|
Home / Business / Small Business
Tips On Strategic Planning For Small Business
By:Isabel Baldry
Small businesses tend to cater to a niche market. Therefore it becomes very important to learn the art of strategic planning in small business, to receive a good market share of whatever business niche the small business is supposed to cater to. Whether your small business is a catering company, a small bistro or a used car dealership, some sort of strategic planning for your small business will aid you in acquiring the required market penetration that you seek.
Small businesses can become very profitable if handled properly. The strength of a small business lies in its ability to move fast to capture and grow in a certain niche area. Planning is therefore of the greatest importance. Because of the fact that small businesses do not dominate the market even in the niche area, planning and marketing the business is crucial to the eventual success or eventual failure of the business.
This is because the type of problems that small businesses face differs from problems faced by large companies. The small businessman will have to plan accordingly, keeping this in mind. Bankruptcy is a real threat faced by most small business owners, in a large number of cases, small businesses simply go broke not because of economic problems but due to a poorly planned business model. Under capitalization is another huge factor that causes small businesses to fold up before their time.
Make a business plan - and stick to it as far as possible. This plan is what is going to guide you through to success or failure. Many small businesses find it difficult to get capital to start their venture. Since many small businesses depend on loans to fund their startup, a business plan is an important first step towards that loan. Research the business that you are going to enter into, study the market, and focus on the niche area.
You must identify all the potential negatives before beginning the business. Your business plan will decide the difference between winning and losing. A good plan takes cognizance of all factors and guides you through the intricacies of your market. It becomes the reference point to which you keep coming back in case of roadblocks that may appear on your business horizon.
Start up capital and funding are important issues, a bank loan can usually be acquired by the use of a convincing business plan. However, the real worry in financial terms that a small business has is that of repayment. Should you go in for a loan? Who will provide the initial seed capital? How and when will you break even? These important issues must be factored in your business plan.
A small business credit card is available through many companies. Is your small business suited to the use of one of these cards? This may depend on what type of business it is. Whatever it is, and however you go about funding your small business, make sure that you keep a finger on all the finances concerned with the business.
Proper financing is a major factor in your small business that can decide a successful outcome or a failure. Considering the number of small businesses that fail because of cash flow reasons compared to the actual number of small businesses started, financial planning seems to be a crucial link in the chain.
Marketing: let us come to this point at the very end. Did you clearly identify a market in the business plan? How many units did you figure the business could sell/deal in? What are the channels you will use to reach your market? A strategic business plan will have included all these issues before the business was even started. Marketing will decide whether people will buy your products or services - so make sure that you market yourself well. You are essentially selling yourself. Just smile and do it.
Whatever business you are keen on entering, remember that strategic planning in small business is a very important issue before you. Take the time to think through a plan and write it down. Your business depends on it.
Digg
del.icio.us
Blink
Stumble
Spurl
Reddit
Netscape
Furl
Article keywords: business plan, small business, strategic planning
Article Source: http://www.articles2k.com
Isabel Baldry is a freelance writer who writes passionately about a number of subjects. Learn more about strategic planning in small business here.
|
|
| Top Small Business Articles |
- 1). Taking Business Phone for Granted By : Kingston Amadan
Located in Manhattan, my company occupies a small space in the basement of a upper east side brownstone. Because the space is so limited, we store our servers and phone equipment in the boiler room. I know what you're thinking, and you're absolutely right. It's not a good idea to put your most expensive equipment in a tiny room that feels like the foyer to hell.
|
|
|
- 3). Small businesses main problem? They need more customers. By : W. Dave Free
In September of 2005 our company sponsored a survey of small businesses in the service areas. The purpose of the survey was to ask the business owners, many of them franchise owners, what their significant business hurdles were. The key areas of the survey were customers, growth, technology and research, and employees. You can see the complete results at http://seedsofgrowth.
|
- 4). Preparing Your Business for a Bird Flu Pandemic By : Bird Flu
How would your business operate if half your work force were out sick? Would your business continue to function if several of your top key employees died? How many employees are cross-trained in other positions?
A recent study showed the threat that most preoccupies the world's business leaders is a global influenza pandemic. This is why you need to start asking these questions now so your business can be prepared for a possible bird flu pandemic.
|
- 5). Phone Sales not Ready to Yeild to the Internet By : Kingston Amadan
There is no question that the internet has revolutionized business. Many people are not only paying their bills online, but also ordering products and services at an ever expanding rate as well. Businesses with a web presence have opened themselves up to new market where many consumers take advantage of the ease of shopping from pages visually no different from a catalog.
|
- 6). Small Business Computer Consulting: Additional Qualifications for the Sweet Spot By : Joshua Feinberg
To find the ideal clientele for your small business computer consulting, you want to target small businesses by their number of PC's, (10 to 50) as well as their revenue. Generally, companies that have anywhere from 1 million to 10 million in revenue are the sweet spot of small business computer consulting. In this article, you'll learn why you should target this type of business.
|
|
|
|
|
- 9). New Vending Machines – Where And How To Buy Them By : Peter Crump
When you purchase new vending machines, you are getting the latest models with all the bells and whistles that make them attractive to customers. However, you do have to look for the cheapest prices so that you can save as much money as possible in the investment of getting started in the vending machine business. This is one of the businesses that is easy to get started with and you can determine the type and number of vending machines you do want to start with.
|
|
|
| New Small Business Articles |
|
|
- 2). How to Choose a Watch Wholesaler By : Dustin Cannon
Choosing a watch wholesaler is not quite as easy as it may sound. Sure, you could just find a company that offers this service and get started. But do you really want to take the chance of getting mixed up with the wrong people?
|
|
|
|
|
- 5). Reasons Why Home Businesses Fail By : Terence Young
The decision to start a home business can often be one of excitement and promise. There are many reasons why people start a home based business but to fail is not one of them.5 Reasons Why Home Businesses Fail
|
|
|
|
|
|
|
|
|
|
|
|
|
