Any business expert will tell you that you need a solid business plan before moving forward with your idea. A business plan helps you visualize what the company would look like, the costs to start it, and if your idea is feasible or not.
Business plans are an essential part of any company, no matter what stage it is at. The question, though, is how do you write a good business plan?
At CBS-CBS.com, we have six golden rules that will help you write a solid business plan.
Don’t Be Scared
Writing a business plan can get intimidating very quickly. However, don’t let that happen.
Not every business owner is an expert, but many owners started at the same point you’re at – getting a plan. You’ll likely learn as you go, so don’t shy away from the challenge.
In the beginning, you can have a more basic business plan to get the ball rolling. A simple, single-page plan is enough to get you started. Then, as you move forward, continue adding more to your plan.
Keep it Short and To the Point
A business plan needs to be straight to the point. You’re not writing an essay or novel that requires a colorful description. If someone has to read page after page that could have been summarized in one paragraph, you’ll likely lose their attention.
Your business plan is something you carry with you as you grow your business. That means you’ll need to revise it many times. Having to change a hundred-page business plan will take you quite a long time that you’ll likely neglect it.
Define Your Audience
Unless you’re opening up a general store, your business plan should have a designated audience you want to target. Your audience is a group of people that your company should attract.
Another audience to think of is for who is looking at your business plan. If you’re submitting it to a bank, you’ll want to put more emphasis on the numbers. Maybe you have a partner joining you, in which case you’d likely tailor your business plan a bit differently.
Know Your Competition
Basically, every business out there has competition. The business world is competitive, and you need to be able to identify who your competition is. You should clearly state this in your business plan, along with any research about the competition. Also, make a note of why your idea is different and what makes you stand out from them.
Provide Evidence for Every Claim
You can’t expect to make unrealistic claims on your business plan and have an investor take it seriously. Every claim you make needs to have evidence to support it. By getting in this habit, not only will it educate you more in your field, but it will also help you out as a leader.
Be Realistic
When presenting a business plan, you want your idea to look good. However, you need to do so realistically. For things like the timeline, budget, employees, and supplies, you don’t want to exaggerate anything just to make your idea look better.
Take these six golden points into consideration when writing your business plan. The more prepared you are, the better chance you have of your idea succeeding.