The Time is Now: December is Write a Business Plan Month

Whether you are a current business owner or considering becoming one, a business plan is a necessary living document for progress. Though the task may be daunting, once written, a business plan should be updated annually to accommodate the business' growth and changes. That's why December is recognized as National Write a Business Plan Month. Yes, the time is now for current/future business owners to update/create their business plans for 2024.

For first-timers, writing a business plan can be confusing, scary, and frustrating. Since 1953, the U.S. Small Business Administration (SBA) has been America's resource for starting and funding a small business. The SBA's website also has specific information like the 10 Steps to Starting Your Business.

THE IMPORTANCE OF HAVING A BUSINESS PLAN

A business plan defines a business, identifies goals, and serves as a business's road map to success. It helps businesses owners handle unforeseen complications and make sound business decisions.

Establishing a business plan forces business owners to conduct market research, create financial projections, and develop strategies to propel growth. Regarding funding, a business plan is a requirement in every grant and loan application.

5 COMPONENTS OF A BUSINESS PLAN

It's helpful to know the components of a business plan. A step-by-step guide can help make drafting a business plan much more manageable. Here is one of the most basic formats for creating a typical business plan.

1. INTRODUCTION

• Give a detailed description of the business and its goals.
• Discuss the ownership of the business and the legal structure.
• List the skills and experience the owner brings to the business.
• Discuss the advantages over competitors.

2. MARKETING

• Discuss the products/services offered.
• Identify the customer demand for each product/service.
• Identify the market, its size, and its locations.
• Explain how products/services will be advertised and marketed.
• Explain the pricing strategy.

3. FINANCIAL MANAGEMENT

• Explain the source and amount of initial equity capital.
• Develop a monthly operating budget.
• Develop and expected return on investment (ROI) and monthly cash flow.
• Provide projected income statements and balance sheets for a two-year period.
• Discuss the breakeven point.
• Explain the business owner's method of compensation.
• Discuss who will maintain the accounting records and how they will be kept.
• Provide "what if" statements that address alternative approaches to any problem that may develop.

4. OPERATIONS

• Explain how the business will be managed on a day-to-day basis.
• Discuss hiring and other personnel procedures.
• Discuss insurance, lease/rent agreements, and issues pertinent to the business.
• Account for the equipment necessary to produce the products/services.
• Account for the production and delivery of products/services.

5. CONCLUDING STATEMENT

• Summarize the business goals and objectives by expressing the business owner's commitment to the performance of the business.

POSSIBILITIES ARE PLENTIFUL IN PASADENA

Jumpstart your 2024 goals and write your business plan today. Visit the SBA's website, or for more of a personalized experience, contact the San Jacinto College Small Business Development Center (SBDC). What you write today can catapult your success for tomorrow.

For out-of-area site selectors, after completing 2024's business plan, contact the Pasadena Economic Development Corporation (PEDC) to learn about the location advantages and other plentiful possibilities in Pasadena.