Writing an Effective Business Plan For Your Small Business

Plans are Useless; Planning is Indispensable

“Plans are useless; planning is indispensable,” according to Dwight D. Eisenhower, then Commander of the Allied Forces in Europe during WWII. Now, you may be in total agreement with the first part of that statement, but you are really not convinced of the truth of the second part.

At this point, you may be tempted to skip writing a business plan altogether, viewing it as an unnecessary exercise in jumping-through-the-hoops, suggested by some old business professor who probably never held down a “real” job anyway. Maybe it’s okay as an assignment for an MBA class, but it would be just too confining and irrelevant for today’s fast-paced business environment. Anyway, you’re ready! You’ve thought about this business venture for a long time and talked it over with friends and everybody agrees it’s a great idea. Best to strike while the iron is hot!

Press for Success

Far be it from me to dampen your enthusiasm, but you should give yourself every opportunity for success. That’s what the planning part of the process of creating your business plan will do. By the time you have pressed your way through it, you will not merely have some neatly arranged document to keep on file, you will have a working tool that addresses the essential factors that influence your future.

Besides, your friends may be 100% behind you in your new venture, but, in case you are hoping to involve others who have actual money to invest, you may need to be able to make a convincing case. Wouldn’t it be nice to have anticipated possible questions and be ready with plausible answers? If you are risking your own money, that is perhaps even a stronger reason to do some indispensable planning.

Easy Writer

If you are one who is intimidated by the blank page, never fear! There are several good software packages that will guide you through the process, such as Business Plan Pro Complete from PaloAltoSoftware. Business Plan Pro Complete walks you through the entire planning process and generates a complete, professional and ready to distribute plan with a proven formula for success. The planning wizard makes it a snap to get started since you simply answer yes or no questions to create your custom business plan framework. Bplans.com offers free business plan samples and how-to articles as well as a wealth of other information. It is definitely worth taking the time to checkout. Microsoft Office Online Templates also has a variety of free templates to use with their products. The wizard indicates the information you need and you fill it in as you go.

You may find that the easiest part is the actual writing of the plan. The real work comes in the data-gathering, which may take you a hundred hours or more, depending on what you already know or have researched. If your new venture is in an area where you’ve been working, you may already know about your customers, your suppliers, your marketing plan, your organizational structure, your financial and cash flow needs, equipment, inventory, and so on. If you know all of these except for Marketing, say, then this is where you will need to invest some time and effort. You can find a wealth of information by utilizing the traditional data sources such as chambers of commerce, major cities’ websites, trade associations, the US Census Bureau, trade journals, magazine and online articles and advertising, etc. Performing keyword searches on Google, or Ask will bring up websites to check out. Following are some places to start:

  • James J. Hill Reference Library (jjhill.org): One of the nation’s premier business libraries to bring you FREE and affordably priced tools and resources you can use to create a better business plan based on relevant and credible data.
  • U.S. Census Bureau (census.gov): A source for a variety of useful statistics, especially the Economic Census that comes out every 5 years.
  • American Demographics (adage.com/americandemographics): Just as the title suggests, numerous free reports about consumer demographics in the U.S. nationally and by statistical area.
  • Internet Public Library – The Census Data and Demographics (ipl.org)/: An especially useful site that has links to information about countries other than the U.S.
  • Corporate Information (corporateinformation.com): Features information summaries on over 350,000 companies in the U.S. and abroad for competitive analysis.

You can find a variety of companies online to help you with your market research. For example: Sundale Research’s (sundaleresearch.com) primary goal is to provide new and mature businesses with objective, accurate industry data and market analysis on a wide range of topics. Their market research is intended to save you time and money while keeping up with industry trends.

But your idea may be so new that you may also need to talk to potential customers, host some focus groups, talk to an ad agency, or maybe even make a prototype and float it past some people. Be prepared to spend the time. Remember, it’s not about the Plan but the Planning.

Build It on Paper First

Whether you decide to use business plan writing software or to just follow this guide and create your plan with your word processor, here are the sections of a good plan and the questions that need to be addressed:

  • Cover Page – Show the name of the company, your name, and the date.
  • Introduction – What is the name and address of the business? Who are the principals, their titles, and their addresses? What is the nature or purpose of the business? What is your launch date? How much start-up and/or operating capital is needed?
  • Executive Summary – One to three pages that summarize all the information to follow; come back and write this last.
  • Industry Analysis – How does your product or service compare with what is currently on the market? What is the trend in the overall industry? What have been the total sales in this industry over the previous 3 to 5 years? What new products or technologies have had the biggest impact on this industry recently? What is the future outlook for these and what trends are emerging? Who are the competitors, where are they located, and how are they doing? What advantage do you offer over them? Who is buying this product or service now? Describe the typical customer for this product or service. Are there emerging markets or market segments? Where does this product or service currently perform best? Possible Data Sources: trade associations; trade journals; attorneys & accountants dealing with the industry; industry salespeople; state business websites; focus groups.
  • Description – What product(s) or service(s) are you offering specifically? Are any patents, copyrights, or trademarks needed? Have they been acquired/filed? What is the size of your business? Where will it be located? Will this require purchasing or building a facility? Will this require leasing a facility? At what cost? Has a lease been negotiated? What personnel will you need? Where will you find suitable employees? What equipment do you need? Will it be purchased or leased? What are the qualifications of your principals? How do their backgrounds promote the success of this venture? Why do they think this will be a successful venture? Possible Data Sources: local Chamber of Commerce; community colleges & local universities; local employee leasing company; real estate agents; US Patent & Trademark Office; US Copyright Office.
  • Production Operation – If a product must be manufactured, what is the process? Will the work be done on-site or subcontracted? Who are the subcontractor(s)? If on-site, what space, equipment, machinery, production employees are needed? What suppliers are needed? Who are they? How will quality be assured? What is the anticipated production output? What established credit lines do you have? Possible Data Sources: local Chamber of Commerce; yellow pages; trade associations.
  • Service Operation – If a service is offered, describe it. Will the work be done by company personnel or subcontracted? Who are the subcontractor(s)? If on-site or in cyberspace, what employee qualifications, equipment, and technologies are needed? How will quality be assured? What performance levels are anticipated per employee? Possible Data Sources: local Chamber of Commerce; yellow pages; trade associations.
  • Marketing – How is the product or service priced? How will it be distributed? How will it be promoted? Will it be promoted by the venture or an outside agency? What agency? How have you determined what amount to set aside for marketing? How have you determined product or service forecasts? Possible Data Sources: on-line searches; Amazon; local outlets; trade journals; industry attorneys & accountants; salespeople.
  • Organization
  • How is the business structured? Who are the principals and the principal shareholders? What authority does each principal have in the venture? What are management’s qualifications? What is the job description for each position? What does the organizational chart look like? Possible Data Sources: on-line templates for job descriptions & organizational chart.
  • Risk Assessment – What weaknesses are inherent in this venture? What vulnerabilities face this type of venture? What impact will these have? What new technologies may affect this venture over the next 1 to 3 years? What contingency plans are in place? What level of liability insurance is required? What does it cost? Who is the carrier? Possible Data Sources: trade associations; trade journals; Service Corps of Retired Executives (SCORE); industry salespeople; customers; focus groups.
  • Financial Plan – What is the anticipated income? What are the cash flow projections? What is the anticipated budget over the next 3 years? What is the break even point? When is it anticipated to be met? What funding is needed and where will it come from? What funding is currently available? What collateral is available? What is the net worth of the principals, if applicable? Possible Data Sources: accountant; accounting software; Small Business Administration; Small Business Development Center; SCORE; banks; venture capitalists.
  • Appendix – Resumes of principals/management; letters of recommendation from current business associates/customers/suppliers; marketing research data; demographic data; leases or contracts in place or as promised; business licenses; price lists from suppliers; trade or industry articles or data; floor plans; information on subcontractors; liability insurance policies.

Impress for Success – Now you have to admit, this is going to make an impressive package! Put it in a binder and you have built something to be proud of – the first of your many business accomplishments. Your potential investors will appreciate the depth of your analysis, but this tool will prove helpful in describing your venture to your employees, customers, and suppliers, as well. After you have been up and running for a few months, you will find that the planning that you have done will sensitize your inner “business compass” and allow you to flexibly adjust to contingencies. And that is indispensable!

In Summary

Planning out your business on paper first gives you long-term benefits with potential investors, employees, vendors, and suppliers. The business plan becomes your roadmap to success, with pertinent data that shapes the course of your business start-up and lets you adjust your journey as contingencies arise. Business planning templates are readily available and data sources abound at your fingertips. You will achieve a solid understanding of your business as you work through each section of your plan.

IMPress Action Checklist:

Below is a list of the steps that will help you put together your business plan. Check off each step as you complete it to keep track of your progress.

  1. Purchase business plan software or download a template
  2. Read over the business plan sections to decide what data you have, what data you need
  3. Gather data via the internet, phone interviews, print material
  4. Fill in the plan’s sections
  5. Write the Executive Summary
  6. Print and Bind Your Plan

5 Top Promotional Products for Your Business

Promoting your business is a 24/7 job in itself. One of the top ways of business promotion is by giving away products that will remind the customer of your business. The products will also market your business. The following are examples of promotional products; shirts, hats, sweatshirts, pants, pens, mugs, glasses, pennants, stickers, key chains, and calendars. The company’s main task in regards to promotional products is to get the company logo on everything available. Below are the Top 5 best rated promotional products to market your business.

#1: T-Shirts

T-shirts with the company logo on it is a great way to attract customers and build your business. Potential clients and current customers will see the logo and understand what line of work you are in. If the logo stands out the people will always remember it, and keep it in mind when they want to hire the business’s services. It is also a good idea to give customers or potential customers free t-shirts that represent your business. People love free merchandise and when they wear the shirts, other people may ask them a question about the business. In reality your customers are advertising for you without even knowing it. This creates a lot of exposure and popularity for your business.

#2: Hats/Caps

Hats or ball caps with the business logo on it can be a very rewarding promotional product that will help market and expand your business. Large quantities of people enjoy wearing caps or hats. Giving away hats to customers or potential customers will help the business. As stated above, the business owner can wear the hat and also give them out to current or potential customers. The customers can wear the hats or caps. Wearing the hats will have potential customers ask questions about the business and what the business does.

#3: Writing Pens

Writing pens can often be overlooked, but if the business logo is a powerful image the pen may be a great business product. Pens are very cheap and can be given out to family, friends, customers, and potential customers. The pens, just like the hats or shirts, will market your business in a positive way.

#4: Calendars

Creating business calendars can cost a lot, but also can help the business gain a lot of customers. The business can put their logo on the calendar and also offer special coupons that can be cut out of the calendar. The business can offer coupons during various months of the year. Not only will this method gain business, but it will also gain business during slower times of the year.

#5: Mugs/Glasses/Bottles

Many people drink beverages during the day and night. Businesses can benefit by putting their logos on mugs, water bottles, and drinking glasses. Many people will see the logos and begin to inquire about the business services.

Closing:

Running a business is a 24 hour a day, 7 day a week lifestyle. Sales and marketing is always the focus point of any business. By using these simple promotional items, you can cut your marketing budget in half and watch your business grow.

What Is Content Marketing? How Can It Be Related to Your Online Business?

Many businesses today have started relying on content marketing to attract and engage their target audience. According to the Slide Share and Column Five media reports, businesses are spending a quarter of their budgets on content marketing. And this is because of the kind of value that content marketing adds to your business. For the obvious fact that many people rely on Internet to get information, businesses can benefit from content marketing by providing information related to their specific business.

Most used content tools: Content marketing offers you many tools, which help you market your business online. Some of the common ones are blogs, articles, press releases and white papers. You can choose the right kind of tool as per your purpose of marketing to build brand awareness or to generate traffic or leads or to drive sales. You can even use a mix of these formats, depending on how each format is able to meet your goal.

Content compliments your business: The main idea behind content marketing is to share knowledge particular to your business to help purchase decision-making. It also includes sharing expert ideas, opinions and information related to your business and industry.

You can create two types of content for your business – content for website and landing pages (direct promotion), and informational content (indirect promotion).

• Developing content for your website and landing pages: Creating content for your website is a kind of direct promotion, as your web pages need content that exclusively describes your organization, operations, products and services. The content for website includes business description, product/service description, meta tag descriptions, titles, snippets, etc. This will help your website create positive impression as well as to engage and persuade potential customers.

It also involves creating content for landing pages and ads (banner, pop-ups, text ads), with the business/industry specific keywords. Good content with adequate keywords is an essential aspect of website development and helps you maximize your visibility in search engines.

• Developing content for creating awareness: By creating content on a range of topics related to your business, you are indirectly creating and spreading awareness on your products/services. This informational content for your business is generally used for your website’s blog and resource center.

For instance, if your business deals with selling of a specific software and your content marketing strategy involves creating articles related to features of the software, check list for buying the software you provide, benefits of purchasing the software, statistics on the usefulness and purchase of your software, white papers on your software industry, etc. Any potential customer is attracted and impressed by the information given by you, will be definitely interested in doing business with you.

Blogs, articles, press releases, white papers related to your business have more credibility: The USP of content marketing is that it builds credibility of your business by gaining trust of your target audiences. This is because people rely mostly on industry experts’ opinions, tips and suggestions for their information needs. According to Custom Content Council, 90% of the customers agree that custom content is useful and 73% of the people prefer collection of articles to know about the organization, rather than traditional advertisements.

Having said that, let us see how content tools help your business to build credibility.

• Blogs and articles: Blogs and articles have content that gives all the functional and useful information about your products/services to your customer. You can even share your business experience in the form of opinions, ideas and suggestions through blogs and articles. If any of your targeted audience is in dilemma about the products/services you offer, blogs and articles will help him clear his doubts and understand your business well.

• Press releases: Press releases contain promotional content about your business. You can share developments, achievements or any other news related to your business through press releases. Press releases make your customer know all the latest updates about your business and also build trust for your business.

• White papers: White papers, the research reports based on thorough analysis made by business experts, have great value. Generally, customers rely on this kind of content to make crucial decisions regarding making purchases or adopting strategies.

Hence, creating content specific to your business and then marketing it will yield reliable and long-term customers.

List your content at right places: Having a right content plan is as important as having content. Unless you know where to display your content, you cannot achieve the purpose of your business – building awareness, customer acquisition, increasing ROI, etc.

You can market your content online using many marketing strategies like displaying your content in article directories, industry specific forums or Q&A sites, in your websites, etc. These are the places, which have high potential of getting the initial customer attention when your content is posted.

But before you finalize on where to market your content, here are few important things which you need to consider.

• What are the sites that your target audiences visit frequently to find the content?
• What are the sites which help in fast spreading and promoting of your content?

The more credible and popular sites you consider to promote your content, the more is the traffic and credibility you gain for your website.

Cost-effective: Of the all Internet marketing strategies, content marketing is a cost-effective one, which generates good value for your budget spent.

Content marketing is one of the neglected ways to promote businesses, though it is an effective way to spread awareness and drive sales.