What You Need to Know about Writing Your First Business Plan
February 15, 2019
February 15, 2019
A business plan is an essential part of the process when launching a new venture. Rather than looking at your business plan as a barrier to your progress, you should be looking at it as a tool. The right business plan will act as a step by step guide to both your long and short-term strategies.
Itâ€™s all well and good to have a great business idea, but by committing to writing a solid business plan, you are forced to assess your idea much more realistically. If you’re thinking about the future of your business, or you need a business plan to help your application for bank loans or equipment financing, then this guide will take you through the essentials.
There are three main reasons why you need a business plan. The more well-thought out your plan, the more likely that it will help you get the responses and solutions that you need. The three reasons are:
It takes time and awareness to build the best business plan. Thereâ€™s no need to make it a complex document that rivals War and Peace for complexity. For the most basic template, break your plan down into:
Creating a business plan involves a lot of thought. You need to consider what you want to do, and use that as a starting point. It doesn’t need to be complicated. At its core, your plan should identify where you are now, where you want your business to go, and how you will get there.
Once you understand the importance of a quality business plan, the question then becomes how to create it. Luckily, there are some simple rules that you can follow that will act as a roadmap to a better business plan.
Thereâ€™s no need to write a huge essay. Youâ€™re not studying for a PhD! Keep your business plan concise. There are some obvious reasons for not handing in a 100-page document that goes into every imaginable detail.
Thereâ€™s no need to use technical jargon or use industry relevant terms in your business plan. Keep it simple and easy to read. Investors want to understand what you are proposing, and they are not going to judge you on your technical expertise. They want to know what your issues are and how you are going to counter them.
If your business model is very technical in terms of products or services, then itâ€™s worth having a technical section in your appendix for those that want a more in-depth understanding.
It can be intimidating to approach a potential investor with your business plan in hand. Donâ€™t let it be. If someone has agreed to meet you in order to go over your plan, then they already have an interest. If youâ€™re passionate about your idea, then bring that passion with you. Investors want to make a profit, and your passion along with a well-thought-out business plan could be the thing that convinces them that youâ€™re a risk worth investing in. When that investment is all that stands between you and that essential industrial equipment financing, the more you have confidence in your plan, the better.
Your business plan is the key to moving your venture forward. Take the time to get it right, and it could be the stepping stone that brings launch day even closer.
There are any number of online templates available if you’re struggling to structure your business plan. However, you can simply start with a plain document, as long as you include these elements:
There are endless resources available to help you devise a better business plan. However, these steps are the bare bones of what you need. Make sure that you have the best business plan and it can end up being the most essential stage of your business launch. Use your plan to guide your decisions, and your future will be much more secure.