While there is no universal format for business plans; there are specific rules that anyone writing a business plan should stick to. This guide will take you through crucial advice with the aim of helping you to write the best business plan possible.
Include Key Components
- The business opportunity – who you are, what you plan to sell and why
- Your objectives – personal and business
- Your production methods, where the business will be based, how many staff you are likely to need
- The market – what it is, how big it is, where your product or service fits in, how you intend to sell it
- The competition – who your main competitors are and how your product or service differs from theirs
- Your management team and staff
- Your sales and marketing strategy
- Your production costs and who your suppliers will be
- Any relevant qualifications or experience you have
- Financial projections – profit and loss forecasts for two to three years, a cash flow forecast and balance sheet
- How much money you will raise, what it will be used for, and how and when you intend to pay it back
Be Concise
Being concise is extremely important, and there is no overstating that. And this is not always easy, seeing as even the smallest business has plenty of valuable information that it would need to present to potential investors, lenders, or employees.
However, straddling that line between providing too much information and too few details is crucial. While you don’t want your business plan to appear not thought through enough; you also don’t want to drown the reader in irrelevant information.
Use Correct format
You should aim for 8-12 pages of clear, concise information, typed on one side only and well laid out, so it is easy to read. Keep it simple – put additional information such as market research data in an appendix. Quantify as much as you can – your business plan is likely to be read by people used to dealing with figures.
Correct Spelling and Grammar
Besides that, it is also essential to take great care when it comes to spelling, grammar, and syntax while working on your business plan. Not showing enough attention to such details will leave any reader sceptical regarding your business prowess and attention to detail in the boardroom.
And luckily enough, there are plenty of templates for business plans and accompanying presentations you can find online. All you need to do if you want to quicken the process is to find the one that suits your business best. And then fill it with your specific information.
Add an Appendix
The appendices are where you attach supporting documentation to your plan. It is rarely useful to include detailed evidence within in the plan itself. Instead, summarise the evidence and how it supports your claim, and refer readers to the appropriate data in your appendices instead. This allows your plan to flow better whilst still demonstrating that you have researched thoroughly. It also allows your reader to verify what you say.
Any data you refer to within the plan, such as studies, tables or graphs should be included here. This is also somewhere you can put supplementary material relevant to your project, such as photos of your product, copyright certificates, example designs, technical descriptions. Make sure your appendices are clearly labelled so that your reader can easily find the appropriate information. If your appendices are very long, consider putting them in a separate document, as a bulky business plan can be off-putting.
