Many a business have been built on the back of a well-written business plan. Having a well-written business plan could mean the difference between you flourishing or failing. So, it’s important to consider what you learned from writing your business plan. Is it all you need? Are there any areas where you’d do well to strengthen your game? Let’s find out.
The Anatomy of a Business Plan
Your business plan is essentially a sales document. It provides your potential customers with all the information they need in order to determine whether or not to buy your product or service. Your plan should be no more than six to eight pages long. Anything longer and you’re probably just adding fluff. Keep the following in mind when considering the number of pages you should be aiming for:
- It should be concise and to the point
- It should use plain English
- It should be easily readable
- It should not contain any typos or grammatical errors
- It should not be too wordy – it’s a sales pitch, not a novel!
- It should be unique to you – no templates!
- It should be forward-looking – what are you planning to do?
- It should be objective and not subjective
- It should be easily accessible
The Purpose Of A Business Plan
Your business plan’s purpose is to provide your potential customers with sufficient information to make an informed decision to either buy or invest in your company. You want them to feel confident in their decision and not regretful later. Your plan’s goal is to give you the best chance at securing the capital you need to get the business started. The following are the most common reasons why people write business plans:
- To secure financing
- To pitch investors
- To sell products or services
- To establish brand awareness
- To create a platform for growth
- To create a foundation for the business
The above are all valid reasons to write a business plan, but you want to make sure that you always keep the consumer in mind. Your plan should reflect the needs of your target audience. Otherwise, you’re just wasting your time writing something that no one will ever read.
How To Write An Effective Business Plan
If you want to write an effective business plan, you need to consider the following pointers:
- Thoroughly research the market – understand your competitors and what makes your product or service unique
- Focus on the financials – include revenue and expense forecasts, a balance sheet, and a detailed analysis of the company’s finances
- Create multiple versions – proofread your business plan several times and have others read it too
- Consult with experts – seek out industry experts to provide advice on how to approach the planning process and to help with the planning itself
- Present objective evidence – include tangible evidence to support all of your claims, such as market share, customer numbers, profit margins, etc.
- Be thorough – create timelines, and include any supporting documentation that might be necessary
- Write for a general audience – your plan should not only be useful to investors but should be easily understood by your average consumer
- Have a mentor – an experienced business owner who can help you identify key issues, provide guidance, and challenge you to think outside of the box
As you can probably tell, writing a business plan is a lengthy and involved process. It requires a lot of thought, research, and planning. However, the results can be invaluable – helping you to make the right business decisions and offering you a chance at thriving. So, it’s definitely worth the time and effort!
Where To Start
If you’re new to the whole idea of writing a business plan, where should you start? The answer is simple: the internet. There are countless business plans written by people just like you and me. You can use the internet to quickly find businesses that need capital, or you can use it to find businesses that you can build upon. Which one will you choose? It’s up to you!
Once you’ve decided which business to approach, continue down this path:
- Visit their website and get a feel for what the business is about
- Look at their social media platforms – learn about their customers and what they’re saying about the company
- Check out their blog – see what’s being published and how others are reacting to it
- Contact the company via email – they’re more likely to respond if you reach out to them first via email
- Look at similar businesses – see what you can learn from them about the industry and the type of customers they’re likely to attract
This is a great place to start your research. By getting a feel for the business, you’ll be able to determine whether or not you want to pursue it. Sometimes the name alone isn’t enough information – you need to know more about the company. Get to know their employees, what their pricing structure is like, and whether or not they’re willing to negotiate on trade discounts.
What Do You Need To Start A Business?
If you’re still deciding whether or not to pursue a particular business idea, the next thing you need to consider is how much it will cost to get started. The answer to this question will vary based on how much money you have available, but it certainly doesn’t hurt to know what you’ll need.
Most businesses start out with little or no money, so they have to resort to loans, credit cards, or even sales of their own products to finance their operations. Once they have obtained the funds they need, they can begin hiring employees and paying for production costs. When you’re starting out, you’ll need to have a clear idea of what you need in order to run your business. The following are the basic items you’ll need in order to get started:
- A business name (this is what people will refer to you by – it will be your legal name)
- A logo (something that visually represents your business – if you win an award for your logo, you’ll know exactly what it is you need to aim for)
- A website
- Facebook & Twitter accounts
- YouTube channel (if applicable)
- An Instagram account (if applicable)
- A blog (if applicable)
- A domain name (if applicable)
- A phone number (if applicable)
- A fax number (if applicable)
- An email address (if applicable)
- A mailing address (if applicable)
- A bank account (if applicable)
- A credit card (if applicable)
- Business licenses (if applicable)
- Paperwork (such as tax forms, insurance policies, etc.)
Once you have all of the above, you can move on to the next step.
Step 1 – Create A Name For Your Business
The first step is to create a name for your business. You’ll want to choose a name that is easily memorable and that will fit within your chosen industry. It’s also important to keep SEO (Search Engine Optimization) in mind – if you want your business to be found online, you’ll want to give your website a proper SEO makeover. The following are a few tips on how to create a memorable name for your business:
- Find a word or phrase that is both unique and memorable
- Avoid namesakes – create a brand that is not already in use
- Consider Domain Names – they can be very valuable, especially for businesses in the tech space
- Look At Similar Brands – see what others have done and build off of that
- Use Your Noun (e.g., “Web Development Company” becomes “WebDevCompany”)
- Find A Symbol That Works – a bear, a bee, an anchor, etc.
Once you have your name, you can move on to the next step.