Have you been strongly considering going into business for yourself? The first step is to draft your small business plan, which will outline your company’s strategies, goals, and operations in detail. It also serves as an outline for investors, bankers, and anyone else involved in your business venture.Seven of the basic, yet important components of a small business plan include the following:
Describe your small business in as much detail as possible. This will include details about your target audience and how you intend on distributing the product or service. Additionally, you will also want to include the type of business you will be registered as (corporation, LLC, sole proprietorship, etc.)
If you are providing a service, how will you go about doing so? If it’s a little more complex than that, how will you develop it? Or if it’s a physical product you will be selling, how will you be manufacturing it? All of these details should be outlined. If your business operations will include product manufacturing, you should also include details of your entire intended process, including assembly, packaging, shipping, and so on.
Unless your product or service is extremely rare, it’s almost a guarantee that you’ll have competitors. This section of your small business plan should identify your main competitors, including their strengths and weaknesses, strategies that have led them to succeed, decisions that may have caused them to do poorly, and so on.
Outline the various roles within your business, such as CEO and other key employees. Listing your business’s operation structure will help plan for ongoing costs, and help you determine how much capital will be needed to function proficiently. Keep in mind that your business will continue to grow and that this will be an approximate estimate of who is needed to keep operations functioning efficiently. As your business expands, it is likely that you’ll make changes to this component of your business plan.