10 Tips on How to Write a Business Plan That Rocks
Although I think that having a business plan is not the most important thing for a startup, I consider that it’s a really good idea to have one. When you sit down and start writing one, you will be amazed about how many things are not really clear regarding your business. This would be a good way to address these issues and make some optimizations. Also, it would be almost impossible to get start-up financing or a business loan without such a document.
How to write a good business plan? Here are some tips that will help you do this task better.
Tips on How to Write It
1. The business plan should fully describe your business model. You should include all of the details, don’t try to hide anything, fearing that someone can steal your idea. Always include specific numbers – prices, costs, margins etc.
2. Strive for quality, not quantity. Don’t try to write a specific number of pages, try to make a clear, well organized, focused and understandable plan.
3. Try to define your specific targets and needs. Show specific projected results.
4. Be realistic! Don’t make your plan too optimistic or too pessimistic…, just realistic. This will help you a lot in the long run.
5. Write your executive summary (the first part of your plan) last. It should be a clear and logic explanation of your business model, no longer than 2 pages. This is the first thing that a bank or a financial institution will look at. After reading it, they should want to learn more about your business.
6. The marketing plan is the most important part of your business, try to make it the best part of your business plan. This is the second thing that would be examined by the person reading your plan. Sales are the most important activity a business should be able to do, no sales – no profits – no business.
7. You plan should give a complete and clear picture of your business.
8. Show knowledge! Knowledge is power, show that you have it! The reader of your plan should be able to see that you understand business and particularly your own business. If you don’t know the difference between net cash flow and profits, you better hire a consultant.
9. Focus on results! Your potential investors would want results, not just explanations about your current situation. They would want their money back with some profit. If you expect some decent results, don’t miss to write about them in details and specific numbers.
So, follow all of these steps and you will end up with a decent business plan that can be used for multiple purposes. I wish you luck!
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