Business Plan For the Small Manufacturer

July 27, 2010 by  Filed under: Management 

A business plan can provide the owner-manager or prospective owner-manager of a small manufacturing firm with a pathway to profit. This publication is designed to help an owner-manager draw up a business plan.

In building a pathway to profit you need to consider the following questions: What business am I in? What goods do I sell? Where is my market? Who will buy? Who is my competition? What is my sales strategy? What merchandising methods will I use? How much money is needed to operate my company? How will I get the work done? What management controls are needed? How can they be carried out? When should I revise my plan? Where can I go for help?

No one can answer these questions for you. As the owner-manager you must answer them and draw up a business plan. This publication is a combination of text and work spaces so you can write in the information you gather in developing your business plan.

A Note on Using This Publication

It takes time, energy and patience to draw up a satisfactory business plan. Use this publication to get your ideas and the supporting facts down on paper. And, above all, make changes on these pages as the plan unfolds and you see the need for changes. Bear in mind that any factors you leave out of the picture will create an additional cost when they unexpectedly crop up later.

If you leave out or ignore enough items, your business is headed for disaster. Keep in mind, too, that your final goal is to put your plan into action. More will be said about this step near the end of this publication.

What’s in This for Me?

There was a time when an individual could start a small business and prosper, provided he or she was strong enough to work long hours and had the knack for selling at a higher price than raw materials or product cost. Small stores, grist mills, livery stables and blacksmith shops sprang up in many crossroads communities as Americans applied their energy and native intelligence to settling the continent.

Today this native intelligence is still important. But by itself the common sense for which Americans are famous will not ensure success in a small business. Technology, the marketplace and even people themselves have become more complicated than they were one hundred, or even twenty-five, years ago.

Common sense must be combined with new techniques in order to succeed in the space age. Just as one would not think of launching a manned space capsule without a flight plan, one should not think of launching a new small manufacturing business without a business plan.

A business plan is an exciting tool you can use to plot a course for your company. Such a plan is a logical progression from a common sense starting point to a common sense ending point. To build a business plan for your company, you need only to think and react as a manager to questions such as What product is to be manufactured? How can it best be made? What will it cost me? Who will buy the product? What profit can I make?

Author is from Companies Management which is the best Project Management blog.

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