Winning business plans map out the major W's of your proposed business - who, what, when, why and where - to help you figure out that all important H-how. Who are the major players? Who are the owners, personnel, advisors, customers, competition, even the target audience for the plan itself? What do you want to achieve? What is your sustainable advantage? What do you offer? What do you produce? When did(will) the business start? When do you want to meet particular goals? Why are you in business? Why would customers want your product or service? Where is the business located? Where is the target audience? Where do new opportunities lie? And finally, how do you get from where you are to where you want to be?
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- Money follows management. Investors typically look first at the people involved in the company. The experience, education and track record of management and advisors need to be given great emphasis.
Ideally, a business plan is a intersection of everything inside the business (costs, products, services, personnel, etc) and everything outside the business (competition, market trends, political forces, etc). Forces inside the company meet those outside the company and a business plan is born.
Many entrepreneurs put to much emphasis on the inside forces and ignore the outside. No business is an island; no company operates in a vacuum. Even as you are tackling all the tiny details that need to be included in your plan, be sure to keep a grip on the big picture.
A winning business plan outlines goals, clearly communicates strategy and establishes plans for both the best and worst case scenario ( as well as any and all scenarios in between) that might before your company. Seasoned entrepreneurs and investors know to expect the unexpected and at the same time anticipate the challenges inherent in each particular business.
In great business plans, you not only sell your business concept, you sell yourself. Your entrepreneurial spirit and passion are critical factors to a potential investor. Communicating your team's experience, abilities and track record will take you even farther. The key is showing how your experience and abilities will support your business and help it to excel.
Tip
- Seasoned investors aren't fooled by "hyped" words written to compensate for a lack of experience or education. If you are starting out and don't have relevant experience, it's best to show that you are surrounding yourself with an experienced team of advisors and employees. Business is a team sport.
A good business plan can help you detemine what you need to make your business a success - from personnel to finnancing, location to advertising. But to truly make your company succeed, you must pay attention to what you find during plan preparation.
Writing a business plan is a labor of love, but also an exercise in logic and forethought.
