How to write a business plan for a small business yourself: the structure and content of a business plan (samples for free)
Good planning is the basis for the success of any enterprise, and small projects are no exception. Having in hand a business plan that was drawn up correctly, where all the components of success are presented and all the main risks are taken into account, with due diligence, you can definitely count on a good return from the activities of a small company. Let's analyze the procedure for developing this document and consider an example of a business plan for a small business.
Good Small Business Business Plan Highlights
- all necessary information about the company;
- the goods or services that it produces;
- sales markets;
- the company's marketing approach;
- the organization of all major production processes.
The main difference between a plan for a small business is that when drawing it up, you need to take into account much fewer issues than when developing planning documentation for a large company.
Therefore, the documents themselves are simpler and have less volume.
However, in any case, you need to approach the matter with all seriousness, because a mistake can be costly. If there are one or more mistakes in the plan, this can prevent the company from bringing a profit.
Procedure for developing a small business business plan
Seven main points should be consistently recorded in the plan.
- Business concept.
- Basic information about the company.
- The essence of the enterprise, information about the goods sold and the services provided.
- Market conditions (information about potential customers and competitors should be provided here).
- Development strategy.
- Organization of company management.
- Financial planning.
How to draw up a business plan correctly?
To make a plan, you must first answer a few basic questions.
- What is the purpose of creating a business?
- What result do you want to get?
- How will the company be managed?
- To what extent are the company's activities affected by external factors?
- How competitive will the company be?
- How strong will the company's financial strength be?
In order for the planning to be carried out at the proper level, it is necessary to have some business experience and understand how to properly organize financial flows.
You have already developed and described your business development strategy. Now it's time to calculate everything in detail. This step-by-step guide will help you: how to draw up a business plan.
A business plan is a detailed description of your project with calculations and prospects for the next few years. It is needed by potential investors or the bank to which you will go for a loan; partners, intermediaries, your team and, ultimately, you as the creator of the project.
A business plan is usually written three to five years in advance. But you can take a year as well, as economic conditions are changing rapidly.
The main task of a business plan is to convince potential partners that this is an interesting project from an investment point of view, which will pay off the money and effort invested.
If you are going to open a typical offline business or a franchise business (for example, a coffee shop), the Business Navigator of the Federal Corporation for the Development of Small and Medium Enterprises ( Corporation SMEs).
After registering on the site, you will be able to choose the type of business, select the appropriate geolocation in your city, assess the competition and get a forecast for income. Enter the required parameters and you will immediately receive a finished document, which will only have to be printed. If you need a loan, with this document you can go straight to one of the banks that cooperate with the SME Corporation.
If you have your own unusual business idea, you will have to draw up a business plan yourself.
A business plan includes a description of a product or service, market analysis, production plan, organizational structure of your company, marketing strategy for product promotion, and a financial plan that summarizes all the basic calculations. A business plan must necessarily answer the questions: how much money is required to launch a project and how long will it pay off?
The resume is at the beginning of the business plan, but you will write it at the very end. This is a summary of the entire document - the conclusions that you will draw based on detailed calculations. After reading the summary, investors decide whether to study your plan further or not to spend time on it.
Business plans are needed for various purposes. They are necessary to obtain a loan, attract investors, and the entrepreneur himself seeks to objectively assess a win-win option (as it seems to him) in order to identify risks. In this regard, as a rule, the plan is drawn up in three versions: optimistic, pessimistic and average. Each format has its own purpose.
The main purpose of the calculations is to determine in how many years or months a business idea - provided it is successfully implemented - will recoup the costs and start making a profit. Regardless of whether the plan is for internal or external use, it is drawn up according to a certain algorithm. The result should be the determination of the amount of necessary costs, the planned profitability, payback period and other important parameters of the future enterprise. To simplify the process, it would be good to have before your eyes a sample business plan with calculations for each similar type of product or service, taking into account the projected turnover.
Sample Small Business Business Plans by Investment Size
A sample form for drawing up a business plan should be adapted to the individual characteristics of each type of economic activity, region and proposed investment amount. It is important to take into account the income level of the population, which determines effective demand, the seasonality of sales and many other factors. Ready-made examples of business projects with detailed calculations for small businesses, relevant in 2021, should be used as samples, making the necessary changes.
For business without investment
It should be noted right away that almost no business can be started without any initial costs. It's about minimal investment. The calculations are based on the experience of implementing similar projects by many entrepreneurs. To make the plan more detailed, it is necessary to take into account a number of external and internal factors. The table shows some examples with an indication of the specialization of the activity.
Nature of activity Investment amount, thousand rubles Competition level Difficulty level (on a five-point scale) Payback period, months Repair of household appliances30-50High33Search for lost items35High11Manufacture of bath brooms30Medium13Production of artificial decorative stone45Low22Cleaning company50Medium26Tinting windows for the summer50Medium12
Sample business plans available on the Internet contain detailed information on the necessary calculations, the order of marketing research and product promotion. For the most part, a low financial threshold for entering the market presupposes the provision of services to the population.
Business with investments up to rubles
The implementation of a new business project begins with drawing up a plan. The document reveals the purpose of the project, goals, business model and the planned result. The commercial idea is clothed with calculations, analyzed and perspective indicators.
Before implementing an idea, you must answer the questions for yourself and for potential investors:
- How profitable is the project?
- Are there enough resources for implementation?
- Is the result profitable?
There is no point in implementing a unprofitable project in advance.
So what is a business plan, how to draw it up yourself, what recommendations should you follow?
Business plan assignment
A business plan is required to provide business information to investors, founders, partners. The document allows you to assess the perspective of the project and the result of investments. Despite the standard structure of the document, the composition of the data depends on the target audience.
So, if a business plan is submitted to receive a subsidy, it is required to show the prospect of creating new jobs. For lending purposes, the emphasis is on the profitability of the project and activities in general.
A business plan written primarily for external users is often a guide for the entrepreneur himself. Business planning does not always match the actual outcome. In the process of activity, it is necessary to solve many current issues that distract from the main task of the business.
Regular revision of the plan, its adjustment allows you to adhere to the tasks set.
Every successful person plans and analyzes every action. Such an operation helps the business to calculate all the advantages and disadvantages in order not to get into a loss. A business plan is an important step in business.
The future leader must have complete information about the structure of the company. This knowledge will help him steer the firm in the right direction. How to make a business plan from scratch? Let's look at examples.
What is a business plan and what is it for?
It is an analytical document in which all the pros and cons of doing business, additional operations and everything from which the foundation of entrepreneurship is laid are clearly calculated. The business plan helps throughout the entire life of the organization. It describes the main objectives of the firm, the problems that may arise and methods of solving them.
For example, you decide to start your own business, but your finances cannot afford it. Then a business plan comes to your aid.
Proper planning will open up the possibility of attracting investors or lenders, which will help solve your financial problems.
That is, creating a business plan from scratch is first of all necessary within the organization: to analyze the company's work. Secondly, it is necessary to consider a strategy for the safety of investing funds of investors.
Read here how to open your business from scratch without money and investments, and read more about preparing for starting a business in this material.
What will help in compilation?
An analytical mind is not required when writing a business plan. If you decide to start your own business, then, for sure, you understand all the specifics of the process. Here it is important to know about the needs of the target audience (the demand of potential customers), financial costs, possible losses and ways to increase the company's profitability.
If you are experiencing difficulties in the initial stages of planning, we recommend that you contact a highly qualified organization engaged in the services of drawing up business projects. Together with you, they will develop a business form for the requested document.
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