Are you considering starting a new business? If you want to be successful and get funding, you will need to have a thorough plan. While you may think that writing a business plan is intimidating, you do not need to do anything fancy to put together a solid document.
As long as you have passion, vision and organization, you can write a compelling and informative company plan. Here are our top tips for crafting a business plan.
1. Avoid the fluff
While you want your business plan to look great and be engaging, you do not want to include filler language. According to business plan tips from Entrepreneur, you should always prioritize substance over appearance. Investors do not want to waste their time reading long plans with empty claims. Get to the point and communicate your goals concisely.
2. Include evidence
You need to back up every claim in your business plan with solid proof. If you state that your line of products is going to take the world by storm, make sure you have facts to support that statement. Use statistics, resumes and reasonable estimates to show potential funders that you are serious.
3. Know your audience
Create unique business plans for each audience, including:
- Venture capitalists
- Individual investors
- Joint-venture companies
Write your plan with the people you are targeting, similarly to how you write a resume to particular job applications. Research the potential investors or banks so you can communicate why their interests match up with yours.
4. Offer a solution
An effective business plan explains how you plan to solve a problem. Your plan should also explain why you have the perfect group of people to address this issue and how it will communicate its problem-solving communities to the market.
These tips will help you avoid common mistakes and use proven strategies to attract investors and get your business off to a great start.