10 Tips to Write a Business Plan

A business plan is like a compass that provides navigation to find new pathways. A good plan focuses on promoting your business, explaining your objectives and managing your operations. Once you pen down your goals, you will come up with new business strategies. Business plan is a map to success.

The following are the most common tips of writing a business plan:

1.  Develop a Precise Business Plan

Your business plan should be written precisely so it can be easily read. Formatting and wordings should be defined and to the point. Avoid using long sentences. Provide bullet points and explain them when it is required. Do not use jargons, acronyms and buzzwords, i.e., NL means “not listed” or IMP means “important” because everyone does not know about them. 

 2.  Create a Vision

Some people would just roll up their sleeves and dive deep into the details of their business, evolution of their products, studying marketing strategies, and focusing on the competitors. But they need to hold on, go back, and write a vision statement that clearly defines the set of values of their organization. Second, develop a mission statement that fulfills short term goals and concerns. This will result in a big picture and road map to further development in your plan.

3.  Budget and Financing Forecasting

An essential element of a business plan is “budgeting and financial forecasting.” You must have sound knowledge about your customers, market conditions, competitors and the industry before you make the budget.

4.  Customers are at Priority

“Customer is the king” and all your business depends on your customers. Learn about your customers and develop your business plan around the needs of the customers.

5.  Competitors

Once you start a business, there are a lot of competitors ready to take over and create a niche for them. Study your competitors as they provide information about what works and what doesn’t.

6.  Managing Risk

When you are writing a business plan, try to understand and manage the risks involved. A good business plan focuses on SWOT (Strength, Weakness, Opportunities and Threats.) It will provide strategies to meet the possible threats and take advantage of available opportunities.

7.  Be Open towards Others’ Experiences

Be open towards the opinions and experiences of other people. Find someone who studies your plan objectively, pinpoint various issues, and also highlight new areas and strengths.

8.  Executive Summary

Include an executive summary that sums up your entire business plan. It will help the time pressed investors to understand your business plan without going through the whole document, and enable them to understand the new product or service.

9.  Cover All Key Areas

There should be extensive research on which elements need to be incorporated in a good business plan. For example, the key areas include organization profile, product/service, target market, marketing and management team, competitive market and operations, and financial standings. Your plan should reflect simple color charts and spreadsheets.

10.   Plan Implementation

Your business plan should be a document that contains the deadlines to be met, tasks and responsibilities assigned. It should be updated constantly as per the market demand and customer need. A good business plan that covers all the aspects mentioned above will help the organization to achieve its goal.