This is the third article in an eight-part series on how to help your small business compete with the big guys. Read part two.

Most business experts say that the single most powerful tool a business owner can have is a marketing plan. This can be a simple document that specifically answers who you are, what you do, who needs what you offer, how you plan to get customers, when you plan to do it and how you should pay for it.

This type of outline lets everyone in your organization, network and client base clearly understand your strategy and approach. When building your plan be sure to:

• Narrow your market focus. Look at who you’re currently doing most of your business with and figure out why they do business with you. Write a single paragraph that describes what they look like and what motivates them to buy. You might learn that you’re currently trying to be all things to all people. This first step can help shape your market where you will be more successful in reaching your core audience.
• Position your business. What do you do best? Once you figure out what your target market longs for, tell them that you do it like no one else. Call some of your clients and ask them why they do business with you.
• Write your core messages. It is critical that you learn how to consistently talk about your business. Do you know your 30-second elevator speech? You should be able to concisely say what you do, how you do it and why you do it and excite people at the same time.
• Create your marketing materials. Using your core messages, your materials should reflect what you do as a business to showcase what sets your company apart from your competitors.
• Expect referrals. Create a referral marketing engine that turns happy clients into a referral network.

Next: Take stock of your image