Would you like help writing a small
business plan?

Writing a Successful Business Plan

For someone first starting a small business, a small business plan is very important. Why? Every business needs a direction and a strategy. That's what a good business plan must give you. A well-written business plan will provide your business with a blueprint for success.

It will also go a long way to help you keep your thinking organized and in perspective. Your plan does not have to be long and complicated. For smaller businesses, keep it as informative, simple, and succinct as you can, and flexible. Use it as a living document, modifying it often as needed.

I suggest not spending tons and tons of time on a business plan, at least at the beginning of starting your small business. Understand the basic structure of a standard, traditional business plan, and use it to write your own. Be as spontaneous as you can writing it.

Don't worry about spelling or grammar until your finished, when you will proof read it, making corrections, as needed, and smoothing it out. One other suggestion is to invite a friend to help you in writing it, one who understands what you are doing, agrees with your business venture, and is business minded.

The Main Things to Include in Your
Business Plan Are:

• Executive Summary. A summary of the most important aspects of your business. It's usually one or two pages in length, but you can try to keep it to just one page. The Executive Summary is probably the most important part of the small business plan that you will write, because it may be the only part of the plan that most other people will read in detail. Include here a description of your small business and its uniqueness. What advantages over its competitors does your small business have?

• Business Goals. Establish here specific, measurable (usually monetary), achievable, and time-targeted goals for the first and subsequent years. Your goals should express a sense of direction and purpose.

• Mission Statement. This expresses what the business is and what it stands for. The Mission Statement should not be confused with Business Goals. A mission statement deals with your business philosophy, business goals are what you can realistically achieve as far as monetary gains.

• Product and Services. Describe why you are in business and list your products or services, including prices. Everyone is going to want to know, of course, what you are selling.

• Market Description. Include here a description of the particular market your business is competing in, for example, "selling automobiles on eBay.com, an online auction website." Be specific. Try to give basic information about the market, briefly but in some depth also. Include exactly who your target customers are and needs you are fulfilling better than your competitors.

  If you like, include a market analysis table, chart, and text, not shown here, but you can see them on my Business Plan Template page (new window). If you include tables and charts in your business plan, it does add color, understanding, interest, and ease of reading to such business documents. It also gives your small business plan, or other business document, a more professional look.

• Management Summary. This includes a description of top management and what value they bring to the company as far as skills and experience. If there are many involved in top management, an organization chart showing a flow of responsibility would be helpful. Many business plans will include here a chart showing a yearly payroll summary for all employees of the business.

  Also describe, in the Management Summary, the legal structure of your business. That is, what is the legal form of its ownership? Is it a sole proprietorship, corporation, partnership, or other?

• Financial Forecast. An estimate of start-up costs, annual projection of income and expenses using a balance sheet (new window), income statement (new window), and a cash flow statement (new window)