Writing a small business plan

Writing a small business plan can be a very overwhelming task. Whether you are just starting out, need funding or want to watch the overall production of your business, creating a business plan will put you on the road to success.

When writing a small business plan, there are some things to consider before you start.

You must know who it is that will be reading it. If you are planning on getting bank financing then your plan will most likely be 10-15 pages focused on the bank's concern with risk. If you are planning on getting an investor then you are looking at 15-30 pages with an in-depth look at analysis and complete details of facts and figures to support assumptions of the market. A plan with investors presents the upside and downside on the return of investments. The bank plan lessens risk and you have capability to repay the loan.

How long should your small business plan be?

Depending on what you need your plan for, will determine the length. If you are just going to use your plan to manage an on going business then a very short plan is all you will need. If your concept is very simple, then you can express it in very few words. If your plan is a new type of business, then more complex plan is what you will need.If you want your plan to seek millions of dollars in capital to start your business, you will need a lot more convincing and quite a bit more of explaining.

There are many key parts to a business plan.

First, is the business concept, this is where you discuss your business structure, the industry, your product or service and how you plan to make your business successful. Begin with an overview of the industry. By having an understanding of the industry, you will not be embarrassed by asking experts basic questions. Once you have all this information, you'll write in the form of several short paragraphs. Remember, each of these paragraphs is a summary, not a detailed section by section explanation. Use appropriate headings for each paragraph.

Second, once the data has been collected, the process of analysis begins. Look at building a competitive profile, contingency plan and risk assessment.

Third, is who you will be marketing to. This is where you describe and analyze potential customers: who and where they are, and what makes them buy. It is also good to describe the competition and how you tend to beat it.

Fourth, is the financial section. This contains your income and cash flow statement, balance sheet and other ratios. This part may require help from your accountant and a good software program.

Lastly is the summary. When you have written all the points of your business plan, write the summary. Highlight key points discussed and go over loan payback requirements from either the bank or investment returns.

Remember, you only have one try at making a great impression. Make sure your research and information is up to date and accurate. Ask others for feedback. Make certain to edit your plan and then proofread it multiple times. This ensures that all mistakes and improper wording is taken care of. A well-written business plan has been revised and reviewed.

Business planning is not easy, but by following these crucial keys points to writing a small business plan, you will ensure your business has a chance at funding and ultimate success in the future.