Writing a Business Plan: 10 Steps to Small Business Success

When starting up a small business, it is important to create a business plan. Businesses with a plan in place generate about 50% more revenue than businesses without plans. Writing a business plan can be very overwhelming, and for this reason, you can find many online services that specialize in writing business plans for small businesses from less than $100 to more than $1000, depending on the quality. There are also free templates available online for those willing to take on the task solo.

In order to fund the conception of a small business, you need support from many different sources such as banks and investors. These funders will want to see exactly how you plan for your small business to be run and how their money will be put to use. With a business plan, you eliminate any confusion, and clearly communicate to them that all risks have been calculated, reducing the chance of failure.

Government money, bank loans and investors will all require a business plan. Here are ten easy steps for creating your own:

1. Create a Vision
Decide the type of business that you are going to create. What is the mission and purpose of your company? Once recorded, your mission and purpose will set the tone for all other business actions taken.

2. Create Goals and Objectives
Do not sell yourself short here! You can achieve anything you set your mind to. Set up a list of short, medium, and long term goals. Some questions to consider when creating goals and objectives: What is your business going to do to make it different from others in the same industry? How much revenue do you want the business to generate? Where do you want your business to be located? Remember to keep personal goals in mind when creating business goals because they will both affect each other.

3. Know Your Market; Know Your Customer
Who will you market to and what advertising methods will you use to reach those people? You would not advertise a line of children’s toys on the soap network. With some research, you can determine the right type of products for your customers, or the right customers to market to, based on the products/services. This will all be determined by your vision from Step 1.

4. Know the Audience of Your Business Plan
Here you must decide which type of funding is proper for your business and cater to the people you are requesting money from. There are pros and cons associated with each type of funding.

5. Create an Outline
Design an outline of your business plan, so that you know the research required to complete it. Your business plan should be anywhere from 10-30 pages long depending on Step 4.

6. Collect Data and Research
Show your audience of the business plan that you know what you are talking about. Published statistics from the industry you plan to enter are good and can be backed by interviews with industry experts.

7. Analyze
After you have collected all of your data and research, you will need to organize it into your business plan. Here you can rearrange and eliminate whatever you find necessary. Use this information to create a competitive profile that will result in the necessary company funding.

8. Summarize Your Business Plan
At the end of the business plan, you can sum up all points and arguments you have made. Here is where you would include the return on investment or loan payback requirements depending on who you are requesting funding from.

9. Edit, Edit, Edit!
Nothing looks worse than a sloppy business plan. This is your only chance to make a good impression. Once you have proofread your work, have others do the same thing. Remember, you are essentially asking for a lot of money, and a good business plan is the key!

10. Open your Doors
Congratulations! It is time for business to begin.