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Small Business Plan

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A small business plan is critical to startup enterprises because there is a high risk of failure without thorough and adequate planning . The business plan for a small business provides a clear roadmap for the future that ensures adequate capital is available for the first 3 to 5 years of operations. As many as three out of four small business startups fail, largely because they did not develop honest and reasonable financial plans covering ongoing revenue sources and contingency funding. It can take several years for a startup business to become self-sufficient.


Approach to Small Business Plan

The small business plan encourages entrepreneurs starting small business to consider all of the important aspects of successful operation.

  • What is the primary mission of the business?

  • How is the business differentiated from the competition and does the company description make those differences clear?

  • Has the relevant industry, competition, and markets been thoroughly researched?

  • What type of legal business structure will be created (sole proprietor, incorporation (C or S), partnership (general or limited), etc.)?

  • Is the organizational chart well developed so that it clearly shows lines of authority?

  • Will there be employees and is an equitable compensation plan in place?

  • Will there be a Board of Directors and are the members knowledgeable about the business and industry the business operates in and able to provide professional guidance?

  • Is there a clear need for the products and services and how is the market need and business solution documented?

  • What is the product or service lifecycle and how will the business achieve sustainability?

  • Are the financial projections realistic and are revenues and operational expenses projected 5 years into the future?

Making the small business plan stand out is important to attracting funders, including venture capitalists, equity funders, angel investors, and institutional financial lenders. A small business startup is usually joining an active, competitive marketplace and must be able to clearly show why and how the new products and services are different from what is already available. It always comes down to being able to demonstrate in the business plan that the new enterprise is offering a valuable solution to a market need. The sales and marketing strategies have to directly target market niches to get the fastest results. A mistake many new entrepreneurs make is failing to identify the specific market niche, so they also fail to identify their real competition.

OGS Capital professionals work with entrepreneurs across industries. Their experience is crucial to developing an expert business plan that is thorough, realistic, and attractive to investors. Completing the simple form to the right sets you on the right path to business success.

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