Key Components of Every Small Business Plan

Posted by Karen Erdelac on Apr 18, 2016

Key Components of Every Small Business PlanHaving a well thought out business plan can determine the success, or lack thereof, of your business.  There are many core components that every business plan needs.  Making sure that you have a comprehensive plan and vision for your company will help you to stay organized and maximize profits.  Although business plans will differ from business to business, there are certain pieces that every company will want to include. 

Budget

Having a properly maintained budget will take your business right to the bank if you have your ducks in a row. Why are budgets so important to businesses? For one, it tells you what is currently going on in your business. From aspects such as cash flow to Accounts Receivable and Payable balances, your budget should always provide an accurate record for you to refer to. Budgets are not just for the present though. Using budget analysis can help you avoid seasonal pit falls, and help predict when are the best times for your business for things like investing and renovations. Having a budget that is balanced will help ensure the present and future of your business.

Mission Statement

Your mission statement is something that you will refer to for years to come as a way to remember what your goals are and get yourself back on track anytime you may stray from those goals.  It will keep you focused on the steps you need to succeed.  A well written mission statement will tell consumers exactly what your business is about as well as the core principles and values that are important to you and your company.

Product Descriptions

It is important to let your potential customers know exactly what your product or service is and how it will benefit them.  Painting a clear picture will help consumers to decide if your company is what they are looking for.  You want to speak about your product or service from the perspective of what it can do for the consumer and why they need it.  Knowing exactly what a product or service includes provides a level of comfort to potential customers and can aid in credibility.

Differentiators

Letting customers know what sets your company apart from the competition can be a determining factor in the choices they make.  If your product or service offers something special or different, be sure to make that well known.  If there isn’t anything that really set your business apart, this is something you will need to address.  Differentiators are what will cause clients to lean in your direction when considering multiple solutions.

SWOT Analysis

Key Components of Every Small Business PlanWhat is a SWOT analysis? It is a tool that can help you determine the strengths and weaknesses that are often internal to your organization and opportunities and threats that generally relate to external factors. When creating the table you can find out things about your business and industry that will help you stand out and become more resilient to changes that are always taking place in the business world. For example a threat to a small clothing store might be that there is a lot of competition in the market. An opportunity is that a small store might have better means to create something personalized for their customers in a way big chains cannot. Those are outside factors. A strength of a small clothing store might be that you will spend less budget on employee expenses since you do not need a substantial staff. A weakness would be establishing an online presence for ecommerce would be more challenging if you are not tech savvy. There are countless ways SWOT can help you get your business on track and stay there.

Marketing/Advertising Plan

Getting the word out about your business is of high importance if you want to build your company into a sustainable business.  There are many avenues that a business can take to market and advertise.  Choosing which methods work for your line of business and having a strategic plan to implement those methods can make or break your company.  Having a clear goal and a plan to accomplish that goal will help to maximize your marketing dollars. 

Back-up Plan

Quikstone Capital Solutions has a proven track record of working with small businesses to help them achieve their goals.  Having a company that can offer consulting services and the funds needed to improve and sustain your business is of vital importance.  Quikstone Capital Solutions offers merchant cash advances that are much faster and easier than traditional bank loans.  Whether your company is looking to renovate or in need of cash in a pinch, a merchant cash advance can help.

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Topics: Merchant Cash Advance, Small Business