Advice on How to Write a Business Plan
Much like the process of starting a business, writing a business plan is a daunting task. A business plan is a formal collection of documents that state the goals for your business and your plan for achieving those goals, starting with preparation for launching the business, and projecting through a minimum of five years in operation. Your plan will not only serve as a presentation tool when you contact investors and property owners, it is also a reference guide as you see your business go from dream -- to reality.
Other People Are Reading
-
Outline
-
Each component of your business plan must be detailed and thorough. However, trying to start out with too many details can make you lose sight of the overall purpose of your plan. Before you begin, write a general outline that highlights the key points you want to focus on, then use this outline as a guide while you write the complete plan. Your business plan should include an executive summary (which summarizes the entire plan in two to four pages), as well as sections dedicated to your staff and management, financial plan, marketing plan, and an appendix that includes supporting documents such as signed letters of intent, contracts and blueprints.
Ask Customers
-
If you find yourself stumbling over product descriptions or a marketing plan, contact customers to ask their advice. Your business aims to provide a service or product, and those purchasing that service or product will likely have a lot of valuable insights that you can use in your business plan. Investors in particular will want to see proof in your business plan that you understand who your target audience is, and that you are responding to their needs.
-
Study the Competition
-
Of course, you want your business to stand out from the competition. However, if your competitors are successful, you have the opportunity to learn something from them. Find out the details of their financial plans or marketing tactics to get the creative ideas flowing for your plan. Understanding how your competitors run their businesses will help you in organizing your own process.
Be Positive But Realistic
-
While you want your financial goals and projections to be positive and to encourage investment, experienced investors and businesspersons will know if you've exaggerated, or avoid investing if your plan seems unrealistic. Use a positive tone to describe the realistic goals and projections you have calculated for your company. The point of your financial section is not to prove how lucrative your business will be, but to show you understand the market and are prepared for the future.
Different Angles
-
Consider your business plan from different angles while writing each section. In addition to how your plan will come across to others, think about what it will look like to you once your business is open, or in five years from now. Allow yourself room for changes so you can be flexible, and adapt your plan accordingly as your business grows.
-
References
Resources
- Photo Credit Jupiterimages/Comstock/Getty Images
