Business Plans: What to Consider When Writing a Business Plan
Have you recently made the decision to write a business plan either to start a business or expand your existing business? If so, congratulations; you are taking a step in the right direction, and taking a step which many business owners decide not to take! Business plans are a great way not only to stay organized and focused on your goals, but also to attract financial assistance from financial lenders or investors.
Although making a business plan is certainly a step in the right direction, you will want to make sure that it achieves everything that you need. To ensure it meets your needs, when writing a business plan, there are a number of important factors you should take into consideration.
Use a Template Only as a Guide
A large number of potential business owners write business plans that are merely derived from a template they have found on the Internet! If you are looking to attract investors or to write the best business plan you can, you have to tailor your business plan to the type of business you are planning on developing. For instance, if you are planning on developing a clothes store, you will find that your business plan headings and content will be different than if you were interested in developing your own law firm.
By all means use a template to get into the right frame of mind, but don’t follow it religiously – different business operate in different ways, so a ‘one size fits all approach’ is not necessarily the best way to write a business plan.
Who Will Be Reading Your Plan?
Who will be reading your business plan dictates what is included in it. For example, a business plan written to obtain financing from a bank will have a different focus than one intended to raise additional capital from private investors, or one intended just to give you a roadmap for the year.
For example, bankers are looking for evidence that you can afford to repay the loan; private investors are looking for the best return on their investment, whether that be in the form of a dividend or capital appreciation. If the plan is for your own use you will be focusing on ways of measuring your performance against goals you have set yourself.
Each of these readers will be looking for different things from the plan, so do your own research as to what these different groups want.
What Format Should You Use?
The format your plan takes will again depend on who the intended reader is. If the plan is for your own internal use, then leaving it on your PC or a plain print-out is sufficient. It doesn’t have to be pleasing to the eye or full of fancy graphics, just as long as it provides the direction you are looking for.
A plan which will be used to obtain finance or investment has to be given more attention with the layout and presentation being more professional. This means more detailed explanation of the business and your plans; supporting information or evidence to back up your projections; use of graphics if it helps to explain complicated ideas.
Your plan should also be printed and bound so that it looks business-like and professional. You should include a pdf version on a CD which will allow the reader to place a copy onto his PC. This little touch goes a long way to demonstrate your seriousness. Your aim is to project your business in the best possible light.
You may also want to create a presentation style business plan. This is Power Point version of your plan which can be used to present your ideas to a group of people such as potential financiers or investors. This style will not replace your main plan but acts as a back up to supplement the details contained within the business plan itself. The trick in preparing a presentation plan is not to overload it with information or data – the key points are all you need.
Should You Write It On Your Own?
Writing a business plan that effectively captures your ideas and vision is not easy. Before committing your time you should assess your skills or experience in this area, especially if your business plan will be viewed by others. Although there is a good chance that you could create your own professional-looking business plan, you may want to enlist assistance from others. That assistance may come from a professional business plan developer or writer. If you do make the decision to write the business plan yourself, it may be a good idea to have someone that you trust review your plan for you and make suggestions. An independent view can bring up many areas you thought were clearly explained and even highlight glaring spelling mistakes!
The above mentioned points are just a few of the many that you should keep in mind. If you have never created a business plan before, it may be a good idea to take the time to research business plans and how they should be developed. You will find a complete guide on how to write a business plan in my e-book ‘The Secrets of Writing a Killer Business Plan’.
Robert runs a number of websites focusing on ideas and tips for small businesses, and people running online businesses. Check out his websites for free newsletters, e-books and articles: http://www.smallbusinesssuccess.biz , http://www.smallbusinessloansecrets.com , http://www.marketingtipsandideas.com and http://www.internetmarketingtipsandideas.com
