The Purpose Of A Small Business Plan

A small business plan is a document that serves two purposes. The first one is that, it acts as a reference document for the business owner to keep track of the operations of his enterprise. This is because, as time progresses, the owner is able to counter check the achievements of the enterprise against the objectives that were initially indicated in the business plan. He is therefore able to determine whether he is on the right track or what amendments need to be made.

The second purpose of a small business plan is that, it can be used as a tool through which a business owner can seek for funds from donors. A well presented document that captures both long and short term goals normally has high prospects of fetching good funds. The details of what the business is all about and what it hopes to achieve should be captured in detail. The document also contains other contents which may be classified into four major parts.

The first one is the description of the business, which captures the name, location, contact details and a brief summary of the field in which the business operates and how it carries out its operations. The other section is the one that captures the marketing plan. This shows how the business links its clientele to the services or goods that the target market is looking for. In addition, the marketing plan also describes how competitors are handled.

The other section captures the financial management plan, and the most important bit in this section is the budget. The budget definitely captures the income and the expenditure of the same. This is then followed by a brief justification of the expenditure. The fourth bit is the management plan, which shows who is answerable to whom in terms of power and authority.

Tagged with: Business • Plan • Purpose • Small

Filed under: Small Business Plans

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