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The Purpose of the 8(a) business plan
The Small Business Administration (SBA) requires an 8(a) business plan for all 8(a) certified business. The purpose of the 8(a) business plan is to help the SBA determine if your company is capable of fulfilling government contracts provided to your company. The SBA 8(a) business plan also helps determine and outline the objectives and goals for your business.
The SBA’s 8(a) Business Plan (also known as form 1010c) consists of 11 key sections which contains 52 detailed questions which must be filled out thoroughly. The 8(a) business plan is a very daunting document which requires an experienced business plan writer. Pulling all the information together in order to complete the document can take weeks. Errors in your 8(a) business plan will cost you time and money because the SBA will send your document back if there are any errors or missing information.
The sections of the 8(a) business plan (Form 1010C)
Section 1: Executive Summary
The applicant must describe what the business is in and what is hoped to be achieved. The business plan will then be presented to the assigned Business Opportunity Specialist to review.
Section 2: Business History, Background, and Objectives
When did the applicant form the company? Why was the business formed? What are the objectives over the next year and beyond? What are the achievements and successes? What obstacles had to be overcome to succeed?
Section 3: Business Environment
What is the current business environment? Is it a boom or bust time? How does it impact marketing?
Section 4: Products and/or Services
What products and/or services does the applicant’s company offer? What changes are planned in the next year?
Section 5: Present Market
Major customers need to be identified. What is the growth potential with current customers and getting new customers? What is the current marketing approach? How does the applicant compare to competitors?
Section 6: Competition
Who are the competitors? What are their strengths and weaknesses? How will the applicant be able to compete and overcome their advantages?
Section 7: Marketing Plan
What are marketing strategies, tools, and techniques will the applicant’s business use to promote the business? Section 8(a) and non-Section 8(a) market segments need to be addressed.
Describe your management team and list its strengths and weaknesses. Is the applicant properly utilizing social networks like Facebook and Twitter to spread their message?
Section 8: Organization and Management
How is the applicant’s company organized? What is the organized and management structure? What are the management team’s strengthens and weaknesses? Is there a succession strategy? If yes, who will take over if the owner is unable to serve or a key employee leaves?
Section 9: Business Resources
What suppliers are used? Where are they located? What are the payment terms (30, 60, 90, 120+ days)? Does the applicant need to use temporary or contract workers to fill orders? What quality standards are used to ensure products have the highest quality?
Section 10: Financial Plan/Data
What is the financial state of the company? Two years of projected business and cash flow need to be provided. What bank does the applicant use? What are lines of credit, amount owed, and amounts available?
Is there any debt? How much is it and who is owed to? Does the company use cash or accrual accounting? Are quarterly or annual statement prepared in house or outside accountants?
Section 11: Contract Support Targets
What support targets are the applicant trying to reach? The applicant needs to identify 8(a) and non-8(a) business they can obtain.
With a Section 8(a) Business Plan, an applicant will follow checklists and timetables to increase their chances of getting 8(a) and non-8(a) business. This also increases chances of growing America’s economy and creating jobs for Americans.
Contact Us Today
The SBA 8(a) Certification Attorneys and Accountants at DBE Direct are experienced and available to help you complete your 8(a) business plan. Call us at (786) 390-5709 We are available to review your 8(a) business plan before you submit your 8(a) business plan to the SBA.