fbpx
Edit Content

How To Write A Business Plan That Works For You

Business Plan

Like many facets of business, writing a business plan is one area that has probably been overemphasised but yet fails to deliver on its intrinsic value. You will learn how to write a business plan that works.

If you are reading this article, it is because you know the importance of a business plan. To add to what you know, think of a business plan as a map between two points, one point being where you currently are and the other where you want to go.

Write your business plan

Let’s help you write your business plan

As with many maps, there is more than one route between two destinations. Not every business plan works. You will learn why a particular business plan works.

See Also: Reasons why you need a business plan for your business.

Reasons For Writing A Business Plan.

Start Your Business in 30 Days Even If You Don't Have An Idea
Start Your Business in 30 Days Even If You Don’t Have An Idea

I have learned from experience that there are two reasons why people write business plans. One reason is more popular than the other. The audience you write the business plan for ultimately influences the inputs of the plan.

Investors, Pitches, Competitions And Loans

About 80% of entrepreneurs who know the importance of business plans never write one except when compelled to. Pitch events, investor engagements, and funding requirements from financial institutions are the reasons many entrepreneurs write business plans.

The entrepreneur approaches writing the plan like a hurdle that has to be crossed or something that has to be checked off a list. A lot of inputs into the plan are doctored and more importance is placed on meeting the investor or funding requirement than on what’s actually achievable by the business.

Usual suspects are sales being overstated, expenses understated or completely left out and the impression of high net margins and a growing balance sheet.

See Also: Retail business ideas to start with low investment and make money.

For Yourself

Writing a business plan for you as an entrepreneur is good thinking. The document is for you and is a realistic assessment of the potential of the business. You are not trying to look good to anyone, you simply want at every time to be able to predict how well or otherwise your business is doing if it is on course or needs realignment.

The ideal scenario is for you to have one plan which works for you and your investors or your funding requirements. The plan will come back to haunt you if you have “gamed” your numbers and you don’t meet your numbers.

See Also: 100 Profitable business ideas to start now and make money for aspiring entrepreneurs and investors.

Developing The Business Plan

Business plans used to be lengthy 30-page documents (and maybe there is still a use for those types of documents) not many people can go through a 30-page document. There are easier techniques to achieve the same objectives.

Those kinds of business plans does not work anymore, that’s why we are focusing on business plans that work.

At a high level, the business can be assessed through a tool called the business model canvas. Your BMC looks at the model of your business, its key assumptions, and key stakeholders and how you aim to deliver value to the customer.

You could also have a business plan that only looks at the business through numbers only. While not a complete plan, it allows you to dive in and create a working plan that can hold you accountable through the numbers that drive your business.

The more complete business plan format takes everything about your business into account.

It looks at your sales assumptions and figures, all your expenses, direct selling expenses and other overheads, your human resource plan, hiring timelines and budgets, your marketing plan and budget, your operational plan and overall business strategy, your management team, and funding plan.

You also have websites like score.org and liveplan.com that help you build your business plan and there are tons of resources available online that help with all facets of the business planning process. The idea is to keep it simple. It is your business and the plan must make sense to you.

Go from idea to starting your business in 30 days
Go from idea to starting your business in 30 days

See Also: Business challenges faced by female entrepreneurs.

Common Mistakes With Business Plan

Wrong Financial Projections

Most entrepreneurs are overly optimistic and believe they will sell a lot of their products or service. They overstate revenue and understate expenses.

Limited Market Research

Many entrepreneurs do not research the market enough to get information on the competition and the industry they intend to play with. Some even assume their product and service offerings are new and they have no competition.

Marketing Assumptions

You will need to spend smartly on marketing. There are a lot of options that will appeal to you, but the general rule is 20% of your marketing efforts will bring 80% of your results and the task is for you to find the 20%.

See Also: How to start a successful mini importation business.

Priorities And Milestones

Every plan should have milestones. What do you want to achieve and when? Your plan should be broken down into measurable priorities. You should have specifics that you are focusing on per time.    

Done And Dusted

Many entrepreneurs write business plans and that is it. They keep the plan under a table somewhere and forget they ever wrote a plan. A business plan is a living document used to assess the health of the business on a daily basis. A business plan should also be amended routinely to align with the current realities of the business.

Let’s create visibility for your brand and put your business on the world map. Contact us today to make your brand the preferred choice for our audience of entrepreneurs and investors.

To keep track of our activities, follow us on Instagram.

Share:

Facebook
Twitter
LinkedIn

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Join Entrepreneurs Family

No spam, only business insights and tips. 

Entrepreneurs Sign Up

Business Registration

Most Popular

Join Entrepreneurs Family

No spam, only business insights and tips. 

Entrepreneurs Sign Up

Related Posts

Types of small business insurance

Types of Small Business Insurance Every Business Should Know

Starting a new business is a big deal. It’s exciting and full of possibilities. To move forward confidently, it’s crucial to know about the types of small business insurance that protect your work from costs that unexpected events, like legal issues, damage, or business interruptions, might cause. This article will

Why Entrepreneurs Embrace Business Education

Why African Entrepreneurs Embrace Business Education

Why do African entrepreneurs embrace business education? Entrepreneurs are the lifeblood of economic progress, with small and medium-sized enterprises (SMEs) making up 90% of all businesses. These SMEs are more than just companies; they are the engines of job creation, contributing “up to 40% of national income (GDP) in emerging

Incorporating Mindfulness into Your Business Routine

Disclaimer- Presented by BetterHelp. Incorporating mindfulness into your business routine has many benefits. In the often chaotic world of business ownership, finding moments of calm and focus can be incredibly difficult. However, integrating mindfulness practices into your daily routine can offer numerous benefits, both for your personal well-being and your

How to Manage Anxiety in High-Stakes Business

Disclaimer- Presented by BetterHelp. How do you manage anxiety in high-stakes business? From client presentations to high-dollar sales calls, there’s no shortage of anxiety-inducing situations in high-stakes businesses. However, when your business’s success relies on your self-confidence and ability to perform, there’s no room for anxiety. So, what can you

Scroll to Top

Join Entrepreneurs Family!

Get access to FREE business insights and funding opportunities daily.

Entrepreneurs Sign Up