How to precisely evaluate the business and conduct a thorough and genuine marketing plan has been a vita element that affects small business owners to finance their entrepreneurial projects—either they are seeking loans from banks or raising fund from their families or friends, they have to provide a document that includes their business objectives, cash flow projections, operations, you name it.
Rodney Santiago, a business counsel from Queens Business Outreach Center offered several main steps that small business starters are able to compare.
Identifying the legal structure is the initial process that business owners have to keep in mind. There are five business types, basically, sole proprietorship, partnership, corporation, limited liability company (LLC) or limited liability partnership (LLP), and non-profit.
“What’s the structure that your business? How many partners you will have in your business? Do you need a physical location or commercial space?” says Santiago, “Those questions have to be answered. It is always necessary to compare the pros and cons of the different business types.”
When it comes to making a marketing plan, the first thing is writing an executive summary that lists the mission statement and “other relevant information regarding to your small business,” says Santiago.
The other relevant information, according to Santiago, are supposed to be highlighted in “a brief, even bulleted, fashion,” including the date when business begins, names of founders and the functions they performed, number of employees, locations of business and any branches or subsidiaries, descriptions of plant or facilities, products manufactured or services rendered, banking relationships and information regarding current investors, and management’s future plans.
Then, an overall marketing strategy would include market penetration strategy, strategy for growing your business, channels of distribution strategy and communication strategy. “A detailed introduction about the ownership of your company is also meaningful,” says Santiago, “Knowing the answers like who does what in your business and what are they responsible for.”
Once the business is launched, owners have to make financial projections to present the capability of “making profit.” The reason for that section is because “as an owner of a business, you always want to know how many coffees I need to sell per day, and how much I need to pay for rent,” says Santiago.
The basic financial statements include: forecasted income statements, balance sheets, cash flow statements, and capital expenditure budgets. Then, “you have to really understand the difference among those statements,” adds Santiago, “income statement, for instance, shows the profit in the past, knowing where am I today, or did I make any profit?” Calculating the human costs is another issue that needs to be included in the plan.