A look at SBA Business Plans

SBA business plans are basic outlines of all the information you would need to include if you were applying for a bank loan.  The Agency does not make loans directly, but does guarantee bank loans for some businesses.  Their main purpose is to provide information and education.

You start out by describing the business.  At first glance, the format seems to presume that you are already operating successfully.

It can be used by owners that are looking for expansion funds, but it can also be used for start-up funds.  You will just need to do some research in order to fill in the blanks.

The first section includes a description of what the company does or will do.  You will need to include your plans for marketing or advertising, as well as an estimate of how much those efforts will cost.

Researching the competition is another necessary aspect of creating the plan.  If there is a great deal of competition, you need to be able to show how your company will differ.  If there is no competition in the area where you intend to open, you have something going for you.

Additional information to be included in business plans for small business are the operating procedures you plan to use, the number of personnel you will need to hire and the types of insurance you will need to buy.

All of those things have price tags attached to them.  You will need to be able to show when you expect to break even and when you expect to make a profit.

The projected annual summaries will require some work.  You will need to come up with month-by-month details for the first year and quarterly projected P&L statements for the following two years.

You will also need to provide evidence that you didn’t just pull those figures out of the air.  Business plans for small business require a bit of research in this area. Research is one of the things that consultants charge for. But hiring a consultant could be too expensive.
 
There are about a dozen software programs that will help you create a good plan. Some include research about popular businesses, such as restaurants and beauty salons. The programs cost a lot less than hiring a consultant and could provide all of the information that you need to finish your SBA business plans.  Still, it’s a good idea to visit the competition and talk to the owners.

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