Three Tips for Writing a Business Plan

Writing a business plan doesn't have to take months and months, compiling pages and pages of text. You can create a plan in a relatively short time, working at your own pace.

There are many pre-made templates that can be used nowadays. Use a presentation format like PowerPoint or Keynote to save time, and make it easier to share.

Here are some things to keep in mind when putting together your presentation:

Who are you talking to?

Know your audience, and make sure that your presentation is geared toward them. The starting point for any business plan should be the perspective of the audience. What is the purpose of the plan? Is it to secure funding? Is it to communicate the future plans for the company? Tailor the plan for different audiences, as they will each have very specific requirements. For example, a potential investor will seek clear explanations detailing the proposed return on their investment and time frames for getting their money back.

Do your homework

Market research is really important. Make sure that your plan includes reference to the market size, its predicted growth path, and how you will gain access to this market.

Know your competitors

If you’re not the first to market, then you’re going to have competitors. Research, research, research. Know what you're up against. Why will you be different or better than the other products on the market already?

Details

The devil is in the details. Make the plan concise, but include enough detail to ensure the reader has sufficient information to make informed decisions. The plan should reflect a sense of professionalism with no spelling mistakes, realistic assumptions, credible projections, and accurate content.

Not all companies are the same, of course. You'll need more detail if you're raising money or asking for a loan or taking on a risk like investing. But no matter your situation, you need a plan.

A study by Babson College found that start-ups with a business plan raised twice as much capital as those without one within the first 12 months.

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