Starting a new business can be very daunting, not only is there a tremendous amount of creative thinking required, but documentation and paperwork. However, in the big picture, having all of your paperwork in order will benefit your small business in the long run and make small business accounting a great deal easier.

Your Fort Collins CPA can help you set up the financial side of things, but before you procure bookkeeping services, you need to at last have a small business plan written up.

This will give your Fort Collins CPA the material she needs to get the financial gears in motion, as well as advise you on issues like taxation, deductions, and loans.

Starting a small business requires making critical financial decisions, knowing your financial options, and completing your legal obligations when it comes to setting up the financial side of your business. Depending on the type and scope of your small business, these will vary. However, regardless of what type of small business you are developing, the first thing you need to do is write a business plan.

Depending on the scale, scope, and type of business, this first piece of documentation will vary in its scope. We’re going to start you out with some basic tips on writing a business plan that will be useful and get you started when it comes to financing and other issues.

Three Chapters Of A Small Business Plan

Company Description

Be as thorough and factual as possible when writing your company description. Think of it like you would a resume. It needs every important element of information applicable to your small business, with some ambition and a lot of concise solid facts written in.

Your business plan will also be something you will use to procure financing, investment, and other financial necessities, so also consider it as a sales pitch.

First, describe the exact nature of your small business, and what market or markets it is being designed to serve. For example, if you’re wanting to start a small candle company, lay out the merits of your product. Why is it special? What market niche will it serve? Why will your specific product be successful? Spend some quality time writing this section, it is the introduction to your small business, and it needs to be strong. Things to consider are:

1. How your product satisfies a market need, and who your target audience is.
2. What your product has to offer that sets it apart.
3. The qualifications, experience, or prior business experience you have with this product.

Marketing Venue

Next, specify if your product will be marketed online or out of a storefront, or through a multi-marketing scenario. You might have initial plans to start your business in one specific venue, with the goal of expanding its bases of operation in the future. That’s fine, but state how you plan to start. If you’re going to open a local storefront with a workshop for producing your candles included on the site, for example, include this information. Small business accounting and the help your Fort Collins CPA can give you will be dependent on your venue.

A storefront is taxed quite differently than an online-only small business. And, if you intend to start with one format, but plan to expand into several, it’s important for obtaining effective bookkeeping services to know what financial obligations your plan currently entails, as well as the obligations that will come down the road. This is good not only for setting up your accounting services, but for providing financiers, investors, and lenders with the full scope of not only the initial start-up protocol you want to follow but our long term expectations for your small business.

Market Research and Analysis

Now you need to show you have done your research, know your product and its market, and have a viable small business plan that will be successful. Here are items to include, as applicable:

1. Industry outlook. Is your product going to be successful because it’s a much-required item? Or, is it going to do well because it’s unique? Whatever the nature of your small business, write a summation of the current market, then demonstrate how your specific product or service will profit within the existing marketplace, and why. How do you stand out in your market?
2. Target market. Who is going to use your services or buy your product? Demographics are great to use here. Your venue will have to be one that is most appealing to your target consumer. If you’re starting a business online, demonstrate that you plan to use a professional web design service that has proven effective with other clients. If you’re planning on operating out of a storefront, explain why your area will be successful in drawing customers.

With this starter template, you can expand your business plan as needed, but it’s a great starter model to get you rolling.  Get writing, good luck, and be sure and contact your Fort Collins CPA once you have written your plan to help you get started on the road to success.