Welcome to the new year 2022 in the Freedom Friday blog and email newsletter. We're starting a new series today which is called “10 Steps to Starting a Small Business in 2022.” Each week we'll present the next step in starting a small business. Many people have a goal of starting a new business in the new year, and if you're interested in starting a small business, this series is for you.
The first step to start a new business is not choosing a business name, or even forming an LLC (or other business entity). We'll talk about those things later, but if you want to start a new business, the very first step before anything else is to develop a business plan. If anyone comes to me and wants me to help them start their small business, the very first thing I will ask them is if they have a business plan. As much as I want to help them, its very important to have a business plan, and you shouldn't look for a name for your new business or form an LLC without having a business plan first. Now, your business plan doesn't have to stay the same once you get started. I've changed the business plan for my law firm many times. The important thing is you NEED to have a business plan to get started before you do anything else.
So, how do you draft a business plan for your new small business? Great question! A business plan is a road map to guide you along while you start and grow your business. It can be modified and changed as your goals change. There is a lot of information online about how to develop a business plan, including free templates. In today's Freedom Friday blog and email newsletter, I want to share with you the five (5) essential components that you should include in the business plan for your new small business:
1. Executive Summary
Before I explain what an executive summary is, this is actually the last section of the business plan you should draft. This section will go before all the other sections of the business plan. So, what is an executive summary? An executive summary will highlight the best ideas and most important aspects of your business plan. It's a summary of everything else in your business plan. Its also very important if you're seeking investors or a loan for your new business for financing.
2. Industry Analysis
The second aspect you should include in your business plan is an industry analysis. An industry analysis will show what the market looks like in your small business's industry, who your competitors are, their strengths and weaknesses, who your target audience is, and lastly, who you will target with your new small business.
3. Marketing Analysis
The third aspect you should include in your business plan is a marketing analysis. A marketing analysis describes how you plan to market and promote your new business along with the various marketing channels you will use, and any unique ideas you may have for marketing your new business.
4. Operations Plan
The fourth aspect you should include in your business plan is an operations plan. The operations plan will include information as to what type of personnel you plan to hire (if any), and some of the processes you will follow in executing your new business. Your operations plan should also include milestones or goals you hope to accomplish, e.g. if there is a certain milestone or goal you hope to reach by the end of your first or second year in your new business.
5. Finance Plan
Lastly, the fifth aspect you should include in your business plan is a finance plan. The finance plan will include your budget, how much money you'll start with, and how much money you think you need in order to get your small business going. The finance plan should also include some projections, such as how much money your business might make in a month or a year, and how much your business would need to spend in terms of its expenses during that time period. For instance, you might project gross annual revenues for the first year as $50,000.00, and expenses of $10,000.00, and that's just an example. You should also include some information on pricing, i.e. how you will price your products or services, and how that pricing might compare to your competitors' pricing.
If you are interested in starting a small business in 2022, or you have any business law or business litigation need anywhere in the State of Oklahoma, please contact me at [email protected] to schedule a FREE strategy session.
For more information about Liberty Legal Solutions, LLC, please visit our website at http://www.libertylegalok.com/