Normally, a business plan is used to layout a business, so it can get funding from venture capital firms, angel investors, and other private capital. It goes into great details about the business concept, its marketing plan, how the funding is spent(for example salaries, traveling, and other perks), and sales projections. Creating these documents, is a time consuming process and might not really produce much more than more paperwork. The types of small business,such as our muse, these business plans are generally too complex. Since some planning has some purposes, and generally setting goals isn’t exactly a step backwards, having a business plan is worth having. Instead of investing in a business plan project program, or doing one by hand, a one to two page document, with some key items is more effective for our purposes at this time. From this document, by breaking down what your business is you also can create an optional elevator pitch and easier quick explanation of your business. At minimum, our business plan should have the following:
What is the intention of your business?
What is your widget your creating or what goal is it trying to reach? Explain it in a few sentences. Optionally, you can also place a mission statement if you have one near the top here also.
How you plan to reach to potential customers, in a nutshell.
Don’t list a full marketing plan containing slogans, ad concepts, and ad copy. A marketing plan is essential for your business, and can be drawn up later. For now just write up a general program. For example: will use Google adwords advertising on (insert category) keyword(s), or cheap TV ad time in the middle of the night on Saturdays.
Your Financial Milestones
Write down what you expect to make in 3 months, 6 months, and 1 year, and if you wish, go beyond that. Write also, how you do it. Is it by obtaining funding or by bootstrapping using your profits to keep layering more business?
Some optional items
You can list some goals, write how much time per week you have to dedicate to your business(time commitment), and if you have a business partner, list his/her’s responsibilities in the business, and your. This one is critical, so things are kept formally, instead of informally, which can cause problems if there a business divorce.
While this document may seems like a useless page of data, its really setting up what you business needs to do to function. Call it a formal written page of goals and expectations. Plus, seeing how you business is going to function, you can narrow your focus, than if it was just thought up in your brain. If you have any more suggestions for business plans, please leave a comment or two!
