be prepared to act as mentors during the process of compiling business plans. A professional is worth its weight in gold, particularly in the early stages of setting up small businesses and writing business plans.
Tip 6. Potential owners of small businesses must always be realistic in their business plans. Total honesty from the outset, when writing business plans, about possible risks and obstacles is vital if small businesses hope to thrive, long term.
Tip 7. Small businesses writing their own business plans are advised to use professional proofreaders to "polish," correct grammar, spelling and syntax errors and check business plans for inconsistencies. Remember, clumsily written business plans reflect badly upon their originators and may even question the credibility of small businesses themselves.
Tip 8. Create PowerPoint versions of business plans. Who knows when those highly coveted investors are about to walk through the door! Chances are that they'll be too busy to read your business plans; PowerPoint presentations of business plans may seem more appealing.
Tip 9. Once compiled, business plans should be revised and used to their full potential – for communication, management, and planning purposes.
Tip 10. Make business plans accessible to all employees, not simply to key management personnel. Business plans that are viewed as "living" documents by all employees are more likely to engender a sense of commitment to the objectives of your small business, as detailed in your business plans.
Tip 1. Take a look at some examples of existing business plans in your area of the market, before finally deciding on the most effective format for your specific business plans.
Tip 2. Before writing the actual content of business plans, decide whether you need to show your business plan to your bank, potential investors, partners or other financial providers. Business plans for small businesses should always address the concerns of their particular target audiences. Banks, for instance, want to see documentary evidence that small businesses will not default on their loan payments.
Tip 3. Small businesses that lack the time, skills or manpower to write their own business plans can use the services of professional providers of business plans. Alternatively, there are a number of custom software packages available, offering templates for business plans to suit most types of small businesses, as well as step-by-step guides for writing business plans.
Tip 4. At the research, information and data collection stage of writing business plans for small businesses, try to draw on as many different sources as possible, including personal observations, field research of the prospective market sector, analysis of competitors, interviews with suppliers, published information from libraries and government bodies and specialist Internet-based data collection and market analyses services.
Tip 5. Small businesses should be encouraged to develop good working relationships with their accountants and financial advisors, who may also be prepared to act as mentors during the process of compiling business plans. A professional is worth its weight in gold, particularly in the early stages of setting up small businesses and writing business plans.
Tip 6. Potential owners of small businesses must always be realistic in their business plans. Total honesty from the outset, when writing business plans, about possible risks and obstacles is vital if small businesses hope to thrive, long term.
Tip 7. Small businesses writing their own business plans are advised to use professional proofreaders to "polish," correct grammar, spelling and syntax errors and check business plans for inconsistencies. Remember, clumsily written business plans reflect badly upon their originators and may even question the credibility of small businesses themselves.
Tip 8. Create PowerPoint versions of business plans. Who knows when those highly coveted investors are about to walk through the door! Chances are that they'll be too busy to read your business plans; PowerPoint presentations of business plans may seem more appealing.
Tip 9. Once compiled, business plans should be revised and used to their full potential – for communication, management, and planning purposes.
Tip 10. Make business plans accessible to all employees, not simply to key management personnel. Business plans that are viewed as "living" documents by all employees are more likely to engender a sense of commitment to the objectives of your small business, as detailed in your business plans.
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