Are you thinking of starting a new business, or do you want to find financing? In both cases, you need to know how to make a business plan.
Business plans allow entrepreneurs to analyse and formally define every aspect of their business idea. In this post, you will learn how to develop a business plan for your business along with the best resources to help you do so.
What is a business plan?
A business plan is a formal document that describes your business objectives, your strategy, and the resources needed to put your idea into action. According to Harvard Business Review, entrepreneurs who make business plans are 16% more likely to succeed.
Knowing how to prepare a business plan will help and guide you as you develop your business, and, in addition, it will facilitate the process of obtaining financing, something undoubtedly essential when creating a business.
For which purpose you want to write a business plan?
If you have a growing business, make a business plan to help you obtain capital for your expansion, create a growth strategy, find opportunities and mitigate risks.
If you are just starting your business, use the business plan to identify the strengths and weaknesses of your business, communicate your vision to others, and develop accurate forecasts.
Most financial institutions and service providers require the development of a detailed business plan.
How to develop a business plan in 4 steps?
- Set clear goals.
Ask yourself two key questions:
What do you hope to achieve with your business?
What do you hope to achieve with your business plan?
Viewing your business plan from this point of view will help you focus on the end goal throughout the writing process and help you measure success.
- Do a market study
Before writing your business plan, gather the content and data necessary to create it. A market study includes researching your market and industry, ranging from customer research to the legal considerations you need to consider.
- Consider your audience
Because business plans have different purposes, they will not always be presented to the same audience. It is essential to understand who will read your business plan, what you want to convince them of and what doubts they might have.
You must adapt your business plan to the proper format.
Likewise, your audience will also determine what type of business plan format you should use, and this leads us to the next idea
Adapt the content to the correct format. If the business plan is only for you and your internal staff, you can have a business plan more to your liking. But if you need the business plan to obtain financing, choose the business plan that best suits the requirements of the financial organization.
- Write the content
When writing a business plan, it is essential to understand what information to include in it.
Before you start, ask yourself:
Why do I want to start or expand my business?
Do my goals (personal and professional) and my values complement my business idea?
What income do I need to generate for myself?
What education, experience and skills do I bring to my business?
Do not hesitate to contact us if you need help.