Why You Should Create A Small Business Plan

Written By Kaisa Kokkonen Published March 27th, 2010

A business plan is an essential part to the success of many small businesses. As a business owner/investor you should updated and reflect the current status of a business as it grows. Many small business owners create a 3-year business plan.

There are many reasons why you should have an updated business plan handy anytime. I listed just a few obvious ones.

Why a Small Business Plan Is Important?

A good plan helps a small business owner develop her business by identifying details needed to run it successfully. You are forced to spell out the product or service offering, the market and competition. Your a business plan identifies your business goals, marketing strategies and operational plans. I guess that is why many people say it acts as a blueprint for building a successful business. And let me tell you, a small business plan is absolutely essential when you present to venture capitalists.

Typical Features of a Small Business Plan

The following section titles and descriptive details are generally included:

1. Cover Page: include name, brand identity, version number and date that plan was prepared.
2. Table of Contents.
3. Executive Summary: include succinct snapshot of small business such as target market size, financial goals and funding (if needed).
4. Company summary: include company specific information such as goals and missions.
5. Market analysis: include industry analysis, target market and competition.
6. Product or service description: include product or service that will be offered to customers.
7. Marketing and sales plans: elaborate on marketing and sales strategy.
8. Operations and management plans: include inventory and fulfillment plans.
9. Financial plans: include projections and historical data.
10. Appendix: include any supporting documentation.

Benefits of Having a Current Small Business Plan

Your small business is far more prepared to adjust one’s strategy quickly to adjust to changes in the market or the changing competition. Your business can modify the operational or marketing strategy quickly if you areable to review and rewrite business plan, coupled with the new research and analysis.

How Long Should My Small Business Plan Be?

Most people say that a well-developed small business plan is about 20 to 30 pages. This assumes regular formatting. However, don’t get stuck on “it must be that long” – sometimes short and sweet works well if it includes all the ingredients.

Keep in Mind

If business writing is not your cup of tea, you may consider hiring a professional with experience in developing small business plans or get some advice of a mentor in your industry. A small business plan should be concise and well written. Obviously if you are seeking funding for your business – and must present your business idea to banks and venture capitalists – the quality becomes crucial.

Roger Due

Investing in Your Destiny® & Coaching Program - Wealth Building Summit Dallas, Texas

My name is Roger Due and I am from Albuquerque, New Mexico and I am the owner of the Monsano software company. This has been an absolutely fantastic conference. This is the best I have ever been to.