Tips on how to write a Business Plan

BUSINESS PLAN TIPS

• 1. Create a Vision

It's tempting to roll up your sleeves and plunge right into the details of your business -- evaluating products, studying market segments, and sizing up your competition. But don't, at least not yet.

Before you get lost in the details, outline a clear vision and a coherent set of values for your company. Develop a mission statement, and use it to define short-term goals and priorities. Once you have a clear, big-picture road map for your business, you can plan your journey with more confidence.

• 2. Know That a Budget Isn't the Same Thing as a Plan

You can't create a solid business plan without a budget and a financial forecast. But a budget should ultimately reflect all the other elements in your plan.

If you don't have a clear picture of your industry, customers, competitors, and market conditions before you develop a budget, your numbers aren't likely to reflect reality.

• 3. Don't Ignore Your Customers

We all know the saying, "The customer is always right." This is most true when it comes to how they choose to spend their money.

Too many entrepreneurs assume they know exactly what their customers need without bothering to ask. Take the time to learn about your customers, and build your business plan around their needs and desires. 

• 4. Don't Underestimate Competitors

Don't be cocky. If you assume your firm will be the only game in town, or if you fail to take existing competitors seriously, you're asking for trouble.

Pay attention to the competition and you won't be unpleasantly surprised. Also, your competitors can be a great source of information about what works and what doesn't.

• 5. Be Prepared to Take Risks

Creating a business plan isn't about avoiding risk; it's about understanding and managing risk. That's why a good business plan anticipates possible challenges, as well as possible good and bad scenarios. It should also include a variety of strategies for meeting challenges and taking advantage of opportunities.

There's a difference between a calculated risk and recklessness, and your plan can help you make that distinction.

• 6. Get a Second (and Third) Opinion

The most experienced entrepreneur knows that they can still benefit from a different point of view.

Even if you're the only person involved in your business, find someone who can study your plan objectively and point out possible weaknesses, such as issues you might have missed, as well as highlight areas of strength.

• 7. Expect the Unexpected

Every business plan needs some wiggle room to allow for unexpected changes. Part of this involves creating budgets and marketing plans with some built-in flexibility. But adapting to change also means you might have to modify or even abandon business practices that worked well in the past. Stay nimble  

• 8. Don't fprget what makes you Unique.

A cookie-cutter business plan might help you get started, but it won't help you succeed. And while it helps to look at your competitors, don't model your business after them. After all, you're in business to flourish and beat the competition.

Learn from your competitors' strengths, but also learn how to spot their weaknesses and use them to improve your own business plan

• 9. Be Clear About the Rewards

Building a business involves hard work and struggle. But it should also include a clear set of rewards, both for you and your employees.

When you set goals in your business plan, include some concrete motivation that goes beyond the satisfaction of a job well done. People work harder when they know what they're working for.

• 10. Don't Skip the Plan!

Of course, the biggest mistake of all is failing to create a business plan in the first place. Planning is hard work, and there's no guarantee it will make your business succeed. But a good plan is still the best way to turn your vision into a realistic, coherent business. So don't just think about this step -- really do it!