3 Ways to Perfect a Business Plan

Whether a multi-national conglomerate or a local start-up, there is no denying the importance of a well-written business plan.

Whether a multi-national conglomerate or a local start-up, there is no denying the importance of a well-written business plan. A compelling and comprehensive business plan will steer your business in the right direction and help the company attain financial goals.

In essence, a business plan is a formal document aimed to give potential investors an overview of your business plans, plans to reach goals set and other related background information of your business.
Here are three simple ways to nail the perfect business plan.

 
Ace the Components of a Business Plan
Understanding the essential components of a great business plan is imperative. These seven fundamental components make up a business plan, each addressing an aspect of the business’s product or service in detail.  

  1. Executive Summary: An excerpt summarising the key points of your business plan. Key notes to include would be your company’s background, unique selling point, product or service features, future plans and financial information.
  2. Company Description: Basic information about your company, background, products or services offered, clients and how you have succeeded in making a change in the industry.
  3. Market Analysis: This highlights the industry’s current climate, trends taking place in the industry, and information on any proposed pricing structures.
  4. Competitor Analysis: Who else has a similar product or service? What are their strengths and weaknesses? Concentrating on your closest competitors, this component streamlines industry competitors and helps predict potential pitfalls the business might face in the future.
  5. Customer Analysis: This puts the target market into perspective. Information regarding their demographic, psychographic and financial profiles should be included here.
  6. Marketing Plan: Also known as the “Development Plan”, this component gives potential investors an idea of how the business would function over time, and the kind of marketing strategies planned.
  7. Financial Plan: Depending on the intention of the business plan, this is an essential component to seek funding. Cover in detail how much funding is needed, what assets you must obtain, where the money is going to, how long the funding is expected to last and when the business will expect to see tangible profits.   

Quality over Quantity
As a rule of thumb for a business plan or any other official report, quality of content trumps quantity. Keep sentences short and tight, and address key points in a concise manner. Bear in mind that prospective investors and venture capitalists go through many business plans a day, so having a lengthy report may actually work against you.

 
Fine-Tune to Suit
To further increase your chances of approval, try to tailor your business plan to a company’s goals and priorities. Take for example, the potential venture capitalist firm you are seeking funding from is environmentally conscious. Be sure to include examples of how your product or service will help decrease greenhouse gases or if it uses recycled parts, etc.