| Resources
U.S. Small Business Administration Florida Small Business Development Centers |
A carefully crafted business plan includes a concise one-to-two page executive summary followed by detailed descriptions, generally 25 to 60 pages, of the business and marketing strategies, management information and financial data. The plan should include detailed supporting documents, such as three to five years’ tax returns, lease agreements and other legal forms and documents.
» 10 Steps to a Business Plan
» Begin with a cover sheet that includes the name, location and telephone number of the business and the name of the person who wrote the business plan.
» Keep it short and crisp without compromising the description of the venture. Include a one- or two-page executive summary with an overview of the most important issues in the plan — including the business’s niche, marketing, management experience and finances.
» Organize it with a table of contents that shows logically arranged sections and appendices.
» Identify a target market in the plan. Indicate whether the market is growing, steady or shrinking. Provide extensive details about competitors, including their strength, weaknesses, estimated market share and other details. Include your pricing strategy. Finally, explain how you plan to promote the business.
» Explain the benefits of your product or service to the user or customer. Describe how it is unique and its appeal to customers. Include information about your business’s location, current and future space requirements and area demographics.
» Show that you have an effective management team. Detail the backgrounds of executives, their qualifications, the need for additional management talent and how the owner plans to attract personnel.
» Focus the plan toward the future. Attempt to develop forecasts of industry trends over the next three to five years.
» Highlight current and potential problems and demonstrate how they will be overcome. This will enhance your credibility.
» Develop a financial plan that includes a capital equipment list, a balance sheet, income statements for three years (or pro-forma income projections for a new business), cash flow statements, break-even analysis and loan applications.
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 Sean Doughtie, Taproot Creative, Tallahassee [Photo: Ray Stanyard] |
» By the Book
Sean Doughtie took a leap of faith when he launched his Tallahassee graphic design, communications and new media firm, Taproot Creative, four years ago. He had little money, a stay-at-home wife, one child and a baby on the way.
Like many business owners, Doughtie was skilled in his craft, with 12 years experience, but he didn’t have a lick of formal training in running a business. “It was all based on gut instinct,” says Doughtie, adding, “At night, I was trying to read business books and learn accounting.”
Doughtie quickly learned that he needed a business plan in order to qualify for the small line of credit he needed to buy equipment. Because most communications firms are privately held, he says it wasn’t easy to get much of the market data. But Doughtie, now 33, gathered what he could about his competition, identified holes in the market and explained what he wanted to accomplish and why. He got the funding, paid it back in less than six months and has continued to grow the business using the business plan as his guide. “Every December I sit down and I review my business plan,” says Doughtie. “I make a budget and I look at what I need to do to increase profits.”
Doughtie’s conservative management — and a bit of good political luck along the way — have allowed him adapt to changing market conditions. He worked on Gov. Charlie Crist’s gubernatorial campaign in 2005 and that garnered him a cadre of political clients. A majority of his clients, though, are small and medium-sized businesses that use public relations and social media to get their message across without spending a lot of money. Doughtie’s challenge now is to convince larger corporate clients that his firm has the goods to compete. “We’re positioned now to be more aggressive,” he says. “I think we’re on a good trajectory right now.”