Small Business Plan and Strategic

A business plan is a formal statement of the business goals, their justifications and the procedures planned to be undertaken to achieve those goals. It sometimes also contains information about the organization attempting to achieve those goals. These are called externally focused business plans as the information about the organization or the team attempting to reach certain goals will be important to external financial stakeholders. Internally focused business plans deal with intermediate goals required to reach the external goals.

They may focus on the development of a new product, a new service, restructuring of the finances of the company or a general restructuring of the organization. However business plans may attach importance to changes in perceptions and branding by the customer or client or a larger community. The business plans where these changes in perception and branding are of prime importance are called marketing plans. Business plans may typically focus on the financial goals of the business but non-profit goals such as service goals for the benefit of the community may also be included in the plan. Operational plans, also called the project plans describing the goals of a particular project, working group or department are sometimes treated as a part of the business plan as these goals are within the organization’s or company’s larger strategic objectives.

A small business plan can be treated as a plan for setting up a small business unit, mentioning in detail their goals, the procedures to achieve those goals and information about the organization or company to achieve those goals. The business plan for a small business is the roadmap for its success and should be made in accordance with careful planning and supervision. Small businesses are usually set up by entrepreneurs who may be confused by the extensive planning process required. Writing of the business plan becomes critical at this juncture which may help in realizing the true potential of the small business. Writing of a business plan forces the individuals or entrepreneurs to objectively develop and evaluate tactical and strategic plans, taking into account the opportunities and risks involved. Most importantly, writing of business plans includes the strengths and weaknesses of the business, the nature of competition faced from prospective business rivals and the identity of the customers of the product concerned and whether it will be able to cater to their expectations.

A small business plan should effectively consist of a statement of its business goals factoring in the importance of changing tastes, perceptions and branding by the clientele or a larger community which come under the ambit of marketing plans for the small business. Small business plans may be externally focused or internally focused. While externally focused business plans target goals important to the financial stakeholders of the company like the investors, internal small business plans are a bridge to the external goals and focus on the development of a new product or a new service, or a general restructuring of the company including that of its finances. Internal business plans is often developed in conjunction with a balanced scorecard and a list of critical success factors which allows the success of the plan to be measured by using non-financial measures. Small business plans will include both the financial goals of the company as well as non-profit goals (in case of government agencies) such as service goals for the benefit of the community at large. External stakeholders for non profit agencies include the donors towards the small business and the clients of its services. Operational plans are sometimes included as a part of a business plan and which will describe the goals of an internal organization, working group or department.

Setting up a small business constitutes the essential feature of raising money for the business by availing of a favoured line of credit for the business. Various advantageous schemes for small businesses have emerged across the countries of the world. Cheap bank loans with low interest rates can be effectively availed of for setting up small businesses. Line of credit gives an entrepreneur the staying power until the small business is successfully generating the profits. Money gives the power of expanding the business, reaching to far-flung customers and good advertising of the product. A brand agency, responsible for creating the brand image of the company can help the company grow in this aspect and raising equity by venture capital will also be useful. Venture capital is private equity capital provided by outside sources such as investors to finance a new or struggling business. Apart from strategic planning, which includes the optimum allocation of human and physical capital, and certain marketing plans, small businesses run by entrepreneurs have to set up their own retirement savings plans after the business is shut down.

With the need to continuously evolve and adapt to the emerging global environment, small businesses have to change their business plans and objectives for survival. Many small businesses have to change their planning strategies and marketing plans in the wake of stiff competition from large global companies who can reap the benefits of economies of scale and produce cheaper and quality products. Thus many financial management companies give online small business solutions which can help create an effective business plan prepared by leading business professionals.

The links to the financial solutions websites are given as follows: 133americanexpress.comTeneric.co.uk

The US Small Business Administration (SBA) is a valuable resource for small businesses in the USA which provides useful tools such as the financial planner and business management tips.