Every company needs a written business plan in order to establish firm guidelines on how the business should go. This document can be used to convey the business goals and how they can be achieved. On the other hand, a business plan is also important to attract investors, the ones you should get impressed with. Since it is vital for your organization, you should know how to write an effective one.
- Do Your Research
The first thing you should have done before writing a business plan is research. You have to know better than anyone what you are going to create and the industry you are going to enter. Take your time to not only analyze your product but also researching the objective expertise and the market.
Read everything that has a connection with the business and also talk to your audience. You are even suggested to spend time twice as much for researching, thinking, and evaluating as you take for actually writing the document. This way, you will be able to know about the product, your business, the competition, and the market very well. Only with the whole information, you are capable to create a perfect and effective business plan.
- Decide the Purpose of Your Business Plan
Originally, a business plan is intended to be the outline of your business where you could understand the nature of your business, the marketing strategies, financial background, and an estimated loss and profit statement. However, there are different purposes for your plan can also serve.
For example, if you are writing a business plan to attract investors, then you should focus your document to its target. On this matter, it will be best to keep the document concise and clear as much as possible.
- Make Your Company Profile
A company profile is essential to your business plan and commonly written on the first pages. There are several elements that should be contained within a company profile including the history of your company, the products or services you have, the audience and the target market, the resources, the uniqueness of your business, and how you will overcome an issue.
- Include All Aspects of the Business
If you are making the business plan with attracting investors as your main goal, you should let them know that your business is going to be profitable. The potential investors are expecting such thing and that’s why you should present all aspects of your business.
On this part, you are advised to include various documents from cash flow, the expenses, and industry projections. You should also contain the minor details like the license agreements and the location strategies.
- Present A Marketing Strategies
An effective business plan will always have marketing strategies inside it. The more aggressive and strategic your marketing approach the more perfect your business plan is. When you describe the objectives of your marketing plan, you should pay attention to marketing tasks and why you choose it for the whole year onward.
Meanwhile, at the implementation part, you can focus on who, when, where, how and all practical things. The marketing plan should also have a budget section where you can write the allocated budget for each marketing activities.
- Make Your Business Plan Familiar with Your Audience
You should realize that the readers of your business plan come from different parties and each of them has certain interests. So, it’s better to concern on the exact interests when you are making a plan for that particular readers.
If you are going to submit your business plan to bankers, they’ll likely more interested in cash flow and balance sheet. Meanwhile, the venture financier will be more focus on your management team and business concept. Manager of your employees will use the plan as guidelines.
- Share Your Passion
Whether it’s the customer, investor or your own employees, you should convey how passionate and dedicated you are through the business plan. You can describe the values of your business, the mistakes you’ve learned, and the problems you want to overcome. By sharing the reasons why you really care about the business and the plan, you will be able to establish an emotional connection so they will sincerely support your company.