1. Do a lot or do a little
Sometimes writing a business plan is a task confined to the bottom of an in-tray or dismissed entirely as an arduous chore. But remember - a business plan can be as long and detailed or as short and snappy as you like. And because your business plan should ideally be a dynamic, working document, you can add to it as you go. Those that appreciate the virtues of writing a business plan may argue that the more you put in the more you get out. But crucially, it’s important to realise that at the very least, a little planning is better than no planning at all.
2. Write for your audience
If you are preparing a business plan to attract interest from potential stakeholders, such as investors, banks or partners, looking at things from your audience’s perspective helps you decide what pertinent information to include. Investors will expect to see detailed financial forecasts and growth plans illustrating your suitability for investment. If your audience is yourself, in that you are preparing a business plan for your own day-to-day use, you might choose to focus more closely on other areas such as detailed operational or strategic plans.
3. The art of the start
If your business plan fails to interest and engage from the outset your audience are likely to switch off. The ‘executive summary’ is positioned at the start of a business plan, acting as a synopsis of key messages. It should inspire readers to read on, or alternatively - if your business plan is for internal use - it could serve as a handy reference point or motivational pick-you-up on a bad day.
4. Focus on opportunities and strengths
Your business plan is your message to potential stakeholders - and yourself - that your business has potential. An emphasis on identified opportunities and strengths helps reinforce your business’s key success factors. But be realistic. If you make financial forecasts based on outlandish evaluations of your potential, you might run into problems later on.
5. Think strategically
Objectives are best pursued with sound strategies. Your business plan is an opportunity to flesh out strategies capable of delivering your aims. Thinking strategically makes your business plan more than just the necessary paperwork to raise finance or attract investors. As a working document, your business plan can be a truly functional resource to steer your business in the right direction.
6. Know your market
Your marketplace has the potential to influence your objectives and strategies, dilute your strengths, or impact your finances. It therefore follows that fully understanding your marketplace is vital to future planning.
7. Highlight key people
Investors often buy into people, not just businesses, so emphasising the strengths of your key personnel is important if you are looking to raise finance. If you are preparing a business plan for internal use, the act of writing down the strengths and core responsibilities of key staff could be a useful exercise, if only to confirm that your people’s skills are fully utilised.
8. Number crunch
Numbers are important because, ultimately, your business’s potential is only as strong as your financial plan. Realising your future objectives may require capital investment or adequate cash flow, and your potential profitability will be high on the list of questions from an investor’s perspective.
9. Keep structured
A sensible structure helps you compile, write and use a business plan effectively. Potential investors and stakeholders will expect to see information laid out in a logical and easily navigable way. Structuring your plan may help you write and use it too. For example, you could divvy up different sections to be managed by different people (based on their knowledge and strengths), bringing plans together bit by bit. Visit the Business Link website for links to examples of sample business plans that follow typical structures.
10. Keep it up
Plans are made for doing, so it’s important to revisit your business plan regularly, if only to make sure you are achieving what you set out to. If your plans turn out to be unrealistic, set new goals and evaluate why things didn’t go to plan. There may be reasons to explain differences between your plan and reality, such as a shift in strategic direction or a downturn in market conditions, but consciously making the comparison helps you differentiate between an intentional change and a loss of focus or direction.
More info - Prepare a business plan
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