5 Tips On Writing a Business Plan

So, you’ve just come up with an idea that is truly revolutionary-- an idea that is going to change the world! Without the creation of a rock solid business plan, your idea will more than likely never take off the ground (and the world will remain unchanged).



By definition, a business plan is a formal statement of business goals, reasons they are attainable, and plans for reaching them. Another way to describe it, in the words of the US Small Business Administration, “A business plan is an essential roadmap for business success. This living document generally projects 3-5 years ahead and outlines the route a company intends to take to grow revenues.”



If you are new the business arena, and have never written a business plan before, there are a wealth of useful how-to guides already available, which you can find here, here, and here.



Now that you have familiarized yourself with the general structure and contents of a business plan (of if you are already familiar), we can touch on five of the most important tips we think are necessary (and occasionally overlooked) during the business plan creation process.







Be Clear and Concise

We often assume that this “tip” is more common sense than anything else, yet, routinely, we encounter overly-verbose, confusing business plans, written by entrepreneurs who assume that flowery language makes their plan appear more “well-written” and therefore, potentially more marketable. In truth; however, this is not a document that requires you to be Shakespeare. Save your more impassioned monologues for your presentations, they don’t need to be written in your business plan.

There is no “correct” length for a business plan, as all companies are unique, and some have more to include in a business plan than others, but as a guide, try your best to include only pertinent information for your potential investors, and give them the ability to have a full understanding of your product/service, your financial goals and outcomes within around 15 minutes. If it is going to take investors a long period of time to look over your plan, it is likely they will lose interest. So, basically-- stick to the point.

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Be Realistic

Investors don’t have the time or patience to listen to your pie in the sky ideas. If the numbers and information you present in your business plan look too good to be true, chances are it probably is, and investors will be able to sniff that out almost immediately. A business plan is no place for dishonesty. Be conservative in your projections and offer realistic goals and realistic steps to achieving those goals. Also be realistic/conservative with your timetables and available resources. Your potential investors will appreciate your honesty and attention to detail.

Make Use of Visuals

When it comes to visuals, you need to walk a fairly fine line. By and large, visuals, such as charts and graphs are great-- they can easily *show* investors about your business instead of just *telling* them about it, they are easier to digest, and they can really bring your plan to life. They also help break up large amounts of text, which can work to improve the overall flow of your plan.

Just remember not to overdo it. Not every piece of information that is required in a complete business plan can be represented by a chart or a graph, so don’t force them.

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Learn From the Advice of Others

Don’t assume that you’re the first person to ever start a business. And don’t assume that it is always you against the world. Many wise businesspeople have come before you, and many will be more than happy to help guide you on your path. Be confident and just ask them for their opinions or any advice they would be willing to share. You may be pleasantly surprised with their responses!

Also, don’t be afraid to learn from the advice of books too! There have been many illuminating manuals on business and business plan writing specifically. These are 5 of our favorites.

Avoid Superlatives and Puffery

Another way to turn off investors almost immediately is to fill your business plan with unjustifiably grandiose language about how your product/service is “the best” or “greatest”, etc. We aren’t saying that you shouldn’t have confidence in yourself or your idea, but your business plan is not the place for those opinions and feelings.

Within your plan, use ONLY justifiable adjectives, and if you do use a strong adjective to describe your product, it needs to be backed up with data to prove it.