Do you know the essential elements of an SBA business plan? The U.S. Small Business Administration (SBA) helps business owners walk through the steps of researching, planning, funding and launching a business. Their business plan guidelines set a strong foundation that can help a new business (or expanding business) toward success – and the essentials they suggest help efficiently create a plan that includes everything to guide your business.
SBA Business Plan Essentials
1. Executive Summary: This section should explain what your business is and why it will be a success. Your mission statement, products/services information and leadership team should be included.
2. Company Description: You can go more into detail in this section, describing how your business will help your customers. What makes you different? Include that here.
3. Market Analysis: What is your target market and industry? Your research will show you what other businesses are doing. Discuss trends in this section, and show how you can do things better than others.
4. Organization and Management: How will the company be structured? Who will run it? Explain the legal structure as well as the organization/hierarchy of the company. If you have resumes and job descriptions of your key players, you can include those as well.
5. Service or Product Line: What products or services will you offer? How do they benefit consumers? What is the product lifecycle? Discuss any copyrighting or patenting you’ve done or your plans to do so.
6. Marketing Plan: There are many ways to approach marketing – discuss your strategy to attract and retain customers.
7. Sales Strategies: How will you achieve sales? Talk about what happens, because this information will help your financial projections.
8. Funding Requests: You can discuss your funding requirements, and your plans (like bank loans, grants, investors, etc.). All businesses need funding, so be sure to plan for equipment, salaries, and other bills. Explain where that money will come from and what it will be used for.
9. Financial Projections: When making a funding request, you should also have your financial projections to show you’ve thoroughly thought out the future and stability of your business. These projections should be made over three to five years. If this is a business expansion, you can include income statements, cash flow statements and other financial records. If you have collateral you can put against a loan, list it here. Include your forecasted income statements, capital expenditure budgets and balance sheets. You can use graphs and charts in this section.
10. Appendix: Include any supporting documents in the appendix. You can include documents like credit histories, resumes, product data sheets, letters of reference, patents, legal documents, deeds or leases, and anything else that was or will be requested.
These elements can help make your business plan a document you can use to get funding or build relationships with other businesses that can help you get started. Get help creating an SBA business plan from the experts at Bargain Business Plan. Contact us today to discuss your business plan needs.