Every business starts with a plan, whether it is one mapped out in your head, jotted down on a paper napkin or formalized into a business plan. A business plan essentially describes your company, what you plan to do and how you plan to do it. It expresses your company’s objectives, goals, strategies, potential problems and how to address those problems, and what it takes financially to run your business.
According to data gathered by Clemson University entrepreneurship professor William B. Gartner, you’re two-and-a-half times more likely to start a business simply by writing a business plan. Business plans serve a number of purposes, which can dramatically impact how robust your plan is or what it contains. Mostly, business plans are used to convey your vision to potential investors in order to attract funding and prospect for new business. They also help to understand how to manage your company better by getting everyone on the same page and think through the viability of a business. Many entrepreneurs put their ideas on paper, run it by a mentor to see if it has legs, and adjust and modify it from there.
There are two primary types of business plans, and while they have technical names, an easy way to think about the two is the traditional business plan versus the one-page business plan. There are merits to both, but if you’re looking for investors, go with the more traditional business plan. These tend to be about 10-15 pages, on average, and they provide a deeper level of detail about your company. If you merely want to get everyone on the same page or have a place where all your thoughts are put in one place and have something you can quickly update as your business cycle and learnings change, a short, one-pager could be the way to go.
When first starting a business, estimating your revenue potential, your product’s price point or even identifying and quantifying the risks and opportunities your company will face can be a huge challenge -- especially if you don’t have customers yet. It can also be hard to determine how much capital you will actually need. Don’t be afraid to seek guidance from others who have been there or done that. Involve your mentors or even potential investors. Often, they know what it takes to succeed and can provide a much more accurate picture of what your expectations should be starting out.
When planning the next step in your business plan, or even just starting out, SA Capital Partners offers insight you can only acquire over years and years of work with the lower middle market. Let our experience be your cheat sheet to a better business plan and more secure future!
About SA Capital Partners: SA Capital Partners is an innovative financial services firm that specializes in mergers & acquisitions advisory and capital raising for lower middle market businesses. We aspire to give all the tools necessary to complete any transaction. SA Capital Partner’s financial services industry specialists provide comprehensive, integrated solutions to banking transactions. Our breadth of services and industry knowledge allow us to understand each client’s unique business needs. Our goal is to make all financial services available to every small business. Website: www.sacapitalpartnersllc.com Phone: (212)-235-2761 Email: info@sacapitalpartnersllc.com #sacapitalpartners #sacapital #sacapitalpartnersllc
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