These are the 5 necessary steps for creating a professional looking business plan (BP).
Create an Outline
Utilize a traditional business plan template. The ten areas of a business plan are Executive Summary, Company Analysis, Industry Analysis, Customer Analysis, Competitive Analysis, Marketing Plan, Operations Plan, Management Team, Financial Plan and Appendix. Complete all areas in which you are already knowledgeable about. Continue to follow the template. Do not change anything and stick with the traditional business plan format. Investors must have the ability to find the information in which they are accustomed to requesting.
Conduct Research
Most of the research done will be for the Industry Analysis, Customer Analysis and Competitive Analysis areas of your business plan. Utilize credible resources when researching marketing facts, statistics and patterns. When conducting research for the Marketing, Operation and Financial Plans, look into things such as the beginning costs, operating costs, possible future locations and the human resources that are within your niche. Also research your company. This would consist of such things as looking into the labor laws, which will be needed for the Company Analysis section of your business plan.
Devise a Plan
Once you have conducted your research, make a decision as to whether or not you will continue on with your business plan. You might find out that your intended business does not have a viable market. However, if a market is available, use your research to find and pinpoint all of the available streams of revenue from the targeted market to the business assets. This data should be included in your Marketing Plan. Also, explain how the company will run, which should be indicated in the Operations Plan.
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Compute Financials
his tells you about your Financial Plan. Activities, costs and revenues should be listed via accounting terms to produce the very important projected financial statements for your business. Utilize the financial template in your spreadsheet software package to complete a reliable financial plan. Or, you may choose to speak with an accountant to help you with this. When it comes to your business plan, Investors spend more time going over this section than any other section of your business plan.
Create a Narrative
Create your business plan within this order: Industry Analysis, Customer Analysis, Competitive Analysis, Marketing Plan, Operations Plan, Company Analysis, Management Team, Financial Plan and Executive Summary. The Executive summary says what the entire business is all about. It should do the most to get the attention of the Investors and be the main piece information that gets the Investors to read the entire business plan. Put the Executive Summary all the way at the front of your business plan, then attach the Appendix. Remember, that the Appendix is where all of your supporting materials are kept. These are usually things such as additional information and graphs.
An everyday mistake that a majority of new business plan writers create is to concentrate too much on their own business, at the expense of really knowing about the market and industry in which their business operates. Do not forget about this and you will create a business plan that will hook your Investors.
All the best,
– Peter