Tweet

10 ideas that will make your next business plan soar.

Guest post by: Andrew Rogerson

Article Overview: Is business plan is a critical strategic document that maps out the business, where it is heading, how to get, what resources it needs to be successful. This article offers tips on how to make your next business plan so much more effective.

10 ideas that will make your next business plan soar.

A business plan is a critical document for any business. PERIOD

SCORE - the Senior Corps Of Retired Executives lists the lack of a business plan as one of the top three reasons a business fails. Any creditable book on owning or running a business ownership states its importance.

If you put a business plan together there are two types. The first is a business plan for a brand new business with second type for an existing business.To create the best business plan that you can, consider the following ten tips.

1. Complete all sections Business plans take a little time to create. Don't rush the process. Part of its value is making you take a thought in your head and convert it to a valuable and considered idea.

2. Focus on cash flow if the business plan is to support a loan application If the business plan is to support a loan application to a bank, make sure the cash flow projections are solid and make sense. If financial planning is not one of your strengths, consider getting help from a professional so you get it right. Preferably work with someone that you will use on an ongoing basis in the business so they can provide continuous and consistent advice.

3. Include a Break-even analysis if the business plan is for a loan application A bank is in business to make money. The bank therefore want to see from you that you understand there will be income and costs but more importantly, how long it will be before you get to a break-even situation and whether you have the resources to get there, and just as importantly, what buffer you have if it takes longer than you think.

4. Financials need to be realistic Points two and three above also concern your finance, but this one is just as important and that is, make sure your financial projections are realistic. If the reader of your business plan doesn't think your financial projections are realistic they will question the rest of the business plan, if they decide to take your business plan seriously.

5. Tell a story but don't hype the story This is not a marketing document for somebody to buy your product or service. It's a document to explain the what, how, when, where, why of both the present and future of the business.

6. Write the plan to the person who knows nothing about the business A business is a living and breathing entity that essentially has two main components; people and money. The goal is to explain in simple terms to anyone who reads the business plan what the business is about and what it stands for and how the thoughtful and proper use of both capital and labor will be successful and what help is required to contribute to that success, if the business plan's purpose is to support a loan application. Remember, write the business plan according to the audience that will read it.

7. Keep the business plan business-like and professional. Not a place for humor or personality. If the business plan is to support a loan application, most lenders are looking to see the direction of the company, whether their capital investment will be used wisely and that the business is something they can believe in.

8. Make sure the details are accurate - don't exaggerate A business plan is a place to introduce and explain. Wherever possible, support opinions, thoughts or suppositions with facts and statistics; this is not the place for unrealistic exaggerations. Every business fits broadly into an SIC or NAICS. SIC stands for Standard Industrial Classification whereas NAICS stands for North American Industry Classification System. Reports and information about these industries are available and provide readily available data about an industry and the direction it's going. Use this data in your reports to give credibility to the business plan. Your local library will help with getting access to this information.

9. Be concise, clear and simple This is a business document. The reader is not looking for a novel, they can get that from a bookstore.

10. Be careful with the use of technical jargon Technical jargon can speak to the sophistication of the business plan but it can quickly alienate a reader who is not familiar with all the terms. Use technical jargon sparingly or provide a simple and clear definition, if it's important to use. Make sure the explanation is generally accepted; not the writer's pet project. If in doubt, have someone removed from the business read the business plan and offer constructive criticism.

If you would like a free business plan template, please visit my website and the samples page and choose either item 7 or 8.

Related Articles
  Practice no matter how good you think you are
  Commitment
  Rats and Body Odor
  Article #28 Looking For A Business That Works Fast In As Little As Six Months?
  A,B,Cs of Business Development: Strategy for the Non-Complex Sale
  Spread The Word Your Word
  Business Ideas: Your Plan and Business Actions
  The Problem With Plans
  Effective Tips on Writing your Affiliate Home Business Plan
  Lost in Space
  Handy Tips to Help Your Creativity
  Stuck in a Pigeon Hole
  Tips to Help Your Creativity
  Ready Set Huddle
  Does Changing Compensation Increase Sales?
  Your billion $ idea
  Just Because You Are "Listening" Doesn't Mean Your People Feel "Heard"
  What If You Could?
  4 Keys to Achieve Success With Your Virtual Teams
  Why Plan? The Top 5 Reasons Female Entrepreneurs Must Plan

Article Tags: Business broker Sacramento, business escrow, business opportunity, business plan, Business plan, business transaction, Buy a business, due diligence, Murphy Business and Financial Sacramento, Sacramento Business Broker, Sacramento business ownership, sell a business, verify facts of a business



Related Forum Posts
Re: How long should a Business Plan be? - Hi Sally, The length of your business plan can very, really, on the type of business you are planning to open up. It also varies based on just how extensive you want to be with your plan. The more ideas you have, the longer the business plan will be. But if you want to just create an outline on the main points that you would like to focus on, then it is apparently shorter. But if you can go for the former, that would be better. THe more details you include, the more efficient it would be for you when it comes to executing them later on. However, it all boils down to your own preference and how you would like your business to be.
Is "Good" - Good Enough - I was just reading the thread about whether people need a business plan and this idea hit me. Someone commented that if you don't have a business plan and you're doing all right - then why spend the time or money. But, is doing good or doing all right - good enough? Maybe you're a business that is getting by and making the bills. What if, taking the time to really evaluate your business with a detailed business plan could help you see places to make some changes which could take your business to the next level? Would it be worth your time? I think it would definitely be worth the time. That could be because I've worked with a number of business owners who were "getting by", but once they committed to having someone evaluate the business - they saw a drastic increase in their revenue. So, why couldn't or wouldn't an entrepreneur do an evaluation to determine where the business is, where it isn't working and where it should be going? This could be done in a business plan format. Just some random thoughts. Shri
Re: Promotion Pack / Prize Pack - [quote="Evan":3tuiine7]Thanks for setting it up Kevin![/quote:3tuiine7] Hi Evan, We're still trying to work something out as Andy explained that his website is not something that is created by himself. He pays to have it and it serves is to capture leads for his Client Relationship management system with SendOutCards. Even if we do critique it, Andy will not be able to make any modifications to it. Would you have any suggestions? I've offered the following options: 1.) We could assess Andy's marketing mix: 4P's and target market and then finish with a question: Will Andy's business sink, swim or soar? sink = lose money and go out of business swim = help Andy make a living soar = help Andy make millions or more! 2.) We could just copy Donny's The Big Idea format 3.) We could use Lisa Johnson's teachings to see if Andy's brand is in tune with the connected generation. i.e. if the right commerce, content, community are surrounding his brand. 4.) Lastly, we could use Martin Lindstrom's philosophy to evaluate the power of Andy's brand. We could do 1 or 2 things: a) determine if he has a 5-dimensional brand (i.e. does his brand engage the 5 human senses?) or b) we could see if his brand is "smashable". This might be more difficult as there are 12 critieria like picture, color, shape, name, icon, etc... For instance, the Coca Cola brand is very "smashable" and effective because even if you saw a broken Coke bottle on the ground with no label, you would instantly recognize that it's "Coca Cola" due to it's unique "shape". Of course, the purpose of this exercises is really just to draw as much forum attention to Andy's business as possible and to get the collective feedback from as many people as possible on how Andy can make more money. For any of these critiquing formats, Andy will have to supply some background information about each "criteria" so that users will have an easier time commenting on each item.
Re: How To Pick Keywords To Rank For - Hi GT, I use both methods in the same article, because the small competitive phrase is a part of the long less competitive one Example: Internet home business ideas to make money online. This long and over used phrase is example for using some keywords phrases: Internet home business, internet home business ideas, home business, home business ideas, make money, make money online, ideas to make money, ideas to make money online. It's hard to rank for all the short ones, but if you use the long phrase as title and first and last paragraph, your post/article will rank faster.
Creators and Their Creations - I understand protecting and idea - I do it with every one of my book ideas and especially the latest. But, to make a succcess of anything, you need to share your ideas with a carefully seleceted group. No one has the time and abilities to handle every single part of a project. And, it goes back to the saying that "Two heads are better than one." I brainstorm all my ideas with a select group and I add new people to that group if there's a specific ability or background or experience etc that my network doesn't have. The plan has served me well Shri


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Purchasing Real Estate using the SBA 504 Loan

Starting a Business a Brave Move or a NoBrainer

The Importance of Master Data Management (MDM)

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.