Before you launch your business, you need to make a business plan. This plan is vital to wooing investors as well as helping you envision the steps you need to take to achieve the success you are seeking. However, unless you went to school for business, the chances are good that you have little to no experience at writing a business plan. Below are two tips to help you create a high-quality business plan.
This tip is two-fold. First, a business plan should be long enough to cover everything important, but short enough that no one is going to be bored to death reading it. Cut any filler and keep it direct and to the point. Second, do not expect it to be perfect. If you are constantly looking for errors, you will find them every time—and you will never finish. Your business plan needs to be a great business plan, but it does not need to be a masterpiece.
While there are only two tips in this article, number two is a big one. There are three bases every good business plan must cover: analysis, action plan, and projections.
The analysis should be focused on three different areas: market, industry, and competition. It should be detailed enough in its data to give both yourself and any investors useful information for developing a strategy.
The action plan should focus on what you are going to do to manage employees, manage operations, launch your marketing plan, and drive your sales. It should be clear enough that you can start your operations without feeling like you are struggling to stay above water. However, you do not want it to be too detailed; when you provide too much detail, you tend to overthink things and become too attached to the plan when you really should be flexible and ready to adjust as needed.
Your projections should detail traction and sales. You want to show what you expect on a quarterly basis for the first year of operations and then you could also create yearly projections for the next five years.
If you keep it direct and to the point while covering these three bases, you will have a perfect business plan.