Creating a Business Plan? Here's what you need to Know
Posted: Mar 01, 2019
So, you have a killer business idea. Now you have to write an equally killer business plan.
You fire up your laptop, open word document and stare at a blank page for minutes. But it dawns on you, Huh! …maybe I don’t have an idea how to draft a business plan after all.
Certainly, you won’t be first. So don’t worry, seek the services of a competent Business Plan Expert .
For most starters, creating a business plan feels like a homework. It’s something you know you have to do, but you don’t actually want to. But if you don’t, remember that 56 percent of all startups don’t make it to their fifth anniversary. Of these, 5 percent collapse due to lack of a plan.
Here’s some good news. Writing your plan doesn’t have to be boring, daunting or cumbersome. If all goes south, don’t hesitate to engage a Business Plan Service to help you.
For instance, once you understand the specific questions that you plan needs to answer to your readers, the exercise becomes easier. You can now position everything in a certain way that compels the readers to take action.
But before you set your fingers on your laptop, we’ll walk you through the process. Offer insights on how to tackle the writing process confidently.
Keep It Short and Simple
There is an old idea that a business plan needs to be a complex document. Huge and ultra-dense. To them, that’s how you convey seriousness about your company.
Well, not so much.
Complexity and length, it’s not always a good idea for a business plan. Here is why.
- Investors are short on Time
What’s the goal of your business plan? Maybe you’re using it to get capital. In that case, it’ll have to pass through an investor. But there is a challenge, investors are always busy.
Investors go through lots of business plans in a year. There is no point of presenting a 100-page business plan to an investor that they’ll take an entire day to go through. In fact, most of them won’t go through such a large document. They don’t have the time.
Instead, an investor wants to get your point across clearly and quickly. In that way, they’ll be able to skim through the plan and determine whether the idea is worth pursuing or not.
But don’t get confused. The fact that you won’t have a comprehensive plan doesn’t mean you ignore key components. With the help of your Business Plan Expert, refine all the key points that investors look for in 20 pages.
If you’re writing more than 20 pages, then it’s possible you’re repeating information, over explaining or including irrelevant information.
For instance, you don’t need 10 pages to explain how you’ll set up the website.
- Know Your Audience
If you fill your plan with technical terms, and complex sentences, it may make sense to a small group of people. Most probably, the ones in your niche and those with superhuman attention.
But, it alienates the vast majority who aren’t in your particular industry. The best bet would be to use a simple language that everyone can understand. From the most knowledgeable investor to your Great Aunt Gladys who still uses a landline.
How to Format Your Business Plan
You might be an expert in quantum mechanics. But what happens when if you show up to an interview rocking lime green crocs and cargo shorts? You can guess what the HR officer says.
How you present the plan is as important as the plan itself.
If the plan is full of inconsistent font types, sizes, margins, missing page numbers, heading and doesn’t have a conclusive table of contents. Such a plan will have a less digestible reading experience.
While there’s no specific way to format your plan, the idea is to ensure it’s professional. Your Business Plan Service should be able to help with this.
Refine The Plan. Then Refine Some More.
Your enterprise isn’t static. So, why would you make your business plan static?
A good business plan is constantly evolving. In fact, its last detail is rarely cast in stone. That means your first version shouldn’t and won’t be the last.
With time, your business will change. Revisit your plan frequently to ensure it reflects these changes. Keep everything up-to-date and as accurate as possible.
For instance, you may make some assumptions about the market. But after doing your market research, you may learn something that goes contrary to your initial assumptions.
Also, before you hand in your plan to bankers or investors, have a second pair of eyes to go through it. For instance, you may engage someone with "English teacher skills" to check through your plan for any punctuation, grammatical and spelling errors you may have missed.
More to this, your business plan critic should be able to offer valuable feedback on how your plan reads. While different investors choose different styles, the main point is to be consistent with your business and audience.
Writing Your Business Plan
Do you know the key components of a business plan and what they entail? If yes, do you know the key information to include in every section? Unless you know what these components entail and how the section works together to create a cohesive, compelling and persuasive plan.
Your business plan should have these components.
- The Executive Summary
- The company Synopsis
- The Market Overview
- The Product and How it Works
- Your Revenue Model
- The Operating Model
- The Competitive Analysis
- Your Customer Definition
- The Customer Acquisition
- The Traction
- Your Management Team
- The Funding
- Your Financials
Without one of these, your business plan will be incomplete.
You’ve got this. Congratulations!
Are you committed to creating a business plan, now you have some tips to help you on the way? Whether you’re seeking funding from an investor or applying for a loan, your business plan is your Holy Grail that will propel your enterprise to the next level.
But you’ve to accept that the process is involving. Drafting a plan is just a simple step on the journey. There’s more ahead, like reaching out to investors and developing your business.
Achieve all this with a business plan.
Juan Bendana is a full time freelance writer who deals in writing with various niches like technology, Pest Control, food, health, business development, and more.