The Importance of a Business Plan for a Small Business

December 12, 2017

By Larry Zinamon 

 

If you're one of the many people thinking about starting a small business, having a business plan is one of the first things you should have on your list of things to do. It doesn't matter if you're starting a small business from home or away, having a plan for your business is considered a blue print for a successful small business. What is a business plan and why do you need one? 

 

A Business Plan

 

A business plan is simply a plan of what your goals are for the business, and how you plan to go about accomplishing them. Some people refer to it as a vision for your business. I like to refer to it as a blue print or a road map to accomplishing your goals. 

 

Your plan should be spelled out in clear and defining terms and be kept simple. It should be a written document and used as a tool in managing the business. 

 

A plan should include but is not limited to the following: 

 

  1. A statement of your business purpose

  2. A description of your company

  3. The goals of your company

  4. The structure of the company (sole-proprietorship, partnership or corporation)

  5. The product or service that you are selling

  6. A market analysis of your product or service 

  7. Resources spent (time and money)

  8. A financial plan to include financial statements 

  9. Information about the managing principals in the company

  10. How you plan to manage and operate the company 

 

The Importance of a Business Plan

 

The success of a business starts with a business plan. The plan defines your business as to what it is and how you plan to achieve the goals of the business. It presents a clear picture of your business in terms of goals and objectives.

 

The plan reflects how you plan to operate your business. How you plan to market your product or services. It provides a financial picture of the company.

 

If you are looking for money to fund your business, you're going to need a plan for your business. When you go to borrow money, lenders and investors are going to want to see written documentation in a business plan of your financial situation. Why do they want to see this information? Lenders and investors want to see this information because they are the ones taking the risk in lending your business money.

 

Once you have a plan in place, it's important that you follow it. If you're achieving your goals you should stick with the plan. If you are not achieving your goals then you will have go back, analyze your plan to find out what is working, what is not working and why it is not working. 

 

A plan is not etched in stone. It is subject to change. As time goes on, things change in this world and businesses like everyone else are subject to change. A good plan will reflect changes that a company has to make to keep it competitive and successful.

 

Where can you find samples of a business plan for a small business? If you go into any of the search engines such as Google or Bing and type in "samples of a business plans for a small business" you will find websites with this information. 

 

This is why it is important that a small business should have a business plan. If you look at those small businesses that are successful, you will find that most of them all started with and have a plan for their business.

The Author

 

Larry Zinamon has been involved with taxes for over 35 years. He is a registered tax preparer and authorized e-filer with the IRS. Larry has had his own tax consulting and preparation business for over 20 years. Prior to starting his own business, Larry worked for the IRS. During his 14 years with them, he worked as a Revenue Officer, Taxpayer Service Specialist and Tax Examiner. Within the past couple of years, Larry has been doing some network marketing.

 

Article Source: The Importance of a Business Plan for a Small Business

Share on Facebook
Share on Twitter
Please reload

Please reload

Featured Posts

Ten Ways to Get a No from a Venture Capitalist

January 8, 2018

1/5
Please reload

Recent Posts
Please reload

SeArch by Categories
Search By Tags
Please reload

Follow Us
  • White Facebook Icon
  • White Twitter Icon
  • White Instagram Icon

© 2018 by Business Plans for Startups & Whitmore Business Ventures, LLC