Anyone wishing to start a small business should be advised on the importance of having a business plan at hand. This is a document that outlines the goals and objectives of the business, as well as how the business owner plans to raise capital to kick start the business. The document needs to capture all these contents in details for the sake of future reference.
A small business plan contains a cover sheet which basically contains the name of the business, the location, the contact details and the name of the organization or donor to which the document will be presented. The date of the compilation of the plan and the targeted amount of money should also appear on the cover letter. The body of the small business plan captures more specific details concerning the business. These include the description of the business in terms of its operation, the period of time it has been in existence, its target population, its work force and general market conditions like how competition is handled.
When it comes to the financial data of the enterprise, the plan must outline if the business has previously sought finances through loans, and if they have not been paid back yet, what the plans are in order to make repayments. The balance sheets, profit and loss statements, otherwise known as pro-forma income projections should also be availed in the plan. If the business has been in existence for a long period of time, one should avail a yearly summary, monthly for the first year and in a quarterly basis for the years that follow.
The small business plan should be accompanied by other supporting documents as they may be available. For example, if the business has been paying tax, tax return documents should be attached. A financial statement to support the balance sheet should be acquired from the bank in which the business has an account. Other copies that should be availed include copies of licenses, legal documents, lease or purchase for building space and letters of intent from suppliers.