Information to Consider Before Writing a Business Plan
Writing a business plan can be an important step in the process of starting your business or taking it to the next level. In addition to the usefulness of a business plan for convincing potential lenders or investors to fund your endeavors, the process of writing a business plan also helps you to collect your thoughts, clarify your objectives and catch up on your bookkeeping.
Other People Are Reading
-
Goal
-
Before writing your business plan, clarify your goal for putting this information on paper. You may be looking for money to fund a specific project or for start-up expenses. Or, your company may be financially self-sufficient, but you might decide to write a business plan simply in order to define your future direction and research upcoming projects. There are many good reasons to write a business plan, but a business plan geared primarily towards securing funding will read quite differently than one that you write primarily for internal purposes.
Audience
-
Consider the audience for your business plan before putting your ideas on paper. If you will be using it to support a funding request submitted to a financial institution, your financial information should be the focus of the document. If you will be presenting your business plan to a potential partner who is passionate about your concept, focus on the vision and the conceptual aspect of your business plan. If your business plan is intended primarily for internal company use, it's fine to use internal company jargon.
-
Funding Amount Research
-
Carefully consider the amount of funding that your company needs. Make sure that you will have enough to complete the objectives outlined in the plan, but do not ask for a sum so high that it will put your project out of reach for potential funders. Carefully research the cost of each item you include in your budget, and also look into the background of your audience to determine the typical funding amounts that they handle.
Time Line
-
Prepare a time line for your business plan. Set deadlines for the process of preparing the document, and also for implementing the plan itself. Research typical time frames for the processes you propose, such as bringing a product from conceptual phase to market readiness. Also learn about the turnaround time for applying for funding through the institutions you plan on approaching. Develop backup plans for while you are waiting for your business plan to be evaluated.
-
References
- Photo Credit paperwork image by Pix by Marti from Fotolia.com
