About Small Business Plans

A business plan is a critical component for business success.

A business plan is a critical component of the success of a small business. This written documentation should be used not only during the start-up phase of a business, but it also should be continually updated to reflect the current status of a business as it grows. Small businesses typically create three-year business plans.

Significance

A business plan identifies details needed to run a small business successfully. It clearly spells out the product or service offerings, the market and competition. In addition, a business plan identifies goals, marketing strategies and operational plans. In essence, it acts as a blueprint for building a successful business. A small business plan is essential not only for presenting to venture capitalists, but also for day-to-day operations.

Features

Small business plans typically include the following section titles and descriptive details: cover page, including name, brand identity, version number and date the plan was prepared; table of contents; executive summary, a succinct snapshot of small business, such as target market size, financial goals and funding (if needed); company summary, including company specific information, such as goals and missions; market analysis, including industry analysis, target market and competition; product or service descriptions; marketing and sales plans; operations and management plans; financial plans, including projections and historical data; and an appendix with any supporting documentation.

Benefits

An important benefit of having a small business plan is that it can help prepare the business owner to change strategies quickly to adjust to changes in the market or the addition of competition. Being able to review and rewrite business plan, coupled with research and analysis, can enable a business owner to modify the current operational or marketing strategy.

Size

A well-developed small business plan should be about 20 to 30 pages upon completion. This assumes printing on one-sided paper with a 1-inch margin on all sides.

Considerations

A small business plan should be concise and well written. If writing is not one of your strengths, consider hiring a professional with experience in developing small business plans or seeking the advice of a seasoned mentor in your industry. This is particularly true if you are seeking funding for your business and need to present your business idea to banks and venture capitalists.

Resources

• Small Business Administration: Small Business Planner
• Navarro College: Small Business Development Center
• SCORE.org: Business Plan Template