Writing a strong business plan is not an easy task; you need to have a clear idea of what to include and what not to include. And if you are currently struggling to make one, you need to check this post.
If you want to get serious about starting a business, you need to create a business plan.
A business plan is a formal document that outlines your business goals, directions, finances, workforce, and business plans for the future. Other than to align your goals and your workforce, all business plans are created to attract investors and raise capital.
How do you make a strong business plan?
#1: Write a business plan tailored to your audience
Who are you planning to discuss your project with? An investor? A stakeholder? A financing company or bank manager? The purpose of the plan is to secure funding. You need to provide strong facts and figures that can attract potential investors or provide a clear explanation for bank managers to approve your business loan.
Here are a few brief tips on how a business plan should be outlined according to the audience:
- A business plan for internal use must include business movement, including workforce, and business finance. Also, you need a clear goal for the business’ future.
- A business plan for potential partners should include figures of what your business can offer, how your partner can contribute to your business’ growth and success, and facts about KPI’s to hit.
- A business plan for investors and bank managers must cover financial flows and projects that will help sustain your business.
#2: Do a thorough market research
To supply facts and attract investors, you need to do thorough market research. Also, you need to emphasize the market opportunities that will help develop and sustain the business for the next 5 – 10 years. Also, do not forget to research possible business threats, hindrances, and limitations with solutions and management.
#3: Create a solid business plan structure
To avoid forgetting important points when writing a business plan, you have to create a solid business plan structure. The structure should include information about your potential consumers, the market standings, future objectives, and your business flow.
Here is how most business plans are outlined:
- Cover page and table of contents
- Executive summary
- In-depth description of product or services.
- Description of the state of the market, the risks, opportunities, and trends.
- Description of prospective consumers with tactics and strategies on increasing customer loyalty and turn-out.
- Market plan, including strategies on business promotions and solutions when meeting business challenges in the future.
- Description of your financial flow, projections, and resources.
Check the website of Ramesh Dontha for downloadable business plan templates and other useful tips in creating a strong business plan.
#4: Be realistic
Be realistic when making a business plan. Provide facts that will help show your business plan’s credibility. Avoid being overly optimistic when writing a business plan. Think like a banker and write your business plan logically.
#5: Ask for assistance
If you think your business plan is not good, you can always ask assistance from a family, a friend, or a professional who has a better understanding of business plans and how to make a powerful one.