All small businesses need a business plan. Most don’t need Profit & Loss statements and multi-stage expansion projections, especially when starting out. You just need something that will fit on the back of a cocktail napkin, and explains briefly what your business does, who your intended customers are, and how you propose to reach them. Plus, as a “scorecard” of sorts, you should look at your current income, and set a goal for the next year. Below is a sample (and simple) outline.
___(1)___ is a ___(2)___, engaged in ___(3)___. We specialize in:
- ___(4)___ for ___(5)___
- ___(6)___ for ___(7)___
- ___(8)___ for ___(9)___
This year we are on track to make ___(10)___. Next year, our goal is to make ___(11)___, with a ___(12)___% profit margin.
We will reach out to our target markets by ___(13)___ ___(14)___ and ___(15)___.
Here’s what the numbered spaces mean:
1 = business name
2 = type of business (DBA, partnership, LLC, etc.)
3 = general business description
4, 6 & 8 = specific tasks or jobs
5, 7 & 9 = specific target markets
10 = gross income in $ for this year
11 = gross income in $ for next year
12 = profit margin for next year’s goals
13, 14 & 15 = specific marketing tasks
Let’s look at a couple examples:
Joe’s Garage is a DBA, engaged in fixing cars. We specialize in:
- regular maintenance for careful car owners
- drive train repairs for people who have broken down
- minor body repairs for drivers who have had minor accidents
This year we are on track to make $25,000. Next year, our goal is to make $50,000, with a 10% profit margin.
We will reach out to our target markets by sending direct mail pieces, using social media and partnering with local insurance agents.
* * * * *
The Knitting Corner is an LLC, engaged in selling knitting supplies. We specialize in:
- sourcing wool yarns for knitters who care about quality
- stocking quality yarns for knitters who care about quality
- providing knitting lessons for women who want to learn to do complex projects
This year we are on track to make $100,000. Next year, our goal is to make $125,000, with a 7.5% profit margin. We will reach out to our target markets by creating a knitting club, establishing a referral program and advertising on AM radio.
The last sentence of the plan is actually the basics of your marketing plan, shoehorned onto the napkin. This should be fleshed out into a complete marketing plan. Again, this really won’t take much more than the back of another napkin. It’s a simple, step-by-step outline of who your target markets are, and how you plan to reach them.
I hope this gives you a good idea of how to create your business plan!
