Having told you what you should consider when you decide to create your business plan, we will now try to help you in the actual creation of an effective business plan. The hardest part about creating a business plan is gathering the energy together in order to get started.
At first it might seem like a terribly daunting task. But once you get going you might find that writing the business plan is not as hard and as tough as it might seem. You can begin with some of the more easy steps first. Some of these go as follows:
• Describe your business and what makes it stand out from the others
• Try to talk about the specific market you have set as your target
• Try to explain what stage of development your business is in such as if it is brand new or if it is being bought out by someone else.
If you get caught up on a specific aspect of the plan, try not to worry because you can overlook it for now and just come back and fill it in later. You also don't need to worry about making a perfect first draft either, because you will just get some thoughts down to get the process going and you will always be able to come back and fix it up later on.
Bearing your audience in mind
Throughout the writing of your business plan you will want to bear in mind who your intended audience is going to be and why you are writing the plan in the first place. For example, if you are trying to attract equity investors you are going to want to place emphasis on the big upside of your business’ profit potential.
Whilst doing this, you will also need to be particularly even more careful in order to make sure that you choose to adequately disclose the risks and uncertainties that are involved in your business, because investors will often look for someone to blame if their investment disappears.
If you are attempting to get debt financing for your business then you are going to want to place emphasis on not the huge upside profit potential but rather on the certainty that the debt can be repaid. In actual fact, when you talk of big profits you might just scare away debt financiers because high profit potential will usually imply high risks as well.
If you are composing a business plan that is intended to help you run the business more efficiently, you might want to skip or write some very simple sections with all of the general background information on the company and the industry, and instead focus most of your plan on the areas of your plan which are currently of utmost importance to you.
More on the next page: Business Plan 2