What to Consider When Writing a Business Plan
If you are considering founding your own company, then it is time to start thinking about writing a business plan. With this document, you have the chance to determine your goals and objectives and determine your business’s managing style. In addition to this, your business plan includes all the important information about your industry and competitors. However, one of the most important roles of your business plan is that it is a comprehensive guide for all the investors you are trying to approach.
As you may already understand, a business plan is essential for every company. In this article, you are going to discover what you need to consider before you start writing it.
#1 Have a Clear Vision
The key to writing a business plan that can successfully communicate your objectives is a clear vision. Before you even start forming your business idea, you need to determine what you are aiming to accomplish within your selected industry. This way, your business plan will never lose its focus by showcasing what makes your company special.
#2 Make Your Business Plan Short and Concise
One thing that is often overlooked when writing business plans is their length. You might think that adding as much information as possible is a great idea, but the truth is, that hardly anyone will read a 50-page long document. If you need to include additional documents that support your claims, you can add them to the appendices that the interested parties can refer to.
#3 Determine Your Company’s Business Model
Determining your business model is a crucial part of every company. Therefore, it’s a great idea to thoroughly think about it before you include it in your business plan. Try to create as many what-if scenarios as possible to find out which business model reflects your vision. Then, you can start writing or altering your business plan so that it implements it.
#4 Keep Your Target Audience in Mind
Your company’s business plan is a document with numerous potential readers. For instance, it is essential for your employees and board of directors so that they understand the philosophy of the company. At the same time though, it is a document that will be presented to your prospective investors. For this reason, you need to write it in a way that all their readers will be able to understand.
#5 Invest in Market Research
One of the trickiest parts of writing a business plan is backing your claims with reliable market research. It is highly probable that the investors you are pitching to are already aware of your industry, and thus, insufficient research might bring you the opposite results.
#6 Don’t Be Afraid to Take the First Step
Writing a business plan definitely sounds intimidating, especially if you aren’t a business expert. Nevertheless, over time you can find all the resources you need to start writing this important document. Keep in mind that you can always start by writing a simple business plan, which you can gradually enrich with all the information and details you gain.
If you want to test your business ideas, the Don Ryan Center for Innovation is by your side to provide you with our expert feedback. Write your company’s business plan today!