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Title: Buying An Existing Business Part IV of IX

Written by: Bob Macek

Article Overview: This is the fourth part of a nine part series for buying an existing business. This part is a brief discussion of your small business plan.

Title: Buying An Existing Business Part IV of IX

Your Small Business Plan

A good business plan is clear and concise document and it lays out your goals and business plans.

Every business needs a business plan and every business needs to keep their business plan current. It will serve as your guide to reaching your goals and getting what you want from your business.

A business plan is usually essential early in the process of purchasing a small business.

A good business plan will define your small business’ specific mission and objectives, ownership, market, sales focus, management team, financials, and strategy. Because of the uncertainty involved in the purchase of an existing business, the business plan is particularly important.

At this point we merely set some goals. Later, after zeroing in on the specific business we are buying, a more detailed plan will be constructed.

Taking the time to put your business plan together requires your thinking about how you're going to operate your business and what you want from your customers.

Many business plans have a similar outline and contain similar information about a business, your business plan, however, should be unique to your business.

If you have a existing business selected you may be able to start with the information from the present business owner. In fact there may already be a prepared business plan that will save you much time.

What The Small Business Plan Includes:

Briefly. your small business plan should be broken down into four sections: 1) your description of your small business, 2) your marketing plan, 3) your plan to manage financial affairs of your small business and 4)your plan for management. In addition you small business plan should include your executive summary, all supporting documents and your financial projections.

1. Your Description Of The Small Business:

In this section, provide a detailed description of your small business. Answer the question, "What type of small business am I running" When you answer this question also discuss your market, your products, and services. You should also make clear what makes your small business unique. Remember, however, your small business plan is not cast in stone and may require modification later.

2.Your Marketing Plan:

Knowing your customers is the key to a successful marketing plan. You should know and understand your customer's likes, your customer's dislikes, and finally you customer's expectations. Having this information will help you develop a valuable marking plan.

You should identify your customers by age, income, education, sex, and location of where they live . Again, you may need to modifying the your marketing plan later.

3. Your Financial Management Plan:
Enough cannot be said about managing the finances of your small business. As a small business owner you will need solid financial management in order to make certain your small business remains profitable and solvent. You should always identify and have working policies that ensure that you can and will meet all your financial obligations.

Sit down with your calculator and plan a realistic budget by noting the actual amount of money required to open your small business and the total amount you will need to keep your small business open and running.

4. Your Management Plan:

Your management plan should include a discussion of the following: planning, organizing, directing, and controlling.

Planning can take the form of strategic planning, tactical planning, or contingency planning.

Organizing is the way your organization plans to allocate resources, assign tasks, and achieves its goals.

Directing involves the supervision and help provided to employees in achieving the business goals.

Controlling evaluating and determining if the company's goals and objectives are being met.

The Executive Summary:
You should make certain that this part of the plan well thought out and carefully written. You can expand points previously mentioned above. You might include financial figures from your projections or from your balance sheet. In any case include what you belive is important and should noted to a bank or prospectve investor.

Who To Involve:
During this process of preparing your business plan you should get your lawyer and accountant involved in this process.

Related Articles
  Buying a Business FAQs
  Buy An Existent Business or Start Up Your Own Business
  Buying a Business
  Choosing a Business
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Article Tags: answer the question, business owner, concise document, detailed description, executive summary, financial affairs, financial projections, focus management, good business, management team, marketing plan, reaching your goals, sales focus, small business plan, taking the time, uncertainty



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