Writing an Effective Business Plan For Your Small Business

Plans are Useless; Planning is Indispensable

“Plans are useless; planning is indispensable,” according to Dwight D. Eisenhower, then Commander of the Allied Forces in Europe during WWII. Now, you may be in total agreement with the first part of that statement, but you are really not convinced of the truth of the second part.

At this point, you may be tempted to skip writing a business plan altogether, viewing it as an unnecessary exercise in jumping-through-the-hoops, suggested by some old business professor who probably never held down a “real” job anyway. Maybe it’s okay as an assignment for an MBA class, but it would be just too confining and irrelevant for today’s fast-paced business environment. Anyway, you’re ready! You’ve thought about this business venture for a long time and talked it over with friends and everybody agrees it’s a great idea. Best to strike while the iron is hot!

Press for Success

Far be it from me to dampen your enthusiasm, but you should give yourself every opportunity for success. That’s what the planning part of the process of creating your business plan will do. By the time you have pressed your way through it, you will not merely have some neatly arranged document to keep on file, you will have a working tool that addresses the essential factors that influence your future.

Besides, your friends may be 100% behind you in your new venture, but, in case you are hoping to involve others who have actual money to invest, you may need to be able to make a convincing case. Wouldn’t it be nice to have anticipated possible questions and be ready with plausible answers? If you are risking your own money, that is perhaps even a stronger reason to do some indispensable planning.

Easy Writer

If you are one who is intimidated by the blank page, never fear! There are several good software packages that will guide you through the process, such as Business Plan Pro Complete from PaloAltoSoftware. Business Plan Pro Complete walks you through the entire planning process and generates a complete, professional and ready to distribute plan with a proven formula for success. The planning wizard makes it a snap to get started since you simply answer yes or no questions to create your custom business plan framework. Bplans.com offers free business plan samples and how-to articles as well as a wealth of other information. It is definitely worth taking the time to checkout. Microsoft Office Online Templates also has a variety of free templates to use with their products. The wizard indicates the information you need and you fill it in as you go.

You may find that the easiest part is the actual writing of the plan. The real work comes in the data-gathering, which may take you a hundred hours or more, depending on what you already know or have researched. If your new venture is in an area where you’ve been working, you may already know about your customers, your suppliers, your marketing plan, your organizational structure, your financial and cash flow needs, equipment, inventory, and so on. If you know all of these except for Marketing, say, then this is where you will need to invest some time and effort. You can find a wealth of information by utilizing the traditional data sources such as chambers of commerce, major cities’ websites, trade associations, the US Census Bureau, trade journals, magazine and online articles and advertising, etc. Performing keyword searches on Google, or Ask will bring up websites to check out. Following are some places to start:

  • James J. Hill Reference Library (jjhill.org): One of the nation’s premier business libraries to bring you FREE and affordably priced tools and resources you can use to create a better business plan based on relevant and credible data.
  • U.S. Census Bureau (census.gov): A source for a variety of useful statistics, especially the Economic Census that comes out every 5 years.
  • American Demographics (adage.com/americandemographics): Just as the title suggests, numerous free reports about consumer demographics in the U.S. nationally and by statistical area.
  • Internet Public Library – The Census Data and Demographics (ipl.org)/: An especially useful site that has links to information about countries other than the U.S.
  • Corporate Information (corporateinformation.com): Features information summaries on over 350,000 companies in the U.S. and abroad for competitive analysis.

You can find a variety of companies online to help you with your market research. For example: Sundale Research’s (sundaleresearch.com) primary goal is to provide new and mature businesses with objective, accurate industry data and market analysis on a wide range of topics. Their market research is intended to save you time and money while keeping up with industry trends.

But your idea may be so new that you may also need to talk to potential customers, host some focus groups, talk to an ad agency, or maybe even make a prototype and float it past some people. Be prepared to spend the time. Remember, it’s not about the Plan but the Planning.

Build It on Paper First

Whether you decide to use business plan writing software or to just follow this guide and create your plan with your word processor, here are the sections of a good plan and the questions that need to be addressed:

  • Cover Page – Show the name of the company, your name, and the date.
  • Introduction – What is the name and address of the business? Who are the principals, their titles, and their addresses? What is the nature or purpose of the business? What is your launch date? How much start-up and/or operating capital is needed?
  • Executive Summary – One to three pages that summarize all the information to follow; come back and write this last.
  • Industry Analysis – How does your product or service compare with what is currently on the market? What is the trend in the overall industry? What have been the total sales in this industry over the previous 3 to 5 years? What new products or technologies have had the biggest impact on this industry recently? What is the future outlook for these and what trends are emerging? Who are the competitors, where are they located, and how are they doing? What advantage do you offer over them? Who is buying this product or service now? Describe the typical customer for this product or service. Are there emerging markets or market segments? Where does this product or service currently perform best? Possible Data Sources: trade associations; trade journals; attorneys & accountants dealing with the industry; industry salespeople; state business websites; focus groups.
  • Description – What product(s) or service(s) are you offering specifically? Are any patents, copyrights, or trademarks needed? Have they been acquired/filed? What is the size of your business? Where will it be located? Will this require purchasing or building a facility? Will this require leasing a facility? At what cost? Has a lease been negotiated? What personnel will you need? Where will you find suitable employees? What equipment do you need? Will it be purchased or leased? What are the qualifications of your principals? How do their backgrounds promote the success of this venture? Why do they think this will be a successful venture? Possible Data Sources: local Chamber of Commerce; community colleges & local universities; local employee leasing company; real estate agents; US Patent & Trademark Office; US Copyright Office.
  • Production Operation – If a product must be manufactured, what is the process? Will the work be done on-site or subcontracted? Who are the subcontractor(s)? If on-site, what space, equipment, machinery, production employees are needed? What suppliers are needed? Who are they? How will quality be assured? What is the anticipated production output? What established credit lines do you have? Possible Data Sources: local Chamber of Commerce; yellow pages; trade associations.
  • Service Operation – If a service is offered, describe it. Will the work be done by company personnel or subcontracted? Who are the subcontractor(s)? If on-site or in cyberspace, what employee qualifications, equipment, and technologies are needed? How will quality be assured? What performance levels are anticipated per employee? Possible Data Sources: local Chamber of Commerce; yellow pages; trade associations.
  • Marketing – How is the product or service priced? How will it be distributed? How will it be promoted? Will it be promoted by the venture or an outside agency? What agency? How have you determined what amount to set aside for marketing? How have you determined product or service forecasts? Possible Data Sources: on-line searches; Amazon; local outlets; trade journals; industry attorneys & accountants; salespeople.
  • Organization
  • How is the business structured? Who are the principals and the principal shareholders? What authority does each principal have in the venture? What are management’s qualifications? What is the job description for each position? What does the organizational chart look like? Possible Data Sources: on-line templates for job descriptions & organizational chart.
  • Risk Assessment – What weaknesses are inherent in this venture? What vulnerabilities face this type of venture? What impact will these have? What new technologies may affect this venture over the next 1 to 3 years? What contingency plans are in place? What level of liability insurance is required? What does it cost? Who is the carrier? Possible Data Sources: trade associations; trade journals; Service Corps of Retired Executives (SCORE); industry salespeople; customers; focus groups.
  • Financial Plan – What is the anticipated income? What are the cash flow projections? What is the anticipated budget over the next 3 years? What is the break even point? When is it anticipated to be met? What funding is needed and where will it come from? What funding is currently available? What collateral is available? What is the net worth of the principals, if applicable? Possible Data Sources: accountant; accounting software; Small Business Administration; Small Business Development Center; SCORE; banks; venture capitalists.
  • Appendix – Resumes of principals/management; letters of recommendation from current business associates/customers/suppliers; marketing research data; demographic data; leases or contracts in place or as promised; business licenses; price lists from suppliers; trade or industry articles or data; floor plans; information on subcontractors; liability insurance policies.

Impress for Success – Now you have to admit, this is going to make an impressive package! Put it in a binder and you have built something to be proud of – the first of your many business accomplishments. Your potential investors will appreciate the depth of your analysis, but this tool will prove helpful in describing your venture to your employees, customers, and suppliers, as well. After you have been up and running for a few months, you will find that the planning that you have done will sensitize your inner “business compass” and allow you to flexibly adjust to contingencies. And that is indispensable!

In Summary

Planning out your business on paper first gives you long-term benefits with potential investors, employees, vendors, and suppliers. The business plan becomes your roadmap to success, with pertinent data that shapes the course of your business start-up and lets you adjust your journey as contingencies arise. Business planning templates are readily available and data sources abound at your fingertips. You will achieve a solid understanding of your business as you work through each section of your plan.

IMPress Action Checklist:

Below is a list of the steps that will help you put together your business plan. Check off each step as you complete it to keep track of your progress.

  1. Purchase business plan software or download a template
  2. Read over the business plan sections to decide what data you have, what data you need
  3. Gather data via the internet, phone interviews, print material
  4. Fill in the plan’s sections
  5. Write the Executive Summary
  6. Print and Bind Your Plan

Must-Observe Trends In Small Business Online Marketing

After the many updates launched by Google, most local entrepreneurs have already lost hope in their promotional techniques through the internet. Although conditions may be rough at the moment, your small business online marketing can still thrive provided that you know the right steps to take.

In connection to this, it is a must that you are updated of what is going on in your niche and in the cyberspace. This is because change is constant and learning how to adapt to it can keep your products or services in the limelight.

The first thing to embrace these days is that more videos are in and lengthy text is out when it comes to creating web content. Should you need to compose, perhaps, a long blog, ensure the presence of a couple of videos inserted in the paragraphs. In addition to being able to join the trend, it provides a cost-effective way for you to do small business online marketing. Videos are times as far as easy communication with potential clients is concerned. And so, there is extra time left for you to invest in profit-generating activities.

Next in line is the use of mobile phones. Being able to connect with your potential clients is a great edge over your competitors. It is similar to internet advertising with a touch of the typical call-to-action phrases which will encourage people to try your brand. A more costly type of promotion through mobile devices is sending of text or voice messages. Although it is said effective, a great number of recipients find it irritating.

For a desirable local online marketing method, you can join the campaign of providing consumers helpful product or service reviews. In fact, this is how many big and small companies these days monitor how their products and services fair in the market. Providing good reviews can also help you project an image of authority in the niche where you belong.

Moving forward, here is a quite obvious method – joining the social media bandwagon. Besides Facebook and Twitter, there are other social websites that are gaining popularity these days. Be keen to observe the most talked about topics among your target audience. Should you find anything related to your product or service offer discounts or packages using your social media accounts.

Computations done in the cloud is another trend that entices potential customers. This allows them to see beforehand possible the total costs of purchasing your products or subscribing to your services. This allows them to prepare for the payment. More than that, it is also beneficial for entrepreneurs like you when it comes to easy and reliable way for you to store data.

Lastly, include in your small business online marketing strategies the provision for easy payments. Customers are generally looking for the quickest method for them to do payments especially if they are very busy. Besides enabling your website for credit card payments, PayPal and Google Wallet are two of the famous options which entrepreneurs utilize nowadays.

What You Need to Know About Small Business Advertising

Since the dawn of time advertising has been making the world go around. For those in business, they understand the power this concept brings to their company. Small business advertising is big business for both owner and customer, for without it, commerce and trade is at a stand-still.

The key thing that advertising does is bring traffic to your place of business, whether it be online or offline. Traffic in the form of visitors who have a need for what you are selling or providing. One of the most important things you should keep in mind is that not all traffic is good traffic. When visitors come to your establishment, they are either just looking around, need more information about what you provide or they are ready to buy with money in hand.

As a business owner, you probably want more of the latter than the others. And if you have an online presence along with a brick-and-mortar company, you are able to have the best of both worlds. The following small business advertising tips will help you see the type of traffic you desire on a consistent basis.

Make Sure Your Website Has Quality Content

Regardless of what your site is related to, its content needs to be logical and provide added benefits to your viewers. Once you understand current online advertising trends, you will know that no longer is the time that you could create a web site, place a couple of banner ads and one-way links and see the cash come in. Only by keeping your entire web site on the same subject as it regards your particular niche, as well as with adding ideal top quality information, are you going to generate followers of people which may want to check out the things your subject is centered on.

Be an Authority in Your Area of Interest

To make sure that you come up with quality information, it’s essential to know at what you are actually talking about. You can do this by means of one of two ways: past experiences or researching the topic. As soon as a large number of people land onto your site, they’ve come as a referral or from the search engines and most of them are in need of advice to the answers to problems they are facing. If your internet site is first on the web, you are deemed the primary authority for that field. So your subject matter ought to be articulated so.

Be a Contributor to Internet Forums and Related Weblogs

These two methods easily add to others finding out about your expertise and moreover, it displays to the world that you sincerely like offering assistance. This approach appears great from the perspective of your followers not to mention the search engines, while increasing your website’s position status. You will find blogging sites and meeting places that are on your specified expertise very easily by simply using Google’s search engine. There will be additional targeted visitors through these sites that will generate a much greater following of people with circumstances who would like resolving as soon as possible.

Create Your Very Own Blog

Blogging sites that can correspond to a website are becoming quite popular at this time because new content is continually on hand. A number of individuals make full use of their blogs to tell personal experiences, similar to a journal. Other people use them for mentoring and instruction. Exactly how you choose to make use of your blog, ensure that it stays on-topic. What’s remarkable about developing a blog is the fact that you can actually drive traffic to your website from this and that increases its popularity.

Get the Advantage of Social Media

It seems everyone is making use of sites such as Facebook and Twitter to stay connected with one another. For this particular reason, you can accomplish the exact same thing with your own website and blog. However, you will find procedures that must be put into practice in order to not end up getting banned for spamming. However pertaining to the most part, feel free to use the information you have, expertise and experience to be able to help people when it comes to managing their particular difficulties in addition to drive free targeted traffic to your site or blog.

These fundamental methods of building an internet authority presence is exactly what online advertising trends are centered on. There are additional small business advertising strategies you can use to enhance your presence online. And by means understanding these strategies, your website, blog, products or services are going to be increasing in popularity before you know it.

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