Types of Business and Marketing Plans for the Small Business

The type of business plan you require for your small business is largely dictated by its usage and application. Ask yourself, for example, whether you intend to use the business plan primarily to secure a loan or loans for your small business. Maybe you need a business plan as a support document to accompany applications for loans that also doubles up as a key tool for steering and developing your small business, over the years.

 

Are you looking for a business plan simply to present to a partner or investor as an overview of your small business? Or perhaps you are a fore-thinker and want to develop a marketing plan that can grow as you grow.

Business plans and loans can often present a bit of a "Catch-22" situation for the small business entrepreneur. If you are thinking of setting up in business, the chances are that you will require some form of up-front finance in the form of loans to cover your initial set-up costs. And, in order to apply for loans for your small business, you will need to write a business plan to support any applications for loans.

Your final choice of business plan format, length, depth, emphasis and presentation should be tailored to the specific requirements of your small business and its target audience. The following are some examples of different types of business plans:

Summary Business Plan: Used mainly for internal evaluation purposes, this abbreviated type of business plan focuses on key issues such as financing and loans, cash flow, marketing plan and income projection.

Bank Business Plan: A bank business plan must fully address all issues relating to the bank's risk involvement should it authorize any loans, such as your small business' ability to repay those loans.

Potential Investors' Business Plan: The emphasis with this type of business plan is on presentation, detailed financial analysis and the market viability of your small business' product or service.

Working Business Plan: Used primarily as a tool for internal use within your small business, the "no-frills" working business plan concentrates on the practicalities of the day-to-day running of your small business.

Marketing Plan: Used to market the company's products and services in order to attract and retain customers. A marketing plan is also a useful tool for keeping staff informed about where a business is going. The complexity and size of a marketing plan will very much depend upon the nature of the particular business.

Many small businesses do not have a formal marketing plan but most successful small businesses have developed a marketing plan and continue to refine it. The discipline of creating a marketing plan encourages positive consideration of what the business is aiming to achieve and how these goals can be realized.

Many small businesses use SWOT analysis when creating a marketing plan. The acronym SWOT is short for Strengths, Weaknesses, Opportunities and Threats. By listing the factors affecting a business under these four headings, the basis for a marketing plan can be produced.

The first two normally refer to the internal workings of the organization, whereas the second two are more concerned with external factors.

Strengths: What the small business does well. Details here can include experience and commitment of staff, quality of products and services, ability to bring new products to market, increase margins and reduce costs.

Weaknesses: What the small business does poorly. Examples might include high staff turnover, increasing raw material and transport costs, difficulties in reacting to changes in the market place.

Opportunities: Identification of potential new markets or gaps in existing markets. For small businesses, the discovery and development of "niche" markets can often mean the difference between success and failure.

Threats: Threats include competition from other suppliers that can offer lower prices or better quality, changes in the marketplace when competitors introduce new products, and increasing costs of dealing with government bureaucracy as a small business expands.

After collating the results of the SWOT analysis, a business plan can be created. The plan should include information about the nature of the small business, its current position, future plans and how they can be achieved successfully.