There are several ways of setting up a small business. Entrepreneurs can use their own funds to set it up, from the registration of the business all the way to starting the operations. They can also seek funding from several organizations such as banks and lending institutions, or pitch the business idea to a venture capital. But no matter who entrepreneurs talk to for funding, they will need to present their small business plans.
Writing business cases for small enterprises are just as intensive as writing one for a major business venture. Aside from the fact that the sections and parts are typically the same, they both have the same sets of information that need to be presented towards the objective of convincing the readers and audience to invest money into the venture.
If you are thinking of setting up a small business and are not yet convinced that you should go through the trouble of writing a business case, it pays to know the other reasons why it’s a smart move to come up with a small business plan. Aside from the fact that a business plan is required if you want to raise funding, either through investors or loans, it also helps you map out the internal process by setting goals, and laying down the strategies and directions that you intend to take in order to reach these goals. In addition, a business plan is also an efficient way to come up with a valuation for your business for sale or other legal purposes.
So what exactly is a business plan for small enterprises? A business plan is a document that proves that your business stands to generate sufficient revenues to cover all its operating and overhead expenses. There can be some variations on the messaging, however, depending on who you want to present this to. If you intend to show this to your partners to give them an idea on how you intend to grow your business further, your business plan should offer more operational details. If you intend to get funding, however, it should cover more financial details, as well as information on the management team. Investors will always want to know if the people who are leading the company where they are putting their money are credible, highly professional, and knowledgeable of the market.
There are several keys to developing a successful business plan, which means a plan that gets the buy-in of your audience. First, it should be able to present a coherent idea that has been thought out completely. The language and tone used should also be concise, brief and clear, and should not be beating around the bushes, so to speak. In terms of the structure, the business plan should be logical and chronological. The end goal should be to show the business’ profitability.
Small business plansare entrepreneurs’ ticket to getting funds for expansion purposes. Most investors recognize the fact that they don’t have the monopoly over great ideas. And so they are bound to know a good idea when they see one, and bank on its success with their own funds.