Today’s blog post is for our friends- the small business owners and entrepreneurs. The dreamers, the shakers, the movers and the breakers. We’re going to discuss one of the fundamentals of starting your own business- the business plan. Guiding you through it is a very special guest- meet Corona. She is an adult Pit Bull Terrier mix and she can be yours! Take it away, Corona.
Hi there! My name is Corona and I have been brought here, to this bloggy, to talk to you about creating a small business plan. Let us get down to business.
Why do I need a small business plan, Corona? I know what I want to do.
Building a business is complex. You start with an idea and then you have to turn that idea into something tangible (Corona once ate a dictionary). A business plan is a wonderful resource because once it has been thoughtfully constructed, you can refer back to it as you move through the phases of your business. It can serve as a living anchor- something that adapts and changes to your needs but the foundation of which remains the same. It holds the very core of your business goals.
Who sees a business plan?
There are different types of people who might see a business plan. If you are trying to get a loan for your business, a bank or other investors will need to see your plan. Business partners, maybe some vendors and other associates may request to see it as well. Most of all, you should create a thorough one for yourself and have it ready no matter who the audience might be.
Ok. Fine, smarty pants. What are the elements of a good business plan?
Start with an executive summary. This can serve as an introduction to the business plan or, if you’re planning on showing it to others, it should be tailored to your request. (Ie if it’s for an investor, tell them what you’re looking for.) Other important elements include:- Business Description - How you will profit- - Your Market Overview - Market Share (if applicable) - Pricing - Distribution (if applicable) - Promotions - Competition - Procedures - Overhead (Scheduling and Costs, Development Budget, Personnel etc) - Risk Assessment - Income Statement - Financial Statements
Yes, I do have very smart pants. Thank you for noticing!
For more information on creating a Business Plan, we recommend Quickbook’s Intuit resource center. More details can be found here.
To learn more about Corona, visit her PetFinder page.
RDS Bookkeeping has provided expertise in accounting and bookkeeping to small business owners and individuals throughout Chicago for over 8 years. We serve every client with thoughtful, efficient care and strive to go above and beyond so that you can do what you set out to do- get down to business. Sambuca is our dog.