BizBen.com
500 New & Refreshed Posts, Postings Daily
Over 8,000 Postings & 2,500 Resources
Assisting Buyers & Sellers Over 25 Years!


Business Plan

Tags: for sale by owner, SBA loans, selling a business

Comments & Replies: 1     Views:     Post ID:     Comments About This Glossary Term

The idea of preparing a business plan strikes fear into hearts of many would-be entrepreneurs. But buyers as well as sellers of small and mid-market businesses should learn how to create this kind of document. It's an important tool to help them achieve their goals.



A business plan can be a one-page summary of how an owner expects to operate a company or it can contain several pages with explanations of the objectives and detailed descriptions of ideas for reaching them. The size of the document depends on its purpose and on the level of detail the author thinks is necessary to meet that purpose.



Business plans usually begin with a statement regarding the purpose and continue with a description of the present situation. A plan about increasing sales for a retailer, for example, would note the dollar value of sales achieved in a specific period of time, the kind of items included, the current pricing, advertising and other marketing efforts, and skills of personnel employed to engage with customers and make sales. There might be a discussion of what competitors are doing to achieve their sales. Hours of operation, promotions, community outreach efforts might also be discussed in the plan.



The next section, the heart of the plan, describes strategies that will be used to achieve the objective. A restaurant owner might plan to redecorate the premises, change items on the menu to attract a different type of clientele and build a fresh website with an interactive feature for ordering meals online to be picked up by customers or delivered to their homes. A distribution company might create a strategy that calls for changing the product mix, hiring a sales person to obtain new customers and offering special promotions.



Many well-developed plans review the strengths and weaknesses of the business, with discussions of how to overcome weaknesses and capitalize on strengths. The auto repair garage in an out-of-the-way location, for example (a weakness), might want to offer a shuttle service for customer convenience. And it could offer classes on basic maintenance issues with instruction provided by its knowledgeable mechanics (strength).



One valuable use of a business plan for a buyer is when seeking business purchase financing. A seller can use a plan as a selling tool, demonstrating for prospective buyers how they can improve the company's profitability.


Other Related Blog Posts, Articles, And Discussions You May Be Interested In

John Willingham Central Valley Broker John Willingham, CBI, CCIM, Business Broker - Kern, Fresno, Tulare Counties

John Willingham, CBI, CCIM, Sunbelt Business Advisors & Brokers of Kern, Fresno, Tulare County is dedicated to providing the best possible venue for bringing buyers & sellers of businesses together. Professional, confidential brokerage services to buyers & sellers. 661-332-9401 Cell/Text.
Buying An Absentee Small Business The Pros And Cons Of Buying An Absentee Run Small Business In California

Peter Siegel, MBA - BizBen Founder discusses the difference between a hands on owner and an absentee owner. It covers why someone would want to be an absentee owner and then goes on to discuss the pros and cons of buying an absentee run small business in the California marketplace.
Reason For Not Selling Business What Are Some Possible Reasons My Broker Didn't Sell My Small Business?

What are some reasons a business that was previously on the market with another broker didn't sell? Every broker or agent understands that not every business they list will result in a sale. There can be many reasons small businesses don't sell and many are discussed on this BizBen Discussion post.
Questions To Ask A Business Broker Hiring A Business Broker? Ask These Top Key Questions First, Then Decide

The key to finding the ideal business broker or agent and selling a small business is asking the right questions and getting the right answers back! Peter Siegel, MBA with BizBen & several top business brokers and agents (ProIntermediaries) in California contribute to this topic to assist sellers.
Disclosures Needed For Business Buyers What Do I Need To Disclose To All Prospective Buyers Of My Small Business?

When selling a small business you always run the risk of a lawsuit. They aren't as common as one may think in this litigious world in which we live in, but whenever there is money exchanging hands & attorneys involved the stage is set for a lawsuit. Various ProIntermediaries share their viewpoints.
Hospice Business For Sale Scottsdale Arizona Brand New Hospice Agency For Sale In Scottsdale, Maricopa County, Arizona

Brand New Hospice Agency for sale in Arizona with Provider Number For Sale. Excellent opportunity to acquire new Medicare Provider CHAPS certified hospice agency covering Maricopa County and surrounding counties as well. Policies & Procedures are available for review along with all other documents.
Business Buyers Biggest Mistakes What Are Buyers Biggest Mistakes? The Pro's Examine 25 Of The Most Common

A business buyer in our ProBuy Program searching to buy a small business asked me to sum up what I thought the biggest mistakes business buyers make when they search for and bought a small business. I asked ProIntermediaries on BizBen their thoughts on the matter and received a diverse response.
LA County Sign Manufacturer For Sale LA County Area Sign Manufacturer For Sale: Long Established, Owner Retiring

Centrally located business opportunity. Channel letter sign manufacturer with over 30 years experience. Selling business and equipment plus inventory. Established list of clients that keep feeding business. High efficient programmable machinery and computer software to upload and download designs.
Unreported Income Claims By Sellers Unreported Income Claims By The Seller - What Should A Business Buyer Do?

One of the most difficult challenges when purchasing a small business is expressed by this prospective buyer of a liquor store who is told by the seller that there is more money being made than shows up on the books. Should the buyer accept that statement by the seller & go ahead with the purchase?
Business Broker Likes Purchase Agreements Advantages Of An Asset Purchase Agreement (Contract) Over A Letter Of Intent

An LOI may very well be appropriate for lower middle market transactions of $5,000,000 or more; but, for deals less than that an Asset Purchase Agreement ("APA") with contingencies on the actions of the buyer (and seller) is much more efficient & effective. Tim Cunha, JD (Business Broker) explains.