Note: This is the second of a three part series to educate business people on the basics, best practices and tricks of writing business plans. You can find Part I here.
By creating a business plan, you will be ensuring clarity and transparency at all levels long before the start of your business. However, just drafting a document based on its components isn’t enough; you need to know the best practices of creating business plans, especially if you’re sharing them with an investor. So, read on to continue your education on how to create business plans.
Keep it Simple!
How can such complicated data be portrayed in a way that is understandable to all? Rather than using jargon and terms that make no sense, keep the language simple. Such plans are an essential commodity to a business, so ensure that they’re easier to understand and comprehend. However, for certain ideas, this task is even more difficult to accomplish. Therefore, tread carefully and follow these tips.
- Explore difficulties and opportunities thoroughly. Your business plan will only be great if you consider all scenarios and obstacles.
- Prioritize the solutions for the problems at hand.
- List the solutions your business offers in terms of the desired outcome.
Define Roles for Every Task
For each action allocated, there needs to be a person responsible. This division of labor will make sure that each owner acts according to the guidelines and milestones set within the desired time period. Since everyone is on board the process, the tasks will grow less strenuous.
Create a Credible Statement of Goals and Objectives
Since goals drive all business activities, they can also be considered as a motivational tool for employees. Therefore, those you set should be broad and not limited in any way. However, while doing so, ensure that your objectives are quite specific.
Provide a Convincing “Reason for Being”
You need to give a clear picture of why and how the business has come to be. Clarifying this and justifying it through facts and figures will make the process simple in the long run. Besides, it can help inspire your staff once the company sets its roots.
Include a Thorough Market Analysis
Analyzing the competition and how to respond to the market will help you measure how successful the business can be. Looking at strengths and weaknesses of competitors and positioning oneself against them is an excellent way of being specific and effective.
Since business plans are more of a blueprint for a business, nothing should ever be left to chance. Taking such steps will help ensure the viability of your business. To further leave no stone unturned, the final and third installment will discuss some tips.