10 Steps to Create Business Plan for Small Business

10 Steps to Create Business Plan for Small Business

Business plan is a formal written document containing the goals of a business, the methods for attaining those goals, and the time-frame for the achievement of the goals. It also describes the nature of the business, background information on the organization, the organization's financial projections, and the strategies it intends to implement to achieve the stated targets. In its entirety, this document serves as a road-map (a plan) that provides direction to the business.

Written business plans are often required[by whom?] to obtain a bank loan or other kind of financing. Existent templates and guides, such as the ones offered in the United States by the Small Business Administration can be used to facilitate producing a business plan.

What are the 3 main purposes of a business plan?

The 3 most important purposes of a business plan are 
  • To create an effective strategy for growth, 
  • To determine your future financial needs, and 
  • To attract investors (including angel investors and VC funding) and lenders.

Typical questions addressed by a business plan for a start-up venture

  • What problem does the company's product or service solve? 
  • What niche will it fill? 
  • What is the company's solution to the problem? 
  • Who are the company's customers, and how will the company market and sell its products to them? 
  • What is the size of the market for this solution? 
  • What is the business model for the business (how will it make money)? 
  • Who are the competitors and how will the company maintain a competitive advantage? 
  • How does the company plan to manage its operations as it grows? 
  • Who will run the company and what makes them qualified to do so? 
  • What are the risks and threats confronting the business, and what can be done to mitigate them? 
  • What are the company's capital and resource requirements? 
  • What are the company's historical and projected financial statements?
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References: wikipedia

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