We’ve all heard that in order to run a successful business you need to have a successful business plan. But where do you start?
Getting an idea off the ground can be a hassle, but when the proper steps are taken it can be a lot easier.
Sharon K. Murff, public information officer at the U.S. Small Business Administration, shares the key ingredients to get your recipe of success in motion during an interview with the Recorder.
Recorder: Why is having a well-written business plan important?
Murff: Your business plan is like your personal resume. Or some think of a business plan as a roadmap with milestones for your business. It begins as a pre-assessment tool to determine profitability and market share. Later it expands as an in-business assessment tool to determine success, obtain financing and determine repayment ability, among other factors.
How can you make your business plan stand out?
1 Be clear about what you have to offer.
Beyond basic products or services, what are you really selling? Consider this example: your town probably has several restaurants all selling one fundamental product – food. But each is targeted at a different need or clientele. One has a drive-through fast food restaurant, another sells pizza in a rustic Italian kitchen and there’s a fine dining seafood restaurant that specializes in wood-grilled fare.
All these restaurants sell meals, but they sell them to targeted clientele that is looking for the unique qualities each has to offer. What they are really selling is a combination of product, value, ambience and brand experience.
2 Understand what makes your business unique.
What needs does your product or service fulfill? What benefits and differentiators will help your business stand out from the crowd?
Don’t become a jack-of-all-trades; learn to strategize. It’s important to clearly define what you’re selling. You do not want to become a jack-of-all trades and master of none, because this can have a negative impact on business growth.
3 Identify your niche.
Creating a niche for your business is essential to success. Often, business owners can identify a niche based on their own market knowledge, but it can also be helpful to conduct a market survey with potential customers to uncover untapped needs.
What are some essential elements to a good business plan?
There are two key factors:
The recognition qualities and viability of a business plan will be evidenced by the quality of what goes into it. “Cream does in fact rise to the top” just as “garbage in is garbage out.”
Take the time to do the research, understand the inner workings and what it takes to start or build your business. Because if you can’t explain it, who else can understand and help you in the growth process.
As your business is active, so should your business plan. Don’t write it and put it in the drawer. You should at least review your business plan once a year, or as you see change happening in your industry.
What are the key elements of a business plan?
1 Business plan executive summary
Your executive summary is a snapshot of your business plan as a whole and touches on your company profile and goals.
2 Market analysis
Read about the specific industry, market and competitive analysis information you should conduct and include in your plan.
3 Company description
What do you do? What differentiates your business? Which markets do you serve?
4 Organization and management
Describe how your management team will function and who they are. One of the key elements is to make sure and know that they have the capability of handling the assigned job description.
5 Marketing and sales management
How do you plan to market your business? What is your sales strategy? What is the structure of your management team?
6 Service or product line
What do you sell? How does it benefit your customers? What is the product lifecycle? Do you plan research and development activities? Tell how your products/services are unique or why yours are better.
7 Funding request
If you are seeking funding for your business, be sure to spell out how much money is needed and what the cost covers.
8Financial projections
A three-year projection is recommended, whether you are a start-up or not. As you add employees and anticipate revenue a projection will give you an idea of the profitability of the business. It also shows you where you may have to put in some extra work to obtain additional income.
9 Appendix
An appendix is optional, but a useful place to include information such as resumes, permits, leases and so on.
Are there local places that will be able to assist with the development of a business plan?
Creating a comprehensive business plan can be a long process, and you need good advice. The SBA and its resource partners can assist you in writing your business plan for free. SBA has resource partners that serve all 92 counties in the state of Indiana. For the closest location near you log onto sba.gov/in or call (317) 226-7272.
