4 Things to Think About When Writing a Business Plan

Posted August 3, 2021 by in Career

One of the most essential documents you’ll ever have to create is a business plan. A business plan can help you plan for the future, and it could convince a lender to give your business significant amounts of money. Of course, it could also demonstrate to them that your company is not an attractive investment proposition.

As a result, ensuring your business plan is a positive one that will help you as much as possible is vital. Here are some ways to make sure you get it right:

Keep It Short

Although you may be tempted to include every element of your company and its goals in your business plan, the best thing you can do is keep it short. Those who are reading it are busy people with other things to do, so the less time they spend reading your strategy, the better. As long as you have the most important items included, this won’t be a problem and may even make a lender look more favorably on you.

Attempting to cover everything takes time for everyone involved and is just not worth it. 

Don’t Sell Too Much

Of course, one goal of a business plan is to sell your company to a lender or investor. You want that individual to be as enthusiastic as you are about what this new company might do if given the opportunity, and your business plan can help make that happen. However, if you oversell, you may find yourself in hot water. The idea is to consider the business plan to be a brochure. The brochure is intended to pique a lender or partner’s curiosity and make them want to know more, much as you would browse through brochures for a new vehicle, a vacation, or any other big purchase. 

This is what a business plan and strategy should do. However, if you oversell, if you fill your business plan with how great the company is and how wonderful everything will be without getting into details, you may quickly turn people off. 

Don’t Forget About Your Competitors

Above all, a business plan must be truthful. It must describe what your company is all about and, of course, forecast where the company will be in a few years. However, it must also highlight any disadvantages or drawbacks, which may include the competition. Before committing any funds to your company, your business partner, investor, or lender will want to hear the whole story, and learning all you can about the competition will undoubtedly assist them. It will demonstrate that you understand your industry and recognize the need to be unique in order to stand out.

The issue with not disclosing the competition is that it may mislead investors. You might believe that not mentioning anything about anybody else doing the same thing as you offers you an edge, but it may actually lead people with money to believe that there is no demand for your product.

Specific Objectives

Divide the company plan into parts so that you can put down the objectives that you will accomplish within a certain period. So, what will be completed within the first year? What about the second? What about the fifth? What happens next? Will you purchase cars, stationery, and office furniture? Will you look for MBA admissions consulting because you want to advance yourself further? Make your objectives as precise as possible since this will provide prospective investors with a far better understanding of what you want to accomplish.