Writing a 2023 Business Plan for Your Business in Marshall, Texas
Wednesday, February 01, 2023
It’s that time of year, a time for business owners and startups to create plans to develop a successful business. Entrepreneurs who write formal business plans are 16 percent more likely to achieve viability than entrepreneurs who don’t make a business plan, according to research conducted by Harvard Business Review. Plus, The North Texas UT Tyler-Longview SBDC—which operates an office right here in Marshall—can help you develop your business plan at no cost to you!
What Is a Business Plan and Why is it Important?
A business plan is like your company’s resume. It explains your business as a whole by identifying your objectives. The plan not only helps in keeping you committed to growing your business, but it also shows potential employees, investors, and business partners that you are 100 percent dedicated to developing your company. Creating the plan involves studying market research and financial projections in order to start producing strategies that will further your business. A business plan is made up of a pro forma balance sheet, cash flow analysis, and income statement.
Overall, a business plan can be used to help effectively allocate resources, handle unexpected obstacles, and make sensible decisions for the company. It is imperative to submit a business plan with loan applications because the plan provides information about your company and how you will eventually repay the borrowed money. The plan document should be updated every year as your company changes and expands.
Outlining Your Business Plan
The guidelines below will assist in making your business plan. Following these steps can make drafting the plan easier.
● Describe in detail the background and goals of the business.
● List ownership details of the business, plus the legal structure.
● List your own unique skills and experience that help with the business.
● Discuss the advantages your business has that competitors do not.
Promotion and Marketing
● Describe your company’s products and services.
● Target customers that have demand for your product or service.
● Find your market, its size and locations.
● Describe how your product or service will be advertised and marketed.
● Describe the pricing strategy.
● List the sources of your startup investment funds.
● Write out a monthly operating budget for the year.
● Provide the expected profits and total revenue for the first year.
● Estimate projected income statements and balance sheets for a two-year period.
● Identify your breakeven point.
● Describe your personal balance sheet and compensation methods.
● Discuss who will manage accounting records and in what way.
● Come up with some “what if” statements and come up with different approaches to potential issues.
● Describe how the business will operate on a day-to-day basis.
● Discuss procedures for hiring and employees.
● List insurance, rent, or lease agreements.
● List all requisite production assets in your possession.
● Describe the process, from manufacturing the product to the customer’s receipt.
● Recap your business goals. Make it clear that you are completely committed to your business’ success.
Tools for Writing Your Business Plan
The U.S. Small Business Administration (SBA), the State of Texas, the University of Texas at Tyler, and more provide grant funding for more than 50 Texas SBDCs. The North Texas UT Tyler-Longview SBDC offers free business advising services to local entrepreneurs and small businesses! You can also learn more about creating a business plan by taking this How to Write a Business Plan course at your own pace.
Review your business plan with a colleague when it is complete. Also, be sure to set up an appointment to discuss it with your banker if you are looking for a loan. Don’t forget, the business plan document will keep changing as your business continues to flourish.