Step 1: Write a business plan
When starting a business plan, you’ll want to focus on who started it, what are the ownership percentages or what the business does, when is it started, where is it located, why was it started, and how is it setup, among other things?
Be aware that the document you create will be a working document, never a final one, as you will want to revisit it annually, at least.
Check out the links for more templates and resources on business planning.
- 2021 Business Planning
- Business Plan Road Map
- Business Planning Webinar in Partnership with the - Fayetteville Public Library + YouTube.
Business Plan Sections –
Here are a few of the sections in a business plan. Keep in mind that business plans range in size (number of pages) and content based on the business, structure, size, etc.
Business Name and Tag Line
o What is your product/service?
o Key features and benefits?
o Variations?
o Distribution channels (where are you selling)?
o Pricing?
Company setup (sole proprietor, LLC, S-Corp, etc.) - description and about (see Step 2 for more information)
What are your Mission, Vision, and Values? What are you trying to achieve?
• Mission Statement Examples | Wix
• Mission Statement Template | Asana
• Does Your Small Business Have a Strong Mission and Vision | Score
• Values | SBA
• Vision Statement Examples | Fit Small Business
What are your Short- and Long-Term Goals?
Roles and Responsibilities - who does what, where, and when
Research Competition - what do they do well, what do they not?
SWOT Analysis - SWOT stands for strengths, weaknesses, opportunities, and threats. Your SWOT will not be a final document, it is always a work in progress. Update your SWOT Analysis at least once a quarter.
It can be as simple or complicated as you want, just don’t over complicate it. Your strengths and weaknesses are more internal factors while opportunities and threats are more external. You can control internal while external you can’t.
Examples of strengths could be experience/employees, reputation or repeat clients, while weaknesses may be lack of experience or new employees, marketing plan, or bad location.
Examples of opportunities may be expanded geographically, diversity of products, develop strategic alliances, while threats may be competition, market saturation, or global virus.
Target Market and Competitive Advantage
Your target market is the people that would be more likely to want your product or service. They normally have similar characteristics such as age, gender, location, race, or interests.
You can figure out your target market by figuring out the value that your goods or services have to offer. After that you can then figure out how better to market to them.
Your competitive advantage could be the service you offer, how quickly you can do it, the types of products you use. It is something that makes you unique from others and thus puts you ahead of other companies.
Marketing
Marketing is your best way to promote your services or products. It covers advertising, sales, online presence, retention, and more.
o How will you reach your target and sell your product or service?
o Examples of marketing could include social media, online ads, events, sales, direct mail, traditional advertising, and more.
- Marketing Virtual Event for Small Businesses in Partnership with the Fayetteville Public Library.
Create a budget for startup and monthly costs
You need to start by estimating the expenses of what will be needed to start your business. In each category of expense, it is best to draw up a list of everything that needs to be purchased, both tangible assets and services.
Next is to determine where these goods or services might be purchased, make sure to research more than one in the category to see options. Pay attention to not only price but also terms of payment, delivery reliability, and service.
o Here is a template to help with that - Startup expenses from Microsoft Office.
o You will need a cash cushion to start, or otherwise known as your working capital. What income is coming and timing plus the amount of expenses and timing is included in this – cash flow is key.
o Next will be the operational cost, which are your day-to-day, monthly, and annual cost. You’d add up your total expenses for monthly and annually, the sum of each would amount to your total operating costs.
Financial Projections (Statements)
Your financial statements will be written records that will show your business’ performance and activities. They include your balance sheet, income statement, and cash flow statement.
Government agencies, accountants, and firms can audit them. It is best to create a 12-month cash flow projection and 12-month profit and loss projection as a minimum when first starting out. If you can then create 24-month projects that you will update annually.
For more information on financial projections – check out the blog listed in the Funding section.
Where is funding coming from?
Your funding may come from a loan - A potential loan source in Arkansas is FORGE, Today’s Bank in Springdale, Communities Unlimited in Fayetteville, etc.
Or from a grant, or combination of the two - which is an amount of money the government or another institution will give someone for a purpose. Some vendors for grants are Grant Watch, Nerd Wallet, Fedex Grant, etc.
Another option for funding is Crowdfunding, and this is when a large group of people endeavor to raise money. Some crowdfunding platforms are Kiva, Kickstarter, WeFunder, etc.
Click this link for the financial side of your business plan.
