Writing a business plan: 5 top tips
It is essential to have a business plan when you’re starting a business. Your business plan has many functions. It will help you to:
- clarify your business idea
- spot potential problems
- set your goals
- measure your progress
- plan growth
You’ll need a business plan if you want to secure investment or a loan from a bank.
Five tips when writing a business plan
The following five tips will help you to prepare a successful business plan:
1. Outline your business goals
Provide details of how you are going to develop your business, when you are going to do it, who will be involved, and how you will manage the finances. Clarity on these issues is essential for securing finance or investment.
2. Research your markets and competitors
Demonstrate that you’re fully aware of the marketplace that you’re planning to operate in. Highlight significant trends and drivers. You should prove that your business will be able to attract customers despite potential competition.
3. Provide realistic financial forecasts
Show financial projections that support what you have said about your business. Your forecasts should run for three years. The first 12 months’ forecasts should have the most detail.
4. Plan your executive summary
The executive summary outlines the key points of your entire business plan. It is usually the first section that people will read. Include highlights from each section of the document. It is a good idea to write the executive summary last – make it engaging and avoid jargon.
5. Present in a professional format
A well-presented plan will reinforce the positive impression you want to create for your business. Use a business plan template to keep you focused and simplify the process of creating your business plan.