Do you want to learn how to write a business plan Will that help your business thrive? Follow the 14 tips listed below and you’ll see how memorable and inspiring your business plan becomes for the people who read it.
1. Include each part of the main business plan
A business plan consists of 10 separate components, each of which includes specific information.
These sections include the following:
- Executive summary
- Company Overview
- Industry analysis
- Customer analysis
- Competitive analysis
- Marketing Plan
- Action plan
- Management Group
- Financial plan
2. Don’t write your plan alone
When you’re writing your business plan on your own, you just have to test each idea yourself. But when you invite your management team or a consultant or colleague to implement the plan, you benefit from a variety of perspectives. That way, you’ll be able to spot false patterns, cracks in ideas, missed opportunities, and more.
3. Keep in mind your business stage
Not every company business plan will be the same. Take a company with many years of experience as an example. When writing a business plan, that company can come up with specific results and data from each previous company, as proof of their capabilities. But as a startup, you won’t get this luxury. You will need to create a business plan by way of projections what you intend to achieve, use your current skills and strengths.
4. Customize the plan for the intended recipients
A business plan can be mentioned to many people, depending on its goals. If your goal is financial procurement for your business, the recipient could be a venture capitalist, banker or angel investor. If your goal is to get a facility to rent out, the recipient will be a landlord. Or, if your goal is to hire qualified employees, the recipient could be potential employees.
When writing a business plan, you must focus on the needs of the recipient. For example, finances are more detailed when it is the investor, or the detailed role / job description if it is a potential employee.
5. Building business plan in research, authenticity, trustworthiness
Your business plan should tell the intended recipient how large the market is, who your customers are, and how you differentiate from your competitors, among other things. This information should be based on current, reliable, and factual research about your market / industry, your customers and your competitors.
If your research is faulty or wrong, your business and plan will lose credibility.
6. Don’t write a plan that is longer than 25 pages
An ideal business plan is usually 15 to 25 pages long. Any shorter and the recipient may feel you haven’t studied it fully. Anything longer and the reader may be encouraged to take the time to read it.
7. Make your business plan visually appealing
Nobody likes to read page by page long content. A good business plan makes use of a lot of visualization.
Remember to include graphs, infographics, charts, product images and even brand logos in the plan. This not only engages the reader, but also ensures that the details of your plan are kept and remembered.
8. Make your USP an important selling point
When writing your business plan, allow your business’s core strengths and capabilities to be demonstrated. Explain with examples and data about your unique selling proposition (USP) can be beneficial to customers.
9. Make financial forecasts as realistic as possible
Financial planning is extremely important when writing a business plan. Here are some tips for creating more accurate financial forecasts:
Make a list of your assumptions based on finances (this is essential if you are a beginner). These assumptions may include:
- number of products / services provided;
- price calculated for each offer;
- number of buyers;
- monthly / quarterly sales frequency;
- Estimated cost.
Create 2-3 different scenarios of how these assumptions might play out. Out of these, there is at least one explanation for a negative scenario. This is important, because in reality, very few businesses can actually meet their financial forecasts for their first year in business.
Make forecasts for 5 years, but evaluate the first year monthly or quarterly.
10. Don’t try to roll out too many services at once
Many startups make the mistake of thinking they can launch multiple products or services at the same time. This is rarely done successfully. Instead, focus on the successful launch and development of the product / service and then plan on adding more afterwards.
11. Make sure to highlight the performance of your core team
Often times, the legacy of corporate leaders will attract investors, homeowners, employees and other stakeholders to the business. Their presence will reduce the uncertainty that investors and other stakeholders have about your inexperience with your business.
Include team member profiles in your plan and highlight their main achievements.
12. Personalization of data and statistics
It’s really important to include lots of statistics, metrics, case studies, and data in your business plan. But instead of just listing them, explain how they relate to your business or how you can use this data to your advantage. For example, if there is a tendency to self-serve in your industry and you make self-service options, emphasize the importance of this.
13. Carefully create your executive summary
Summary of your executive can make or break advertise your pitch. This is the first – and sometimes the only thing – that some people get read of in a business plan (especially if they’re flooded with plans). When writing a business plan, remember to clearly explain your business, discuss why it is uniquely qualified for success, and briefly summarize other parts of your plan.
14. Don’t skip the cover
Finally, don’t skip your cover. As they say, first impressions matter. An aesthetic cover that provides a clear understanding of whose plan is and what it is, can help you achieve your goals.
Armed with this knowledge, you can now formulate a successful business plan to take your company to the next level.