Basically a business plan is an argument based on logic. It informs the reader of your function, who you function for, and how your business is going to grow into a great financial success. When you begin your business plan you really need to contemplate the following:
What are your Capabilities?
Let’s say that your idea is likely to develop into a multi-million dollar success and you are able to see exactly how everything fits together. You know the resources you will require, as well as how you will ensure that the appropriate people obtain your products or service. You even know how you will cash out in via an IPO or buyout.
It is all very well and good that you know precisely what you need to do but this is when you need to be honest about what your capabilities are. For instance, do you possess the appropriate resources so as to be able to produce the product? If you don’t how do you plan on acquiring them? What kind of management team do you have? Do they have a proven track record that is likely to impress the socks of a VC? Is there a viable market for the product or service you’re offering and is it expanding? Will you be able to surpass any existing barriers to entry into the industry that you’re targeting? Will you be able to set up new barriers to entry against competitors?
You need to record both what you already possess and what you still require. If you can identify the likelihood of obtaining what you require to get on with the process then you are liable to realise success.
Do you have a cheat sheet?
Nobody is an expert when it comes to writing your business plan. This is why templates are so useful in creating a skeletal structure from which to work. The template needs to cover the bases for the formation of a business plan and must include: Executive Summary, Company Analysis, Industry Analysis, Customer Analysis, Competitive Analysis, Marketing Plan, Operations Plan, Management Team, Financial Plan, and Appendix.
The template also needs to include subheadings that you can fill out properly and accurately.
Obtain the Opinions of those you trust.
Let others take a look at your business plan and invite their feedback. Make sure that you only show it those people whom you trust to not steal your business idea, although the idea is not as important as the ability to bring it to fruition.
When you get the feedback from the people with whom you shared the business plan you might find that they have raised issues that didn’t occur to you and therefore you will be able to improve upon the initial plan.
Compile a Schedule
Composing a business plan takes a while. If you compile a schedule you will complete it all the more quickly. You might be surprised to learn that many entrepreneurs complete their plans within a week. They accomplish this by dealing with two sections a day for five days, devoting 8 hours per day to the process.
Make sure that you stick to your schedule.