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How To Write A Business Plan: Plan First and Then Proceed

Are you wondering how to write a business plan? You know how important it is to have a plan, and then to put that into clear steps of action, but how do you get this important component of your business out of your head and onto the paper?

First, knowing what to emphasize in your plan will help you to outline an effective structure for your template. To begin with, simple, clear, practical instructions are a must – this is ideally easily readable and understandable to any employees you may have who work for you on a consistent basis. It’s important for them to understand your plan and what you intend to accomplish, so that they can get on the same page along with you. You can always provide supporting detail for those who want to dig deeper, and this could even be attached as a supplemental document.

Next, it is helpful to have your plan in an outline form – this makes it easy to scan quickly and to note major points of emphasis. Some business owners like to have each employee post a basic version of their plan at their workstations, so that all are reminded of their higher purpose in running the business.

Another very important component in answer to the question of how to write a business plan is to create an avatar. Another way to explain this is to describe your ideal customer, or your target market. Who are you trying to reach? If your company deals with hair color for aging men, then your avatar may be a 40+ male who wants to look younger and is fighting an ever-increasing growth of silver threads from his scalp. But if your business promotes marketing, then your avatar would likely center on business owners and entrepreneurs who need effective methods to promote their individual companies.

You’ll want to avoid anything that distracts your focus when writing your plan. We often refer to these as “rabbit trails”. Be especially wary of creating a plan that is too lengthy, boring, or containing vague descriptions. It will be worth a bit of extra effort to use concise terms and map out clearly your expectations of the company owner, manager, and staff as it relates to fulfilling the purpose and vision of your company.

Want to know how to write a business plan effectively? Remember to make it simple and clear, emphasize your target market, and avoid unnecessary distractions. Once you have a plan in place, you will likely find that your focus and purpose will become much more clear, and your sense of accomplishment will rise considerably.

So You Have Been Wondering How to Write a Business Plan for a Small Business

If you have ever wondered how to write a business plan for a small business, then you have come to the right place. The place to start is determining in your own mind, why you need a plan at all. OK, so you’ve got a great idea for a business. You have approached someone for support, emotionally or financially and you have been asked to write a plan. Or maybe you just want to get it clear in your mind, what you are going to do will work.

The first thing to do is outline your idea. What you are going to do, who you are going to do it for, how much you are going to get paid to do it, what your costs will be and how much you will make out of it. So write a quick overview of the idea.

Next, you need to state your skills for the job. What you have done before that relates to this business, how you got to this point and why you think you will be good at it. If you are going in with a partner or partners include their relevant backgrounds too.

Then write a description of where you are going to operate from. This is critical because business is about building momentum and maintaining it. Along the way you will have long term customers and short term customers. They will join you and leave you. You need a clear picture of how you are going to increase and maintain a customer base. If you are going to have a highly visible premises where you can tap into passing trade, you need to state how many people are passing, approximately, why the location is good, what sort of attention you can get and even maybe some of the offers you can make to lure customers through the door. A useful tool is if you can show some comparisons of competitors offers which seem to work. You will need to put your own “slant” on these offers as its not a good idea to copy your competitors exactly.

Now the hard part. Write a list of your expenses. Then your expected income. Do it month by month for the first 12 month period. You will know what your rent will be, likewise staff costs and raw materials. You will know how much you will want to take out of the business so include this. Factor in any sales tax or GST to give you a total sales figure you need to achieve. Now thinkabout sales patterns. December is a great month for most businesses and January a poor one. Add to this the fact you will be starting from zero. Month one may be slow and build up from there. Are you selling for cash and buying on credit or buying for cash and selling on credit. You will need to be sure you will have enough money (overdraft) ready to cover the “cashflow” of the business.

If you need machinery or a “fitout” of the premises, allow for this cost in your starting capital. If you plan to get to a certain level of profit and stay there forever then your initial cash plan will cover it. However, if you want to grow your business continually you will need more cash. Some idea of how that could be added would also help to reassure the parties of the businesses future. Maybe you can borrow against your house, maybe you are due for an inheritance, maybe a relative or friend has expressed interest in participating when the business gets to a certain level. Either way, some idea of how growth will be funded will be useful at this stage.

So I hope this has helped you in, how to write a business plan for a small business. Its a good idea to talk to your accountant and bank manager during this process, also anybody who has business experience and is positive. Beware of the naysayers, its easy to do nothing or advise others to do nothing. Without the visionaries of this world no progress would ever be made.

Discover 7 Helpful Tips on How to Write a Business Plan

Have you learned how to write a business plan? If you haven’t, have no fear, because it is not that difficult. You may easily write a well constructed business plan, if you learn some useful advice in this area.

A business plan is an effective sales device, so you need to construct it very attractively and with clarity without creating misunderstanding in the minds of the investors.

1. The wording needs to be concise, plainly understood and simply stated. Try to focus primarily on key issues and don’t worry about unimportant details. It is as essential to understand what to exclude and as what to include. Hence, be sure to cover all vital points.

2. Clearly present the uniqueness of the article in question. Avoid trying to do very much, as it shows poor understanding what you can do best.

3. Write goals that are realistic, consistent, unambiguous, and are likely to be possible considering your industry.

4. Talk about your desired customers, how the desired market works, and how will you satisfy the needs and wants of your target clients well.

5. Make clear a thorough realization of your sponsor’s interest and needs.

6. It is not a good idea to overemphasize your passion for your product or letting others in on your means of productions.

7. Demonstrate how your team has a balance and record of positive outcomes to make use of the market opportunity in a way that will generate profit. In addition, demonstrate that your team has a lasting determination to stand with the proposal.

It is better, when you explicitly take on problems and risks and explain techniques to handle such situations. In addition, make sure that your business plan is complete and can be understood easily and has no need for any further information or explanation.

Lastly, approach your audiences sensibly. Remember that there may be homogeneous as well as heterogeneous audiences. Hence, ensure your proposal can attain the needs of diverse audiences.