How to Write a Perfect Business Plan

Whether you’re a new startup or an established corporation, every business needs to have a written business plan. This is a valuable document describing the nature of your business, your sales and marketing strategy, and financial background, and containing a projected profit and loss statement. Its purpose is to provide direction and attract investors; a business plan is vital for the success of your organization. But, how do you write a business plan?

A recent study showed that those who completed business plans were nearly twice as likely to successfully grow their businesses or obtain capital as those who didn’t write a plan. 

This makes sense when you think about it. For those businesses who have a document providing top-line guidance and drilled-down specifics about the future of the enterprise, goals and business planning are surely more likely to succeed.

Writing a business plan doesn't necessarily have to take a long time or be a gargantuan effort. You can create a plan in under a month, working at your own pace. You can also use a presentation program like PowerPoint to save time and make it easier to share.

SBA.gov recommends that a business plan include these nine vital elements to clearly and concisely convey the goals and projections of your company: 

• Executive summary — a snapshot of your business
• Company description — describes what you do
• Market analysis — research on your industry, market, and competitors
• Organization and management — your business and management structure
• Service or product — the products or services you’re offering
• Marketing and sales — how you’ll market your business and your sales strategy
• Funding request — how much money you’ll need for next 3 to 5 years
• Financial projections — supply information like balance sheets
• Appendix — an optional section that includes résumés and permits

Creating the perfect, water-tight business plan, however, will require more than just knowing the headings and sections that make it up.

Research

It’s your responsibility to know everything you can about the industry that your business is entering. Read and research everything you can get your hands on, and talk to your audience. This will take some time, but it’s an investment that will pay back handsomely. To write the perfect plan, you must know your company, your product, your competition, and the market intimately.

About us

Company profiles are often found on the company’s official website and are used to attract possible customers and talent, as well as to clearly communicate to anyone who you are and what you stand for, what your story is, and a little about your history and background. However, your profile can also be used to describe your company in your business plan. It’s not only an essential component of your business plan; it’s also one of the first written parts of the plan.

Documentation

If you’re not already a fully funded enterprise, then you’re going to want to impress those who hold the purse strings. Investors want to make sure that your business is going to make them money. Because of this expectation, investors want to know everything about your business. To help with this process, document everything from your expenses, cash flow, and industry projections. Also, don’t forget seemingly minor details like your location strategy and licensing agreements.

Marketing plan

Every business needs a marketing plan. It doesn't matter if you are a one-man service provider or a major corporation with 1,000 employees across multiple states. Marketing is what drives sales, and without sales, you don't generate the income required to sustain long-term survival.

As important as marketing plans are, many business owners don't devote enough time and resources to them. Great leaders take the time to regularly develop marketing strategies and plan to build a company with a purpose. A great business plan will always include a strategic and aggressive marketing plan.

Care factor

Whether you’re sharing your business plan with an investor, a customer or a team member, or even a friend to get some feedback, your plan should show that you’re passionate and dedicated and that you actually care about your business and its future, and why.

You could discuss the mistakes that you've learned, list the problems that you’re hoping to solve, describe your values, and establish what makes you stand out from the competition.

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

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David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC