Does your Business Need a Business Plan?
One word - yes! We believe every business should create (and utilize) a business plan, whether you’re 1 day old or 25+ years.
A business plan provides structure to organize thoughts and goals related to your business. A plan helps you consider multiple aspects of your business to ensure you’re holistically for today, and the end goal of your company (e.g. selling, passing it to children, etc.). A good business plan will focus your business on the priorities that matter and allow you to eliminate distractions to reach key objectives.
It doesn’t need to be fancy! Even if it takes a few hours to create a two-page business plan, that’s okay! The goal is it guides you and your business. This plan is the foundation of your company.
What is a business plan?
A business plan communicates a clear vision and tells the story of why your company exists, what problem you are trying to solve, and how you will meet your goals.
A solid plan will answer any key questions about your business in an organized structure. You can use it internally to strengthen and communicate your goals and vision to employees, or you can use it externally to get a lease, a loan from a bank or even seed funding if you require capital. Depending on the use of the business plan you’ll highlight a different message e.g. a business plan for internal use will highlight who you are, while a business plan for a bank loan should feature financial soundness.
What information is included in a business plan?
Common elements of a business plan includes answers to:
Why you exist and what makes you different
What services or products you provide (or will be providing) and who you are serving
What market you’re competing in
Including competitive analysis and local competition
What are your goals and financial expectations
How you are going to execute your goals
Including a marketing & sales plan, implementation plan, and investment, etc.
A good business plan will easily communicate to another person or party what it is your business does, how you plan to execute your goals, and how you will measure success.
What plan does your business need?
In short, there are really two types of business plans you can create:
Simple business plan, which will be concise, flexible, and to the point - sometimes called a Lean business plan; versus,
Traditional business plan, which will be meticulously detailed and thorough from start to finish
Simple or Lean Business Plans
(1-3 Pages in length)
A simple business plan should flush out and answer each of the questions from the section above (What information is included in a business plan, etc.). It does not have to be the most aesthetically pleasing document, either! It simply organizes your vision, strategy, goals, and deadlines down on paper so that it can be shared with others to create a unified direction.
Who is this for:
Existing businesses
Businesses that have employees
Business owners feeling struck / distracted / not sure what to prioritize
Business owners struggling to find the narrative to draw consumers
Business owners that need goals on paper to drive accountability
Traditional Business Plans
20+ Pages in length
This plan will dedicate at least 1-2 pages answering your foundational questions. It is meant to convey the strategy of the business to potential lenders or investors and give them confidence about the ability to execute the plan and reach financial targets.
A traditional plan should give the reader confidence that your company can properly handle investment and financing, while ensuring the direction, management and strategy of the company are sound. Additionally, a traditional plan will show detailed financials of all revenue and expenses for 3+ years. Financial projections are broken down by month so the investors knows they have a high probability of the loan being repaid.
Who is this for:
Businesses requesting SBA loans
Businesses getting a loan from another party
Potential lease requirement (depending on landlord)
Start-ups requesting seed funding / external investment
If you need help creating a business plan, reach out to us today. We create and consult on traditional bank business plans, as well as lean / simple plans.