What to Keep in Mind When Creating a Business Plan

An integral part of starting a business is creating a plan for it. This will serve as a roadmap that projects start-up costs, profitability, market shares and more. It guides you through each stage of starting and managing the business. It can also help you get funding or bring on new partners and investors.

Two Types

There are two types of ideal business plans: traditional (formal) business plans and lean (informal) startup plans. Let’s go into detail of what they’re about:

Lean Startup Plan/Informal Business Plan

For a quick snapshot of your business, a lean or informal plan is the best option. This is ideal if you want to explain or start your business quickly, your business is relatively simple or if you plan to regularly change and redefine your plan.

Traditional/Formal Business Plan

When looking for investors and partners, a traditional or formal plan is more favorable because it outlines your company’s details, from marketing to financial projections. It also allows investors to gain insight of where their investment is geared.

Key Factors to Remember

Although there are different formats in business planning, some key factors can include:

Introduction – Describe your business and include its name, mission, tagline, vision, logos, etc., when it was established and its location (if applicable).

Company Value Proposition – Describe the industry your business fits into and the latest trends of your field. What demographic does your company cater to?

Management and Operations – Present all owners/partners of your company. Provide any other key information, including your advisory board and key people. Also provide the days, times and location(s) of operation.

Revenue Streams and Costs – Write down your streams of revenue and the prices of your items. Keep in mind that a higher price doesn’t always immediately mean more revenue. A higher price may only attract a handful of people, whereas a lower one might attract a larger crowd.

Financial Plan – Provide details of your personal and business budgets on a monthly basis and use of funds.

Seeking Local Help

When looking for assistance, there are various organizations to consider:

U.S. Small Business Administration (SBA)

Since 1953, the SBA has delivered million of loans, contracts, counseling sessions and other forms of assistance to small businesses. It offers outreach information, including assistance with planning. To contact the Rio Grande Valley’s local SBA, call 956.427.8533.

LiftFund

Assisting RGV’s small businesses with loans totaling over $28 million, LiftFund is a nonprofit organization dedicated to helping entrepreneurs strengthen their companies, stabilize and increase their incomes, create employment and contribute to the economic revitalization of communities. For more information, call 888.215.2373.

Helping with Your Business Efforts

When it comes to incentives for starting your business, the Alamo Economic Development Corporation wants to help you get started! Contact us at 956.787.6622 for more information about our efforts.