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Creating a business plan for a service business is typically beneficial, especially when the owner seeks funding. Even when there are no start-up costs involved, though, service business plans are usually helpful because they provide a detailed look at how the company will run, helping the owner stay on track to reach his business goals. Most business plans feature objectives, a mission statement and details about what exactly the business offers. Some of the best service business plans include research on the target audience, marketing strategies and the competition. A financial section is often a major component of a service business plan, because it describes start-up costs, supplier expenses and methods of keeping financial records.
Objectives are considered crucial for most service business plans, because they describe the main goals of the company, which may include reaching a particular income amount or number of clients. The mission statement is another major detail to include, because it describes the desired end result of the business, which is typically to attract and satisfy customers. Other crucial factors of service business plans include the correct contact information of the owner and whether the business is a sole proprietorship, limited liability company (LLC) or some other business type. Additionally, service business plans are usually expected to provide details on what the exact services will be and how quickly they will be delivered to customers. In general, the more details describing how the business will work, the better.
One of the best ways for a service business owner to show he is serious about his company is to include a lot of research in the plan. For example, business owners are expected to list their target market, the number of customers they expect to serve at once, and how the business differs from its competition. A marketing strategy should be proposed, briefly describing how customers will be reached, such as through direct mail, commercials or local events. The reasoning behind these strategies should be included in the service business plan, showing that some research was done before making these decisions.
Most service business plans that get good reception by the professionals include an in-depth financial section. This should list any start-up costs, with a brief description of each need and its corresponding estimated price. Though service businesses usually do not need inventory, they may use suppliers for any necessary equipment, as well as contractors who may offer their own services. Their costs also should be listed, using a price estimate or actual contract to lend support to this section, especially when trying to appeal to investors. Additionally, many service business plans benefit from a brief description of how financial records will be kept and whether a cash accounting or accrual method will be used to keep track of income.