Should you create a small business plan?

Would you like to start a small business? If you have the desire to become a small business owner you must be able to learn how to create a small business plan as it will aid you tremendously when you ask lenders for money. What if you don't need a loan and you are planning to take care of things with some of your own money? Even if this is the case, you still need a small business plan. It helps to show others that you are operating a legitimate business and when you apply for a business license, it can also come in handy.

One of the great things about a small business plan is that you can also turn to it for other needs as well because it is like a roadmap for the company. It really is a work in progress and helps your business to see where it is headed and where you came from. You will be able to add to it over and over again and it can really help you with a number of things from hiring to balancing your account.

So what are the things that need to be included with a business plan? There are several things that will go into your business plan but here are some of the basic components of a business plan:
- Executive Summary - this is used to provide a brief synopsis of the company. Typically you will list information about the history of the company along with the future of the company. The executive summary doesn't need to be long because you will cover the points in other areas of the business plan at a later date.
- Market Analysis - the market analysis will show lenders and others that you have a large customer base to work with. They want to see that you have taken the time to really research your market and that you have a plan to promote your products to them and really generate some income.
- Company description - it is vital that you list the company description so the lender can understand what exactly it is that you do. You will have all of the information about the marketing and all the various areas of the company and how they will fit together.
- Management - a great way to acquire funding for your business is to promote the people that are working for you. A lender wants to see that management structure for the company and they want to see how the various departments will communicate and other things. Clearly lay out the management team and list the job duties as well.
- Marketing plan - it is important that you create a marketing plan and list it with your overall business plan. The marketing plan will be able to show your lenders how you plan on announcing your company and products to your niche market. Your marketing department is one of the critical elements to making a strong company and you need to make sure you are creating a solid plan. This is somethingyou will likely return to several times in order to update it with new things. It's a great roadmap to have for the company.
- Product information - what are you planning to sell? Your small business plan must include product information in order to describe what it is and why your customers want it. You may not need to go into extreme detail about them but list enough information that shows what the need is and how your product will fulfill that need for the customers.
- Financials - always list the finances for the company as this helps lenders to see what you really need from them to get the business up and running.