Writing business plans seem complicated, but when equipped with the right knowledge on the parts of a business plan, you can whip one up easily. There is no need to worry, you don't need to obtain an accounting or business degree to write a successful business plan.
With that in mind, planning for business is vital, as this is the foundation of your goals, and it will help you go through every stage of beginning and managing the future business. It will be your roadmap on structuring and growing the business in the future and help you to ensure that your decisions are aligned with what you indicated in your plan.
7 tips to create a business plan
1. It's best to know the competition, naming them and indicating how your business is
different from them. And while you might want to talk about negative rumors on
competition, avoid listing their weaknesses or talking about hearsay. Stick to hard
facts and avoid disparaging the competition.
2. Know your audience and target market. It's recommended to create several versions
of plans in business catered to who you are presenting to. Have one for individual
investors, venture capitalists, bankers, and companies that may want to either fund
or do joint ventures.
3. Add proof that backs up the claims you make. When you are making a business plan,
you will probably talk about how you expect to be the next leader in the industry
within the year. If you do, then you have to support that statement with proper
facts, along with any other statement you make in the plan.
4. Always be conservative with your estimates and projections. If you're certain that you'll be able to capture 50% of your market in the first few years, explain why and make the numbers a bit more conservative. Maybe put in 10% market shares for starters.
5. Be realistic with what you have. Just like being conservative, you also need to be realistic, using the time and resources you have now. Don't be too optimistic with those two, especially when you just started making business plans for a new company. It's vital to be realistic and assume that things may take 15% longer than what you expected, as this leads to more credibility as you present.
6. Besides time and resources, avoid overestimating or exaggerating your business plans. Avoid superlatives or strong adjectives, and don't overestimate on financial projections or time frames. Investors do not like seeing gimmicks or amateur financial projections; they need facts and proof of why your business is worth investing in.
7. When you create a business plan, think like how bankers would do, being logical and putting in what they want and need to read. Describe the facilities and locations where you'll work, the payout options for investors, and as always, avoid any empty claims.
We hope that these quick tips on how to create a business plan helped you out! Keep these tips in mind and further expand your knowledge on starting your own new business today.