Planning on starting a business without a business plan is like visiting or navigating a new place without a map. It’s not just difficult but also time consuming and tiring to go ahead without outlining a business plan.
If put in simple words, a business plan is a road-map for your business that sums up what will be the structure of your business, and your short and long term goals with the business. You can visit this site for more assistance on making a business plan: businessplanpathways.com.
What is a business plan?
As stated above, it is an overview of how you plan to build your own business. It doesn’t have to be a long and formal document, but a simple and short one that has all the essential components in it.
Why do you need a business plan?
Business plan helps you get investments. An investor or a bank will only be interested in your business if you have a sound business plan. If it is a bank, they will need some form of security to provide you the loan. In this case you will be needing some angel investors so that you can have enough assets to attach as a security.
If it is an investor, you must keep in mind that they are looking for 3 to 4 times return on their money in 5 to 7 years. They want ventures in your business which makes them a shareholder.
Tips on writing a good business plan
- Your business plan to be concise and simple because of two reasons: 1. You want your plan to be read. If it is a 100-page plan no one will read it and it’s all in vain. 2. You want your plan to be referred by you in the future and is refined/evolved over time. If it’s a lengthy one, you won’t take it out and edit.
- Write the plan, keeping in mind who is going to read them. Do not use terminology that makes them feel exhausted and uninterested. Your investors might not know scientific or technological terms that might be very usual for you.
- Use bullets and numbers to explain your point, this makes it look more organized. Keep the details and explanations of your product easily comprehensible and to the point. It is okay to use an appendix if you wish to provide additional details.
- Go through the basic information that one must provide in a business plan. Make sure to cover all the essential information. Know what are the things that the investor will be looking for and address all their concerns.
- Be realistic in your data. Do not write something in your business plan that will make it hard for you to justify. If it’s your idea that makes your business unique, just concentrate on its merits. Remember, your plan will be off their desk, the very next second, if they find it too ostentatious and unrealistic.
- Use creative elements in your business plan. Use visuals and infographics, this will make your plan look unique and will stand out. The use of graphs and charts will make the details more comprehensible and will put in more details than texts can, that too with clarity.
- Investors will be looking for the amount of funds you will be needing and how will you spend these funds. You should provide a sketch of how much amount will be used in areas like marketing, R&D, sales and purchase of inventory.
A good business plan is very important for the right launch of your business. It is thus important to take a professional help in preparing it. You can visit businessplanpathways.com, for further details and assistance.