Why and How to Write a Business Plan
Many who take on the business world do so with just an idea. But without proper strategic planning, your new venture is bound to fail. The first step in the right business direction is to write a business plan.
What is a Business Plan?
A business plan is a formally drafted document that mainly consists of three things:
- The goals of the business.
- How you plan to achieve these goals.
- The timeline for achieving these goals.
Your business plan should be your roadmap to success, with practical and actionable steps.
Why Does Every Entrepreneur Need One?
There are many reasons why every entrepreneur needs a business plan for their business, regardless of service, product, or industry. These are the most important reasons:
A Business Plan Acts as a Guide
A business plan is like your playbook. And just like any good sportsman knows, you’ll need to adjust the plan according to what’s happening in the actual match. However, it’s a very good starting point when it comes to strategic planning.
It’s a Look into the Future (But Just 3-5 Years)
To many, the thought of planning out an entire business in a business plan can be quite daunting. Yet, that’s just because they don’t understand that you don’t need to plan and project out a business’s entire existence.
A business plan should only entail between 3-5 years into the future. Furthermore, you should break down your business plan into smaller pieces. What is the plan for sales, marketing, operations etc.? Thus, a business plan in reality isn’t just one massive document containing a big, overarching strategy, but rather a document consisting of multiple mini-plans.
It Helps You Reach Your Goals
You can’t reach your goals if you don’t know what they are. That’s why it’s important to be as detailed as possible when you write a business plan. Besides, you should ensure that each business milestone has a specific date attached to it.
A Business Plan Can Get You Funding
The first thing a bank or investor will ask you, when you’re pitching a business idea for funding, is your business plan. A business plan brings peace of mind that you’ve thought this business through, you’ve done your strategic planning and that the business is a viable one. It will also assure investors that they will see a return on their investment. Therefore, you should keep all this type of essential information in mind when you write a business plan.
How to Write a Business Plan
As mentioned earlier, to write a business plan is not really so hard. It’s merely working your way from point A to Z while doing your strategic planning. To make life a little easier, we’ve compiled this nifty step-by-step guide to help you write a business plan:
There is no one way to write a business plan. However, if you really don’t know where to start, you can search for free templates online or purchase business plan software. This helps you to write a business plan in a way that’s generally understood and accepted by official institutions and professionals. Generally, there are three types of business plans: The traditional, the lean (which is basically a shorter version of the traditional) and the non-profit (these usually have add-on sections).
If you would like to get more helpful business advice and free resources, go to the Consultport Home Page.