An Effective Business Plan Layout is Essential For Small Business Success

Creating a dynamic small business plan is a critical stepbusiness including location, staffing, employee recruiting,
to understanding your business and developinghiring, training, and evaluating processes, building /
successful strategies and goals / objectives. Oneequipment lease or purchase, etc.
essential feature of business plans that guides• Marketing - It is essential to have a strong
entrepreneurs to growth and profits is an effectiveunderstanding of target audiences or types of people
business plan layout. After all, if the plan doesn't coverwho will be most likely to purchase your product or
the essential components of your business clearly andservice. This is also the opportunity to discuss primary
correctly, it will probably not be very relevant.competitors and how you plan to optimize your
Here is a general outline for a success small businessbusiness in a particular market or niche.
plan that covers all of the areas financial institutions• Products / Services - Provide a detailed
and angel investors look for when lending capital anddescription of the product and / service your business
also provides an excellent roadmap for owners inwill promote and other relevant information such as
tracking business milestones.production / distribution methods, pricing, etc.
• Executive Summary - This needs to be a concise,• Sales - Products and services rarely sell
hard-hitting overview of your business' information,themselves so you need to describe how you plan on
priorities, and projects. Keep it to 1-3 pages and writegenerating revenues and profits. Are you going to use
this section last so that the narrative accuratelyadvertising and, if so, what type (print, radio, TV, etc)?
reflects the rest of the document. Remember, if thisHow will you measure the success or failure of your
section must grab the reader--making her want tochosen method(s) to generate revenue?
read more--or the entire business plan will be• Financial Projections - This is another "nuts and
compromised.bolts" section of the plan. It is essential to document
• Mission Statement - Mission statements areoverhead costs, product pricing, and anticipated profits
ridiculed but it is always a good idea to document whatfrom your business. Create a spreadsheet that shows
your small business is going to do and why it is soeach line item and tracks projected figures as well as
important. The mission statement should not be anyactual.
more than 1-2 sentences and should reflect the• Appendix - Pull together all relevant documents for
primary purpose for opening the business and why it isyour business such as insurance policies, leases, and
so important.industry-created information about your product or
• Company Description - This is where you describeservice. Most investors will want proof or evidence to
the nature of the business-does it sell a product orshow that you have complied with all regulatory /
service, what target audience will it serve, what is theprofessional standards and to justify your optimism in
general territory it will cover, and what is the staffingyour business model.
arrangement.Reaching the decision to write a small business plan is
• Risk Assessment - This allows you to do ancertainly an important step in attaining success and
honest evaluation of your business, its industry, andprofits. However, careful attention needs to be given to
what pitfalls may affect you when you least expectthe business plan layout to ensure that you include all
them. It is very important to show that you have spentessential elements needed to guide your actions /
time to anticipate problems and identify potentialdecisions and attract financial institutions or angel
solutions.investors.
• Operations - This reflects the nuts and bolts of the