Small Business Plan Tools
Plan for Success

Have a solid small business plan that minimizes risk and maximizes profits.

Make sure that your business plan is clear, focused and realistic.

Then show them that you have the tools, talent and team to make it happen.

Your business plan is like your calling card, it will get you in the door where you'll have to convince investors and loan officers that you can put your business plan into action!

Once you have raised the money to start or expand your small business, your business plan will serve as a road map for your success.

Your plan is NOT a static document that you write once and put away. You will reference it often, making sure you stay focused and on track - achieving each milestone you have planned for your small business.

Your plan will change and develop as your business evolves.

Do I need a small business plan?

Not everyone who starts and runs a small business begins with a business plan. However, everyone SHOULD have a solid small business plan because it certainly helps to minimize risk and provides credibility with prospective partners, creditors, etc. If you are seeking funding from a venture capitalist, undoubtedly you will need a comprehensive small business plan that is well organized and presents a sound business case.

If you approach a banker for a loan to start a business, your loan officer may suggest a Small Business Administration (SBA) loan, which will require a small business plan.

If you manage an existing business and approach a bank for capital to expand the business, although the bank may not require a small business plan, they will look more favorably on your application if you have one.

Reasons for writing a business plan include:

• Effectively turn your vision into reality!
• Define your new small business
• Support a loan application
• Raise equity funding
• Define objectives and identify action plans to achieve thoseobjectives
• Monitor small business plan progress and revise as necessary
• Define agreements between partners
• Set a value on a small business for sale or for legal purposes
• Evaluate a new product line, promotion, or expansion

What's in a good small business plan?

A small business plan should prove that your business will generate enough revenue to cover your expenses and make a satisfactory return for bankers or investors.

1. Executive Summary--features the highlights of your small business plan and sells your idea in two pages or less.
2. Company Summary--a factual description of your small business, ownership, and history.
3. Products (or Services or both)--describes your products and/or services and how they stand out from competitive products and services.
4. Market Analysis--provides a summary of your typical customers, competitive landscape, market size, and expected market growth.
5. Strategy and Implementation--describes how you will sell your product, how you will put your plan into action, and establishes milestones for your small business.
6. Management Summary--provides background on the management team, their experiences, and key accomplishments.
7. Financial Plan--contains key financials including sales, cash flow, and profits.

What makes a successful business plan?

• A detailed and well developed idea
• Clear and concise writing
• Presented in a logical structure
• Each section easy to follow and understand
• Illustrates market demand and management's ability to make the business asuccess
• Financial data supports profitability and is specific

How do you write a small business plan?

Sitting down looking at a blank computer screen as you prepare to start your plan can be daunting. In fact, the process may be completely overwhelming for someone who has never before prepared a business plan.

You should consider all of the following resources that are available to help create your master plan:

Hire a Professional?
A professional business plan consultant can create a quality plan for you (BUT AT A SIGNIFICANT PRICE! FRANKLY, WE THINK YOU CAN DO IT YOURSELF.), but you will still have to be prepared to think through your business and understand the underlying concepts in your business idea.

If you decide to hire a business plan consultant, you will have to work closely with the consultant to ensure that he or she develops a good small business plan that accurately represents your business or business idea. You can find a list of business planning consultants at www.planconsultants.com.

Buy a "How to Write a Business Plan" Book
There are many good books on the market that will help you to understand what needs to go into a good small business plan. You can read Timothy Berry's "Hurdle: the Book on Business Planning". Great Book - recommended reading!

Use Small Business Plan Software
A good business planning software package will provide you with an outline for a well-developed, objective-based and professional business plan.

Software packages may remove the problem of starting from scratch by structuring your business plan for you.

The business plan software should ask you the right questions that will pull out the most important underlying concepts within your business idea.

Consult local counselors at S.C.O.R.E.
The SCORE Association - #1 Small Business Plan Resource (Service Corps of Retired Executives) is a nonprofit association dedicated to entrepreneur education and the formation, growth and success of small business nationwide.

Conclusion

Always remember - YOU CAN DO THIS! Don't ever let anyone convince you otherwise.

We're constantly on the lookout for highly effective small business plan tools and resources that we can recommend to our readers. Share your own helpful hints and tips here.

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