How to Write a Business Plan in Four Easy Steps
Constructing a good quality Business Plan can secure the investment upon which a business thrives and act as a blue-print for success. This simple guide will help to clarify the process of writing such a plan and, applies just as much to service organisations as it does to any profit-driven business.
Credit Squeeze
The financial squeeze is on in 2008 and, just as many homeowners begin to feel the pinch, business feels it too. New business, in particular, may find credit hard to come by as we approach financial meltdown. A rigorous and well-constructed Business Plan can smooth the path in obtaining the financial injection to fuel your ambitions. This is an uncomplicated guide in how to go about identifying the content required, and then composing the words to appropriately describe your business. The assembled plan must be robust enough to withstand scrutiny and acquire the investment needed to build your dream. Done properly it can then act as the framework for consistent success.
What is a Business Plan?
In very simple terms, a Business Plan is a statement of where a business is now, where it wants to be and, how it intends to get from here to there.
Why do you need a Business Plan?
In a financial sense, a Business Plan is needed in order to convince your investors that the business is sound, the management is rational and the ambition is prudent. Operationally, a Business Plan will assist in ensuring that dreams can materialise, rather than remaining mere hopes.
Who needs a business plan?
In my opinion, every business or service requires a Business plan. From a large Multi-national company down to a sole-trader and across all sectors of industry, including service sectors such as local government, a properly constructed Business Plan can often be the difference between success and failure.
When is a Business Plan necessary?
Certainly, if you are looking to secure investment, right at the beginning of any venture. However, it is never too late to plan properly.
Where should a Business Plan be retained?
A properly constructed Business Plan will become a dynamic and constantly referred-to document. If it sits on a shelf gathering dust, it has not been properly constructed.
How do you create a Business Plan?
Ok, so having understood what it is and what its purpose is, the tricky bit is drafting it. However, you can make it as simple or as complicated as you like. What follows is a simple methodology which you can use, especially if this is your first attempt.
Step One
Begin with the end in mind. You need to define your business and identify where, or what, you want your business to be? This is best described in a simple statement; it used to be referred to as a “Mission Statement” but, that phrase is a little tired now. Simply call it your “Purpose” or, “Main Aim”. The importance of this is that it can be shared with all staff, who then can all identify with the ultimate goal. An even better way of achieving staff “buy-in” is to involve them in the process. This may be determined by the size of your organisation but, even if it is very big, run a competition for ideas and suggestions. It does not necessarily have to provide what is eventually used but, it will generate ideas and you will have sparked some interest.
