- Small Business Help - Image courtesy of Sigurd Decroos, rgbstock
Small businesses owners can use a business plan for several reasons. It allows progress to be measured and so give early warning that things are not going to plan. All plans can be changed and it's important that a business plan is a changing document. It should be used as an aid to the business owner and shouldn't be produced once then never consulted again.
Business planning can be complicated, especially for large corporations. Small business help to produce a plan more suited to the specific needs of the SME (small medium enterprise) is outlined below.
Small Business Plan Essentials
A business plan for the SME should include these essentials.
- A statement of why the business was started. Perhaps new technology has created an opportunity, or redundancy resources are available to take over another business. This statement can help others understand the purpose behind the business. It can also help a small business owner when times are tough as revisiting these reasons can aid motivation.
- A description of the 'bigger picture' a vision of where the business will be in the future. This helps keep the business on track. It is easy to become distracted running a small business - even working on things that may create income but do not contribute to the long term vision of the company.
- The structure - how many employees, location, limited company or partnership, shareholders, etc. This can help initially at business start-up to make sure everything is place ready to trade. It will also help as the business grows making sure employees (and suppliers) fit into the planned structure.
- The products and services to be offered. By listing the products and services to be sold, the small business owner can work out the resources needed to deliver them. For small business in particular resources will be limited and development of products and services will have to be prioritised.
- Objectives. The business plan should also include the main objectives to be met. These should include timescales and will change as the business develops. The list of objectives will help keep the business growing in the right direction.
- Actions. The steps needed to achieve the objectives. This also allows the small business owner to ensure that scare resources (time & money) are not overstretched and that the objectives really are achievable.
For larger businesses the plan needs to be more complex, but for most small businesses an outline of the essentials listed above will be sufficient.
Small Business Help to Write the Business Plan
The good news is that the business plan does not have to be a long complex document with lots of words and figures - especially if raising finance is not needed. Here are some ways to help a small business write the business plan:
- Use presentation and slideshow software (such as Microsoft PowerPoint) to produce a list of bullets outlining the essential points. Include pictures and colors to add interest.
- Use mind mapping software to make the plan more memorable.
- There are many templates available online. Search for 'business plan template' and fill in the blanks. Do delete those sections which are not relevant to a small business.
The most important thing about a business plan is that it meets the needs of the small business. If the business needs finance then the business plan will be more complex than for most small and home based businesses. For many small businesses the plan is a statement of intent, it changes to meet the changing business climate and it can be in whatever format the business owner prefers.
SME Success
Success for small business means delivering the business plan. The plan should be reviewed regularly. Sometimes everything will be going to plan, sometimes the plan will need changing and sometimes the actions to be taken will have to change. Unless there is a plan, there can be no certainty that the business is actually working.
A business plan can help a small business succeed. It allows progress to be measured against plan and can give early warnings when things need to change. Once the business plan is written, then more detailed plans such as the marketing plan can be produced.
Dawn Brewer - I have a portfolio career - as a writer, management consultant, instructor and coach - after twenty years in the corporate world. My ...
