do’s and don’ts of your business plan
TRANSCRIPT
GrasshopperAcademy
Do’s and Don’ts of Your Business Plan
Get expert advice from successful professionals, who’ve been in your spot, on how to make your business plan standout.
A business plan is your guide for creating and building your business. Writing a business plan for a new business helps you determine whether or not the business can be profitable before you, lenders, or investors spend a lot of money to get it going.
Doing the work makes you focus on who the market is, how you'll reach them and why they'll buy from you. It also makes you look at all the costs involved with running your business and profit margins.
For an existing business updating a business plan regularly can help spot changes in your costs and your markets so you can take appropriate action as well as consider how adding new products and services may affect your bottom line.
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”Janet Attard Founder BusinessKnowHow.com
When writing a business plan, there are a few do’s and don’ts…
First, a business plan should include the essentials…
Title page… table of contents... company descriptions & history... Executive summary.
The goal is to pique interest by providing a quick overview of your company, products or services, and the problems they will solve, mission, objectives, and how you'll profit. If you're using the plan for a loan or to find investors, state how much money you're looking for and how the money will be used.
The executive summary appears at the beginning of the plan, but should be written last.
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”Janet Attard Founder BusinessKnowHow.com
A business plan should answer the following questions…
Description of Products & Services. What are you going to sell? What solutions do your products solve and how they differ from your competitors? What stage are the products and services at? (Do they exist or are they yet to be developed?) How will they be priced? Are there patents or trademarks in place? Any licensing agreements in place or planned?
Market Analysis. Who is your target market? How big is the market? What are their distinguishing characteristics ? Who are your competitors? Are there any barriers to entry in the field?
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”Janet Attard Founder BusinessKnowHow.com
A business proposal must include multiple topics, most of them will be determined from the use of your business proposal, what business it is and who you are as a business person. These questions need to be answered and intertwined in the fabric of the business proposal:
WHY. Continue telling the reader of the business proposal why the market needs this business. Don’t focus only on the services, focus more on the values you are providing with your business.
WHO. Who will your business serve? Define the demographic that your business is targeting.
YOU. You have to demonstrate that you have both experience, ability and preparation to be starting and running your business.
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”Monica MagnettiCertified Professional Coach & Business Consultant and CEO Luna Coaching
Do NOT include…
Guesses or unrealistic financial or marketing projections. While you may think that half of all working mothers will want to buy your new car pool scheduling app, you need to do solid research to determine the number of people who need it, what they use now, what they'd be willing to pay for it, and how many of them you might realistically persuade to buy your solution.
Hype. If you're trying to raise money or get a loan, the people who will read your plan aren't going be interested in hearing you describe your product as the hottest new widget to hit the market. Typos. If you can't make the effort to proofread your business plan, how much attention to detail will you put into building the business?
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”Janet Attard Founder BusinessKnowHow.com
Do project your business plan for 1-5 years…
If you're seeking investment from others, having a five year projections may be a requirement. Otherwise, one or two years of financial projections should be sufficient.
In terms of how you think your business might expand its product or service offerings, plan for at least a year.
Dequiana JacksonCEO Inspired Marketing, Inc.
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Once you know the goal of the business proposal, who it’s directed to and the format required, you are able to know what (and how long) is requested of you.
The first year your business has to absorb costs and initial expenses, showing the potential growth in clientele and income in the span of future years offers a better understanding of both you and your business.
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”Monica MagnettiCertified Professional Coach & Business Consultant and CEO Luna Coaching
Do take care of how you style & format your business plan…
Language: Speak to your audience. If this is a plan that's going to a bank, it should be more formal than a plan that is going to be read by the founder, his or her partner(s) and the first few employees.
Still speak plainly.
Don't dress up your plan with flowery words thinking it'll make it more impressive. Smart people will see right through them to get to the heart of what you're trying to say.
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”Dequiana JacksonCEO Inspired Marketing, Inc.
The printed document should be neat and be easy on the eye to read.
Length should be as long as it needs to be to show you understand the market; that you can produce and deliver the products/services profitably and manage the business.
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”Janet Attard Founder BusinessKnowHow.com
Do make your business plan stand out…
What differentiates your business proposal with the hundreds of business proposal available is … you.
Write from a place of passion while sticking to the format. You, your business, your demographic have to interweave organically and in harmony.
Show your confidence in your business, your product, yourself from a place of serving rather than just selling
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”Monica MagnettiCertified Professional Coach & Business Consultant and CEO Luna Coaching
Writing Your Executive Summary
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