If you’re thinking about starting a business, or you’ve been in business for a while but have never written a business plan, you may be wondering where to start. The good news is that writing an SBA business plan doesn’t have to be difficult. In fact, it can be fun!
In this article, we will walk you through the process of writing an SBA business plan. We will provide templates and examples to help you get started, and we will show you how to customize your plan for your unique business. So let’s get started!
What is a business plan?
A business plan is a document that an entrepreneur uses to describe their business, its goals, and how they intend to achieve them. It is important to have a business plan because it will help you stay organized and focused on your goals. A business plan can also be used to attract lenders, employees, partners, and investors.
SBA Business Plan Template Download
Click to download the free SBA Business Plan Template (Document SBA 1010C)
What should an SBA business plan template have in it?
While the SBA 1010C business plan template isn’t the easiest to fill out, we have laid out the important elements of a business plan.
Executive Summary
An executive summary is a key element of a business plan. It provides a brief overview of the main points of the plan, including the company’s mission statement, products or services, target market, and financial projections. The summary should be concise and well-written, with the goal of persuading potential lenders to read the full business plan.
In addition to summarizing the key points of the plan, the executive summary should also include information on the company’s management team, competitive landscape, and expected return on investment. While it is important to include all of this information in the summary, it should be presented in a way that is easy for busy lenders to digest. With that in mind, an executive summary should be no more than two or three pages long.
Tips on writing an Executive Summary
- The executive summary is a brief overview of your business plan
- It should include information about your business, such as its name, location, and products or services
- The executive summary should also include a description of your target market and how you plan to reach it
- You should also include information about your team, including their experience and qualifications
- Finally, the executive summary should include a financial overview of your business
Company Description
A company description is a key component of a business plan. It outlines the company’s purpose, products or services, target market, and competitive advantages. This information helps potential lenders understand what the company does and why it would be a good investment. The company description should be clear and concise, and it should give a snapshot of the business. For example, if you are starting a new restaurant, your company description might include information about the type of food you will serve, your target customers, and your location. Including this information in the business plan helps to paint a picture of the business for potential bankers.
Tips for writing the Company Description section
- Keep it concise
- Describe your products or services
- Explain your target market
- Outline your competitive landscape
- Discuss your company’s history and experience
- Include financial information, such as revenue and net worth
Market Analysis
A market analysis is a crucial component of a business plan. It provides an overview of the industry in which the business will operate, as well as the potential customer base. Your market research should also include information on competitors, which can help the business to position itself in the market. Furthermore, the market analysis can provide insights into trends and opportunities that may be beneficial for the business. Ultimately, a market analysis is an essential tool for any business that wants to succeed in today’s competitive marketplace.
Tips for writing the Market Analysis section
- Start by doing your research
- Use industry data to back up your findings
- Analyze the competition
- Identify trends and opportunities
- Be clear and concise
Organization and Management
The Organization and Management section of a business plan is where you’ll provide an overview of your company’s legal structure (sole proprietorship, partnership, corporation, Limited Liability Company (LLC) ) and team. This is an important section to include in your business plan, as it will give lenders a clear understanding of who is running the business and how it is organized. In this section, you should include information on your company’s management team, as well as its organizational structure. You should also describe any plans you have for hiring additional staff or expanding your company in the future. By providing this information, you’ll give investors and lenders a better sense of the risks and opportunities associated with your business.
Be sure to discuss any licenses and permits that the company has secured or in the process of applying for.
Tips for writing the Organization and Management section
- Outline your company’s structure
- Describe your management team
- Detail your organizational chart
- Discuss any plans you have for hiring or expanding in the future
- Be clear and concise
Product or Service Offered
The Product or Service Offered section of a business plan is where you describe in detail what your business does and what products or services it offers. This is an important section, as it helps to give a lender an idea of the potential of your business. In this section, you should include a description of your products or services, how they are produced or delivered, any unique selling points, and an overview of your target market. This section should also include an analysis of your competition and how your products or services compare. By taking the time to create a detailed and well-thought-out Product or Service Offered section, you will give yourself a better chance of securing funding for your business.
If appropriate, be sure to include any research and development efforts or secured/planned patent filings. In addition, how will you plan to protect the intellectual property of the business.
Tips for writing the Product or Services Offered section
- Describe your products or services in detail
- Explain why your products or services are unique
- Discuss your target market
- Outline your pricing strategy
- Discuss any other pertinent information about your products or services
- Be clear and concise
Sales and Marketing
The Marketing and Sales section of a business plan is where you will outline your strategies for marketing and selling your product or service. This section should include an overview of your target market, your marketing strategy, and your sales strategy. Your marketing strategy should include a discussion of your branding, your pricing, and your distribution channels. Your sales strategy should include a discussion of how you will generate leads and close sales. This section should also include a discussion of any promotional activities you have planned, such as trade shows or marketing campaigns. Finally, this section should include a financial analysis of your marketing and sales efforts, including a budget.
Tips for writing the Sales and Marketing section
- Start by describing your target market
- Discuss your marketing strategy
- Detail your sales process
- Outline your promotional plans
- Discuss any partnerships or collaborations you have formed
- Describe your customer base
- Include financial information, such as revenue and net worth
- Be clear and concise
Request for Funding
The funding request is a crucial part of any business plan. This is where you make the case for why your business should receive funding from lenders. The request should be clear and concise, and it should include an overview of your business’s finances, collateral being used to secure the loan, as well as a detailed explanation of how the funding will be used.
Also see: 10 Tips for Getting a Small Business Loan
Tips for writing the Request for Funding section
- Start by describing your business and its financial situation
- Outline your needs for funding and how the money will be used
- Provide a detailed explanation of your business’s finances
- Show how you will repay the loan or investment
- Make a strong case for why your business should receive funding
- Be clear and concise
Financial Projections
The financial projections section of a business plan is where you’ll outline your company’s anticipated future income, expenses, and profits. To develop accurate financial projections, you’ll need to gather detailed information on your past financial performance, as well as your current operating costs. You’ll also need to make assumptions about things like future sales growth, new product development, and changes in the overall economy.
This section should be based on your research and knowledge of your industry. Remember to include some buffers in your financial plans in case there are unforeseen circumstances. This section should include the Profit & Loss Statement (P&L) – also referred to as an Income Statement, Cash Flow Statement, and Balance Sheet.
Once you have all of this information, you can begin to develop a realistic picture of your company’s future finances. While financial projections are never 100% accurate, they can give you a good idea of what to expect in the coming years and help you make important decisions about how to allocate your resources.
Tips for writing the Financial Projections section
- Start by describing your business and its financial situation
- Outline your revenue projection for the next three years
- Detail your expenses for the next three years
- Project your net income for the next three years
- Explain how you arrived at these projections
- Be clear and concise
Appendix
The Appendix section of a business plan is where you will find any additional information that you feel is important to include but doesn’t fit in elsewhere. This might include things like your company’s Articles of Incorporation, resumes of your key employees, credit histories of the borrowers, or floor plans of the facility.
Essentially, it should be anything that you feel would be helpful for someone reading your business plan to have access to should be included in the Appendix. This section can be particularly helpful for providing readers with more detailed information about your team or your company’s history. Including this type of information in the appendix helps to give your business plan a more well-rounded picture.
You may have noticed that in several of the tips for writing a business plan to keep it clear and concise. Lenders are typically not interested in the fine details of a startup’s business plan. Too much information may cause them to lose interest, or you may introduce topics that confuse the information in the plan.
Is it possible to start a business with no money?
Yes, it is possible to start certain businesses with no money. There are a number of ways to do this, such as starting a business on a shoestring budget or finding investors who are willing to provide funding. However, it should be noted that starting a business with no money can be very difficult, and there is no guarantee of success.
Does the SBA require a business plan?
The SBA will require a business plan from anyone looking to obtain an SBA guarantee for a bank loan.
Does the SBA help write a business plan?
The SBA does not write business plans for individuals. However, the agency offers a number of resources that can help with the process, including templates, examples, and tips. Additionally, the Small Business Development Centers (SBDCs) offer assistance and business resources to small business owners in completing their business plan.
Where can I get help to write a business plan?
If you need help writing a business plan, there are a number of places you can go. The SBA offers a number of resources that can be helpful, including templates, examples, and tips. Additionally, the Small Business Development Centers (SBDCs) offer counseling, guidance, and training on how to write a business plan. You can also find a number of helpful books and articles on the subject. Finally, you can hire a professional to help you with the process.
How much does it cost to hire someone to write a business plan?
The cost of hiring someone to write a business plan varies depending on the individual’s experience and the scope of the project. Generally, you can expect to pay anywhere from $500 to $5,000 for a professional business plan.
But, with the free services of the SBDC, you will end up with a better plan since you are writing it yourself, and you won’t spend a lot of money to do so.