A business plan is like a map that shows how you will get your business from where it is now to where you want it to be. It tells what your business does, how it will make money, and how it will reach its goals. A business plan includes rules that help you make sure the business stays on track. These rules help you make decisions, set goals, and stay on the right path. Download a business plan template here.
1. Write for your audience
When writing your business plan, the most important consideration is your audience. You want to attract people who will be interested in investing or partnering with your business. To ensure your plan is accessible to all, use language that is simple and easy to understand. Avoid using industry-specific jargon; instead, use common English to make sure your message is clear and comprehensible to non-professionals.
2. Keep it concise
Make it to the point! When creating a pitch for potential lenders or investors, avoid including unnecessary details that could bore them. Keep your language clear, concise, and as close to a conversation as you can.
3. Check the competition
Knowing what your competitors are doing can help you stay ahead of the game and give you an edge in the market. Don’t underestimate the importance of a competitor, no matter how they compare. It’s important to explain the differences between you and your competitors so your audience can understand the benefits of your business.
4. Keep clear details
Writing a business plan is an important step in achieving success. Make sure your plan is clear and concise with all the necessary details. Use professional language and correct grammar and spelling to make a good impression on potential investors and lenders. Include accurate content with realistic assumptions and credible projections to make your business plan stand out.
5. Aim for the opportunity
Take a few moments to clear your head and ask yourself why you are writing this plan. If, for example, you are seeking investment for a business, it is important to clearly articulate the opportunity for investment. Capture the investor’s attention with a clear explanation of the potential return on their investment, and why it’s a better option than simply keeping the money in the bank. Detail your unique selling proposition (USP) and the advantages that come with investing in your business or purchasing it from you.
6. Cover the key elements
To create an effective business plan, research to determine which sections to include. There are many helpful websites that provide the necessary information to cover all aspects of the plan. Make sure to use vivid language and add colorful charts and spreadsheets to make the plan more engaging.
7. Show your numbers in the right way
When evaluating any business venture, potential investors will focus on the numbers. To give them a realistic understanding of the venture’s potential and success, it is important to create a detailed budget that takes into account the estimated costs and sales. Additionally, preparing a break-even chart and cash flow statement can help investors visualize their return on investment. While there may be a lot of start-up costs early on, investors are looking for the potential of the business, so it is important to emphasize that.
8. Have an Executive Summary
Once you have finished creating your business plan, it’s important to write an executive summary. This part should be read first by prospective investors, as it provides a quick and concise overview of your business plan. Be sure to keep the same team of writers and contributors involved in creating your business plan, as consistency will help make your document more convincing. The executive summary is exactly what it sounds like – a summary of your entire business plan.
9. Get your document checked and reviewed by experts
To make sure your business plan is as good as it can be, it’s important to get it independently reviewed. Ask someone who has the necessary knowledge and experience to take a look at it and provide feedback. Choose someone who is not involved in the planning process; they’ll be able to give you a fresh perspective and help identify any missing elements.
10. Implement and Go!
Now that you have all the necessary elements for a comprehensive executive summary, it’s time to implement your plan. To wrap your summary up and make it stand out, consider asking a thought-provoking question. Ensure you format your summary properly and use clear, concise language that conveys your business’s potential success. With content, strategies, and reasons that illustrate your business’s success, you’ll be sure to invite investment and interest.
Download a business plan template and start creating your business plan.